HomeGamesUK Gaming Companies Could Capitalise on Developments in New Zealand

UK Gaming Companies Could Capitalise on Developments in New Zealand

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New Zealand’s ambitious plans to launch its own fully regulated online casino market by 2026 could hand companies in the United Kingdom a massive boost.

According to Reece Calderbank, Global Sales Director at Delasport, the new regulatory framework will provide a pathway to long-term growth, innovation and competitive expansion.

Market Size and Potential

New Zealand has a population of just over 5.2 million people, an internet penetration rate of 93 percent and smartphone adoption rates of over 90%. 

Given those eye-catching numbers, it is unsurprising that the best online casinos in NZ are already flourishing, despite the lack of regulatory oversight from the Kiwi government.

The Kiwi online casino market is worth $267.6 million, but industry experts have forecast the sum will more than double to $584.5m by 2030.

Broader gambling revenue incorporating online and retail is expected to reach $3.11 billion in 2025, growing to $3.53bn by 2029.

The online casino sector is expected to lead this growth as Kiwis have a cultural fondness for pokies (slot games) that cater to the mobile audience.

Desktop remains the top revenue source in 2024, but mobile is poised to take the lead by 2026 because of user demand for convenience and more immersive experiences.

Regulatory Framework: Formalisation and Compliance

New Zealand’s 2003 Gambling Act currently governs land-based and some forms of online gambling, but it is not really fit for purpose in the digital age.

However, things are changing, with New Zealand set to introduce a stringent licensing and regulatory framework for online casino operators by 2026. 

New Zealand plans to issue 15 licences via an auction that starts in February. The winning parties can go live by April. These licences will run for three years but can be renewed for an additional five. 

The Kiwis will enforce stringent age verification, advertising restrictions and harm minimisation protocols. Companies that do not comply will receive fines of up to NZ$5 million.

The Department of Internal Affairs (DIA) and the Gambling Commission will regulate and handle oversight in the industry.

There will be a 12% gambling duty on Gross Gaming Revenue (GGR), a 15% Goods and Services Tax (GST) and a problem gambling levy of 1%.

New Zealand is packed with opportunities for local and international operators if they can meet the high standards of responsible gambling, data security and advertising ethics.

UK Operators Are Well-Positioned to Capitalise

Several established gambling operators based in the United Kingdom are interested in capitalising on this exciting opportunity in New Zealand.

Betway and bet365 are among the companies hoping to acquire one of the new licenses. Their expertise garnered from operating in other jurisdictions could be invaluable in New Zealand.

They have enjoyed success in developing localised products and advertising strategies for different markets, which puts them in a solid position to secure a license.

The UK adopted responsible gambling tools, such as deposit limits and advertising controls, several years ago. Companies in the sector have a reputation for consumer protection, which will aid entry into New Zealand.

What New Zealand Players Want

An estimated 80% of New Zealand’s population regularly engages in some form of gambling. Slots and pokies are the popular choice, as around 90% of online casino users play them.

Local mythology, adventure, sports, movies and fantasy are the popular themes. Players are also fond of blackjack, roulette, poker and live dealer games.

The latter has become especially popular with Kiwis thanks to mobile optimisation and better streaming infrastructure across the country.

New Zealanders are also embracing new payment methods. Cryptocurrencies such as Bitcoin and Ethereum are gaining traction, but operators know that traditional bank transfers remain crucial.

Younger people aged between 18 and 34 are interested in new gambling avenues. They tend to venture into eSports betting, social casino features and gamified casino experiences.

The operators who deliver in these areas are the ones which will enjoy the greatest success in a market which is ripe for significant expansion.

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Anshu Dev
Anshu Dev
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