New Zealand begins auction for first online casino licences
New Zealand’s push to regulate online casinos reaches a major milestone today, with the government launching an auction that will determine which operators can compete for the country’s first online casino licences.
The Department of Internal Affairs is using an ascending-clock auction to allocate the right to apply for up to 15 licences under the Online Casino Gambling Act 2026.
Operators have already been through an expression-of-interest process, which opened in July and closed on August 14. Applicants were required to demonstrate access to at least NZ$7.5 million in capital and pay a NZ$19,000 expression-of-interest fee.
Successful applicants have since been notified and invited to today’s auction. However, the DIA has declined to disclose either the number or identities of participating companies in order to protect the integrity of the process.
Winning at auction does not guarantee a licence. Successful bidders move into the full application stage in October, where they must submit a business plan and detailed strategies covering advertising, consumer protection, gambling-harm minimisation and regulatory compliance.
The government expects to begin issuing licences from early 2027.
The auction represents a major change in the way New Zealand handles online casino gambling. Offshore casino operators have historically been able to accept New Zealand players despite being based and regulated overseas, while domestic companies have not been permitted to operate online casinos.
Under the new system, the government intends to bring that existing market inside a regulated framework. Up to 15 licences will be available, with each licence attached to a particular online casino platform or brand. No operator will be permitted to exercise significant influence over more than three licences.
Operators that were already serving New Zealand customers before the new legislation came into force have been given a transitional period, but the market will begin tightening considerably from December 1. Operators that have not secured the right to continue through the licensing process will be required to leave the New Zealand gambling market.
Several major gambling groups have previously indicated an interest in securing a position in the new market.
Entain is one of the most notable potential participants because it already occupies a unique position in New Zealand gambling. The international operator entered a 25-year strategic partnership with TAB New Zealand in 2023 and operates the TAB’s betting business.
New Zealand has subsequently extended TAB NZ’s statutory monopoly over sports and racing betting to the online market, effectively giving the Entain-operated TAB exclusive rights to offer regulated sports and racing wagering to New Zealand customers.
Entain has been an outspoken supporter of regulating online casinos and has been reported among the companies to have expressed interest in the casino licensing process. Earlier this year, Entain Australia and New Zealand said the introduction of a regulated online casino market represented an opportunity to bring stronger consumer protections to an activity already taking place through offshore websites.
A successful casino licence would therefore potentially give Entain a presence on both sides of New Zealand’s regulated online gambling market — although online casino licences will be competitive rather than exclusive.
SkyCity Entertainment Group has also made its intentions clear. The Auckland-based casino operator, which already operates an offshore-based online casino targeting New Zealand customers, has repeatedly said it intends to participate in the licensing process.
In its August investor presentation, SkyCity described the New Zealand online casino market as being worth more than NZ$1 billion and said its entry was subject to winning a licence at auction and successfully completing the subsequent licensing process.
Stake and Australian wagering operator Dabble have also been reported as having lodged expressions of interest, while other international gambling companies have been linked with the process.
However, exactly which companies are bidding today remains confidential. The DIA has not published the list of successful EOI applicants and has said it will not disclose the number of companies taking part in the auction.
The eventual licence holders will enter a substantially different market from the largely offshore environment that has existed until now. Licensed operators will face New Zealand-specific requirements covering age and identity verification, player protection, advertising, self-exclusion and gambling-harm prevention.
Operators will also pay a regulatory levy equivalent to 3.5% of their online gambling profits.
The government expects the first licences to be issued from early 2027, with licensed operators ultimately becoming the only online casinos legally permitted to serve New Zealand customers.
