With New Zealand’s new online casino framework set to go live next year, BetComply Operations Director Loes Wetzer breaks down how best to approach the licence application process, and why getting things right in New Zealand could lead to success elsewhere.

The global trend of grey markets turning white continues to pick up pace.

Next year, New Zealand will be the latest to be brought into the regulated fold, in line with strong public support for legislation that better protects players.

Last July, the New Zealand government announced that it would regulate online casinos for the first time. It plans to move relatively quickly. We should see a bill by April, with a vetting and auction process in February 2026. The licensed framework could be live as soon as April next year.

A total of 15 licences will be available to online operators, and we can expect some of the biggest names in the industry to pursue them.

While New Zealand’s five million citizens don’t constitute a particularly large market, it is a comparatively high value one with a strong gambling heritage. The government is budgeting for a US$300m annual revenue market, although the current grey market might already be double that size.

How to prepare

For operators eyeing up the opportunity, it’s important to note that New Zealand has already made it clear that player protection is the driving force behind the move to regulate.

Licensees will be allowed some limited advertising, but they won’t be permitted to offer online casino games alongside sports betting and lottery products, according to the country’s Department of Internal Affairs.

It’s likely the Department will look towards the heavily regulated markets of Western Europe for guidance on exactly how this is implemented, and that should provide an indication of how operators seeking a licence should be preparing.

The auction system will probably demand applicants present not just a clean record, but a deep understanding on how to offer these products without causing harm. We’ve seen regulators in the Netherlands, the UK and other jurisdictions demand similar.

One of the most critical elements will be having a strong compliance track record. New Zealand’s regulator will likely scrutinise applicants’ past behaviour in other markets, assessing whether they have demonstrated a commitment to responsible gambling practices and compliance with licensing conditions elsewhere.

Operators that have faced enforcement action in other jurisdictions, whether for advertising violations, failures in player protection, or operational misconduct, may find themselves at a disadvantage.

And it goes without saying that continuing to serve New Zealand’s grey market while applying for a licence is unlikely to do operators any favours. In fact, I wouldn’t be surprised to see a cooling off period introduced for those who have been active.

In short, prospective licensees will need to present a really strong case on paper to the regulator. There’s only 15 of these licences up for grabs, and it’s going to be competitive.

Bigger picture

New Zealand may be one, relatively small market. But it does represent the continued fragmentation of the online gambling industry.

For many years there was a pool of lucrative grey markets – Canada, Japan, Brazil and others – where operators felt comfortable enough, despite the lack of local frameworks. That pool is shrinking rapidly.

In its place, operators now have one of two paths to choose: high risk black markets, or a patchwork of heavily-regulated white markets.

We’re still firm believers that the latter option offers plenty of opportunities. Yes, every market is different. But the core approach is the same. If you can succeed in the Netherlands, Sweden or the UK, you can probably also succeed in New Zealand.

Building that depth of compliance expertise, learning to navigate licence applications and renewals, implementing player protections without negatively impacting the user experience. These are all now a competitive advantage.

Those who are investing in these elements are already thriving in multiple markets. Don’t be surprised to see the same familiar faces leading the charge in New Zealand.