The current gambling scene in New Zealand is still a work in progress. The government has recently announced that an initial 15 new online casino licenses will be offered to prospective gambling sites wanting to set up and build the Kiwi market.
The Ministry of Internal Affairs alongside with the Governance and an Administration Committee have drafted a bill that will see 15 new brands offered licenses to operate and kickstart the New Zealand online gaming market. At present, Kiwis that wish to indulge in playing at online casinos, would need to visit, register and play at offshore sites, which in the eyes of the Kiwi law are deemed as illegal.
Does illegal mean unlicensed and unregulated?
Let’s take a look at this with the help of the team at OnlineCasinosRealMoney.co.nz; Illegal sites can be both licensed and unlicensed gaming sites. Since the law in New Zealand is still being implemented and new casinos are in the process of acquiring a license, all other casinos are regarded as illegal. A site could either hold an offshore license, e.g. an MGA (Malta Gaming Authority) or a UKGC (United Kingdom Gambling Commission) approval and still be regarded as illegal for Kiwis. Such sites would still allow New Zealanders to play, yet since online casinos are currently not allowed in the NZ market, the site is dubbed ‘illegal’. Below, we highlight the difference between licensed and unlicensed illegal sites.
Offshore Legal Sites
- Licensed by a regulator that is not the NZ Commission.
- Allow Kiwi players to register and play
Offshore Illegal Sites
- Unlicensed online casinos that operate with no gaming license
- Allow Kiwi players to register and play.
When Kiwi players register and play at the above listed websites, New Zealand does not get any tax or GGR or revenue out of the gameplay. This is the main reason that sites are listed as ‘illegal’.
The Upside for Kiwis playing at Offshore Online Casinos
A good number of offshore casinos allow New Zealand players to play at their online casinos. Potential players can look up the FAQ section to check if NZ punters are allowed to join. Whilst the Government of New Zealand might see the sites as illegal, you will be amazed with the upsides of playing at offshore sites.
They are not actually unlawful
It is not illegal to play at offshore sites. Whilst the term ‘illegal’ might sound unlawful, players will not go to jail when playing. The only thing we always suggest is checking that the site does hold a gambling license. This information is easily available at the site’s ‘About Us’ section. The situation got so weird that ‘local’ casinos like SkyCity and Christchurch Casino have online options operating from Malta.
Tax Free Play
With the current legislation currently underway, playing at offshore sites whilst in New Zealand is indeed tax free. Players that are lucky enough to generate a win, will not have to pay tax on winnings. This benefit is only operational whilst no actual online casinos are operational in NZ. Once the law is implemented, we envisage that winnings from offshore sites will also be subjected to tax.
NZ targeted Payment Methods
Players visiting offshore online casinos from NZ, can still benefit from payment options that target the Kiwi market. Such payments include Paypal, Skill, Mastercard, Visa and Poli that all allow transactions with the NZ$. This means that New Zealand punters would not need to pay any foreign exchange fees when playing at offshore sites.
Accessible from anywhere
Whilst some offshore sites require you to use a VPN to connect and play via a local server, most of the sites do not. You would just need a decent mobile / data connection to connect and login at offshore sites. Most online casinos also go the extra mile in offering dedicated mobile applications. This allows Kiwis to register and play both at home and on the go.
Unlimited pokies and table games
Offshore online casinos are not limited when it comes to poker availability. Many players in New Zealand enjoy the thrills that poker games offer. The instant gratification feeling is unlimited with the wide variety of pokies located at offshore websites. Traditional, bonus pokies and jackpot games are all available. Other games that NZ punters can binge on at offshore sites include table games, instant games and even live casinos.
Offshore casinos offering sportsbook
New Zealand rallies around national teams when international Cricket or Rugby games are sanctioned. The country is well known for the famous, drawing many crowds to the sport. Along with following local and international sporting events, Kiwis also like to place bets on their teams, with the country’s GGR revenue expected to peak at US$516.43m by end 2025. Many offshore sites also offer sports betting with dedicated NZ betting markets available. This offers a one stop shop option for punters looking to play casino games and wager bets on local sporting events.
The downside cost of playing at Offshore casinos sites
Many attributes paint offshore sites attractive to Kiwi punters. Not paying any taxes on winnings and availability to play are top of the bill, yet not everything that glitters is gold in the offshore casino market. Many Kiwi players registering and playing at offshore sites might face challenges that include some of the following:
Lack of Regulation
When a regulator is available within the country, a dispute committee is also launched. This committee is set up to be available for the player should any disputes arise. Disputes include payment payouts, game issues or RG matters. With online gambling currently illegal in New Zealand, there is no regulator to appeal to should Kiwis encounter any issues when gambling at offshore sites.
Risk of playing at unlicensed offshore sites
With no actual legal sites operational within the New Zealand gaming market, players might be inclined to join offshore unlicensed sites. Such websites do not have a gambling license, hence no regulation to uphold. Sometimes referred to as ‘rouge sites’ these sites might dedicate rules as they go along, with the player potentially facing issues.
No RG Tools, potentially leading to Problem Gaming
Both the MGA and the UKGC require each license holder (aka offshore sites accepting Kiwi players) to offer RG tools. Such tools include deposit limits, loss limits and even barring oneself from gambling. Other offshore regulators along with potential rogue sites might not offer such services. This could possibly lead to gambling addictions.
Keep in mind that ‘rouge’ casinos have no regulator or laws to abide by and have no interest in offering responsible gambling tools. This does not apply to all ‘rouge’ sites.
Potential changes to bonus with new gambling regulations implementation
With NZ offering new 15 gambling licenses to potential new online casinos, offshore sites accepting Kiwis would also need to pay a duty tax of 12%. Alongside this, offshore casinos are expected to also be subjected to GST. Potentially, offshore casinos would need to review the bonuses offered to NZ visiting players to mitigate this cost. Other impacted areas could include implementing higher wagering requirements, payout restrictions and withdrawal fees.
What is currently legal?
- Playing at regulated and licensed offshore casinos.
- Enjoying bonuses at offshore sites.
- Wagering on sports at local and offshore sites.
- Using a variety of payment options including e-wallets and cryptocurrencies.
- Poli transfers accepted and offered at offshore sites.
What is currently illegal?
- Advertising and operating an NZ casino within the New Zealand market. (This will change with only 15 gambling licenses being offered with the new legislation)
- Players under the age of 18 indulge in any form of gambling. (This might be allowed at rogue or offshore sites)
- All ‘local’ online casino gambling is currently illegal in New Zealand.
- Operators cannot set up online casinos in NZ.
The future of New Zealand Gambling
The New Zealand Government is expected to announce shortly who the 15 gaming licenses will be awarded to. 2026 is expected to be the year where online casinos will be inducted in the market, thus launching a new gambling arena for online casino players. NZ punters will not have to seek and register at offshore sites anymore, with 15 new sites launching soon.
Whilst the regulator is set to work closely with the new license holders, though rules are expected to be adhered to, with regulation evolving around responsible gambling. The player will be protected at all times, hoping for the market to be a fair and competitive one.
OnlineCasinosRealMoney.co.nz expects that new license holders are going head-to-head to secure an NZ player base. This will be executed via rewarding bonuses, UX and even incentives like a reward scheme. The truth is, when a new market is launched, the competition is fierce, with the player having many options to choose from.
From a tax perspective, the government would expect to get GGR in return, with the money deriving from online gaming, including games which require no deposit, pumped back into investment and social initiatives. It is a win- win situation for both the player and New Zealand. This is a positive step toward development innovation, with the Government open to offering new licenses in the new future.
