March 15, 2025

State of Gambling in New Zealand 2025

By Sihle Qwabe

Gambling in New Zealand is at a pivotal moment. The legislation is evolving; the overall attitude of the Kiwis grows more juxtaposed to the positive impact that gambling has on the economy. And with more stringent legislative steps coming in 2025, the times ahead are nothing if not interesting.

We will examine the current state of gambling in New Zealand, the legal frameworks that govern the industry, the social factors that influence how gambling is perceived, and the economic benefits of Gambling in New Zealand. There are also new regulatory updates to touch on, emerging industry trends and the impacts they might have on operators and gamers alike.

Legal Framework for Gambling

New Zealand’s gambling landscape is shaped by diligent legislation that aims to balance entertainment with responsibility. This framework is underpinned by the Gambling Act of 2003 which seeks to minimize harm to denizens while supporting community initiatives funded through regulated gambling proceeds.
As such, this act classifies gambling activities into four classes, each with its own specific regulations. They are as follows:

Class 1 and 2 Gambling: Low-stakes games (raffles and small-scale lotteries) to raise funds. These do not require licenses as long as their turnover remains within prescribed limits.
Class 3 Gambling: For higher-stakes raffles and casino nights operators must obtain licenses from the Department of Internal Affairs.
Class 4 Gambling: Non-casino gaming machines (pokies) are tightly controlled, and funds raised from them are primarily directed towards community projects.

The act emphasizes harm prevention, which includes mandatory interventions when necessary, and restrictions on gambling advertising to ensure that the sport is conducted fairly. And, while most forms of gambling are prohibited (unless specifically authorized), there are certain exceptions such as lottery, pokies, TAB sports betting and charity-based gambling.

However, as more challenges arise, the laws must also evolve to keep up with them. Online gambling has posed a fair share of difficulties to the land of the Kiwis, hence the new developments in the Gambling Act of 2003. These include:

Review of Class 4 Gambling.
Introduction of the Gambling (Venue Payments) Amendment Bill.
Digital Gambling Reforms (which explores ways of modernizing the Gambling Act of 2003).

The government’s approach to online gambling is cautious but pragmatic. While the Gambling Act of 2003 prohibits local operators from offering services at home, it does not restrict Kiwis from enjoying offshore gambling sites if they want to. This of course has raised concerns about consumer protection and the loss of revenue that could have otherwise benefited local initiatives.

Market Trends and Economic Impact

Online gambling in New Zealand has witnessed a significant transformation over the past decade. It’s all thanks to technological advancements and regulatory shifts. The Internet has spread all across the world, and the ubiquity of smartphones is omnipresent at its peak. So, it’s a no-brainer how mobile gambling platforms have revolutionized the whole industry. Their convenience is unparalleled. You can now play your favourite casino games, bet on sports or the lotteries anywhere you want, and all you need is just your fingers and an internet connection.

Gambling is a substantial contributor to the local economy. According to industry reports, Kiwis spend over $2 billion a year on games of chance – with a growing share attributed to online activities.

This influx of revenue has broader implications. That is, it boosts economic growth through job creation, technological advancements and increased consumer spending. Another upside to local operators is that they also reinvest their spoils in the economy by supporting community initiatives that make New Zealand a better place.

Social Implications of Gambling

Ideally, gambling is just a pastime; but who are we kidding? For some people, it can lead to devastating consequences. Approximately 5% of New Zealand adults are considered to be at risk of developing gambling problems, with around 1% experiencing severe harm. There is an undeniable need for effective harm minimisation strategies to mitigate the impacts of problematic gambling. The Gambling Act of 2003 outlines effective tactics such as:

Self-exclusion programs
Pre-commitment tools
Public awareness campaigns

Gambling operators in New Zealand are required by law to display responsible gambling messages and provide support services for players who may be at risk.

Still, the public opinion on gambling in the country is still divided. While many see it as a source of entertainment and a possible economic benefit, others view it as a significant social issue, a blasphemy if you will.

Communities most affected by problem gambling often report increased financial stress, relationship breakdowns, and mental health challenges. Hence the cultural narrative is slowly swaying towards growing awareness of gambling harm and the importance of being responsible when engaging with this past time.

Plus, there is a vast network of support systems for those affected. These include organisations like Gambling Helpline NZ which provides free, 24/7 confidential support through phone and online services. Additionally, the Ministry of Health funds numerous initiatives which include face-to-face counselling, community programs and Whānau-focused support.

International Comparisons

New Zealand and Australia share similar cultural ties, but their approaches to gambling regulation differ significantly. In New Zealand, the Gambling Act of 2003 serves as the cornerstone for all laws and also ensures that all activities are licensed, fair and socially responsible. That’s not the case in Australia. Australian gambling laws are more fragmented, and regulations vary from state to state.

As New Zealand navigates the ever-evolving gambling landscape, there are commendable practices from other regions that could be adopted. For instance, Sweden has a licensing system that requires all operators to adhere to strict regulations on poignant matters such as deposit limits and mandatory breaks during a gaming session. The Kiwis could also benefit from a similar framework.

But that is not to take away from New Zealand’s current efforts because they have been progressive and have placed the overall well-being of the community above all else.

Future of Gambling in New Zealand

The gambling industry is on the brink of transformative change, and technology is at the centre of it. The rise of cryptocurrency casinos and the integration of AR/VR gambling experiences have redefined how players interact with online gaming platforms. And these advancements are anchoring a new era of convenience and innovation – which is sure to attract a broader and more tech-savvy audience.

Simultaneously, upcoming legislative changes will affect the industry’s trajectory as well, one way or another. As governments tighten regulations to promote responsible gambling and combat the scourge of money laundering, operators must become fluid as well to adapt to these changes, which might prove difficult for smaller operators.

Looking ahead into the next five years or so, the industry will grow exponentially and embrace socially conscious practices. The future is all innovation and adaptability.