Overview
New Zealand’s Department of Internal Affairs is in charge of gambling regulations. State-owned institutions and organizations own the biggest proportion of the gambling industry. It is considered that communities in the country are the primary stakeholder group. A portion of profits from public gambling is required to be turned over to communities in New Zealand. Community interests include groups for whom gambling activities raise funds, gamblers, and organizations which provide services and research on the social effects of gambling.
The largest proportion of the gambling industry is operated by state-owned institutions. Expenditure on gambling (losses experienced by players) was $NZ 2.034 billion in 2008 ($NZ 480 per capita), a tenfold increase over 1985 figures.
Are Online Casinos Legal In New Zealand?
Yes, it is legal to play online pokies at online casinos and sites. Gambling in New Zealand conducts several activities that are still prohibited across the board including bookmaking and remote interactive (online) gambling. But, while Kiwi law dictates that it is illegal for players to gamble at any online casino based in New Zealand, any player of age can legally play at online casinos based outside the country. However, advertising from overseas gaming operators within New Zealand is banned.
If we compete Local New Zealand Casinos with International Casinos it allows NZ Kiwis to place their bets and use that platform. Then we will say that New Zealand-based casinos are illegal while international casinos are technically legally played by NZ players who enjoy their journey.
This means neither the New Zealand Gambling Act nor any other NZ law makes using overseas gambling websites a crime. What is illegal is to advertise these websites and the penalty is $5,000 per offence. This means Bet365, PokerStars, and other websites cannot market here on TV, in newspapers, or any other mediums. If players find their sites and use them, there is no crime for either the operator or the player.
Gambling Act of New Zealand
The Gambling Act of 2003 is the primary piece of legislation that governs and regulates gambling in New Zealand. It focuses on ensuring that communities benefit from the profits acquired by the gambling industry and that the negative effects of gambling are minimized. So while gambling is considered one of the greatest attractions in the country, the government is meticulously regulating the gambling industry. The first major casino opened in 1994, and as the industry experienced rapid growth, the Gambling Act of 2003 was established.
The Gambling Act of 2003 (this link is to the most recent version) is the primary law that regulates gambling in New Zealand. Sections 22 and 23 cover cases where no gambling license is required to operate.
Reading Section 22 one can interpret running poker tournaments, betting pools, housie (bingo), or other forms of gambling other than machines, where no cut (rake) is taken and the prize is under $500 as considered Class 1 Gambling in New Zealand. This is fully legal and no license is required. Section 22 defines Class 2 Gambling, which is mostly for organizations, charities, and certain businesses.
The objectives of the Gambling Act of 2003 are:
- Ensure that money from gambling benefits the community
- Facilitate community involvement in decisions about the provision of gambling
- Moderate the growth of gambling in new zealand.
- Minimise the negative effects caused by gambling including problem gambling
- Authorise some gambling and prohibit the rest
- Facilitate responsible gambling
- Ensure the fairness and integrity of games
- Limit opportunities for crime and dishonesty associated with gambling
Criteria for Determining Legitimacy of Online Casinos in New Zealand
It can be said that online casinos are legal in New Zealand until and unless they are placed and function in New Zealand itself. However, there are certain criteria which must be followed while determining are online casinos legal in New Zealand or not.
When it comes to online and internet gambling in New Zealand, DIA regulates all the casinos and ensures that they meet the criteria to be awarded as legal casinos in New Zealand. To regulate casinos or to check whether these online casinos legal in New Zealand, there are some points that must be considered in order to have an ensured and safe gambling experience.
These points of consideration include
- Reputation – The legitimacy of an online casino is significantly influenced by its reputation. The casino should have a good standing with both customers and industry insiders.
- Quality of software – The online casino’s software should be of the finest quality and free of bugs or other problems that might interfere with gaming.
- Licensing and regulations – Only when an online casino meets all the requirements of the 2003 Gambling Act and obtains the necessary MGA and eCOGRA licences can it be said to be legal in New Zealand.
- Security of financial transactions – There are a variety of payment options available including crypto, bitcoin, credit or debit cards, e-wallets like Skrill, Neteller, and many more which allow NZ players to deposit or withdraw their money at online casinos. To safeguard players’ financial information, online casinos should use secure payment methods. This includes storing confidential data securely and using encryption to safeguard transactions.
These are some of the criteria used by the Department of Internal Affairs (DIA) in New Zealand to determine the legitimacy of online casinos operating in the country.
Legal Games to play in New Zealand
Gambling is categorized into four classes, each of which requires a special license from the government in order to operate. Maximum prize amounts and turnovers vary from class to class. Players must be at least 20 years of age to enter casinos but only 18 to participate in sports gambling(including horse racing), scratch cards, and lotteries. Following are the legal games of gambling in New Zealand that are allowed to play for kiwis.
1. Horse racing
Up to 1920, bookmaking was declared illegal in New Zealand. From then until the introduction of the Totalizator Agency Board (TAB) in 1961, betting on racing was only available on-course. Today there are various TAB terminals in NZ to bet on sports and horse racing. The Totalizator Agency Board, commonly called the TAB, is a sports betting organization run by the New Zealand Racing Board.
2. Lotteries
The first “Art Union” was conducted in New Zealand by the Otago Art Society in December 1877. Both individuals and organizations subsequently used them as a way of raising funds. The first national lotteries were established in 1933. They were known as “Art Unions”. Prizes were relatively small, and in the early Art Unions, the prizes were quantities of alluvial gold. The low returns tempted many people to (illegally) purchase tickets in overseas lotteries such as the Australian Tattersall’s lottery. With Art Union sales declining, a review of lotteries was undertaken by the Second Labour Government in the late 1950s, and in 1961 the National Government introduced the Golden Kiwi lottery.
The New Zealand Lotteries Commission was established in 1987. Its original product, Lotto, has since been supplemented by Instant Kiwi scratch cards, daily Keno, and a Lotto variant named Big Wednesday. Lotto tickets became available online in 2000. In New Zealand, nearly all forms of gambling and betting are both legal and popular.
3. Pokies
According to Wikipedia introduced in 1987, slot machines, commonly known as “pokies”, are operated by charitable foundations and are mostly placed in hotels and bars. Maximum jackpots are regulated. In the year ending 30 June 2008, turnover was $10.096 billion, of which $9.158 billion was returned as prizes (player losses were $938 million). These figures represent a 9% decrease from the peak year of 2004. Pokies accounted for 46.1% of gambling expenditure (losses) in 2008. The year 30 June 2009 saw a further 5% fall in expenditure, to $889 million. There were 19,479 machines in 1,501 venues operated by 384 licensees, all of these figures being a decrease from 2008.
Since 1 July 2009, all machines must have Player Information Displays, which inform the gambler how long they have been playing, how much they have lost, and which encourage them to take breaks.
In May 2013 the Government announced it would allow casino SkyCity Auckland to install an additional 230 pokie machines and 40 new gambling tables, in exchange for a $402 million convention centre.
Casinos
There are Six casinos operating Gambling in New Zealand, the first of which opened in 1994:
- Dunedin Casino
- Christchurch Casino
- SkyCity Auckland
- SkyCity Hamilton
- SkyCity Queenstown
- Skycity Wharf Casino
Current Laws and Amendments for New Zealand’s Gambling Industry
- Gambling Amendment Act (No 2) 2015
- Gambling Amendment Act 2015
- Gambling Amendment Act 2005
- Gambling Act 2003 – the Gambling Act 2003 repeals the Casino Control Act 1990 and the Gaming and Lotteries Act 1977 and integrates them into a single Act. Racing continues to be administered under the Racing Act 2003 (with some exceptions, such as gaming machine operations in TABs and racing clubs)
Regulatory Agency Roles
The Department of Internal Affairs
- Administers gambling legislation
- Licenses gambling activities (except for casino gambling)
- Ensures compliance with the legislation
- Provides public information and education
- Funds and coordinates problem gambling services
- Recently finalised its Preventing and Minimising Gambling Harm, three-year Service Plan 2011-2013, and its six-year Strategic Plan 2011-2016.
- Considers and determines applications for casino operators’ licenses and the renewal of casino venue licenses
- Approves agreements and changes to agreements between casino operators and casino venue license holders
- Considers and deals with complaints about the way the Department of Internal Affairs has handled complaints in relation to Class 4 gambling
- Specifies, varies and revokes casino license conditions
- Advises Ministers and facilitates consultation on the setting of the problem gambling levy
- Considers and determines appeals against regulatory and licensing decisions made by the Department of Internal Affairs
Licensing & Regulation of Online Casinos in New Zealand
The Department of Internal Affairs (DIA), which again controls all gambling in New Zealand, states this clear as day. This is available on their page on prohibited gambling activity:
“The prohibition is on remote interactive gambling in New Zealand and therefore does not prohibit gambling conducted overseas. For example, it is not illegal for someone in New Zealand to participate in gambling over the Internet if that website is based overseas.”
New Zealand law does not allow companies and residents here to offer in-play betting, casino games, pokies (slots), housie (bingo), and online poker. Only the NZ lottery and TAB (for sports gambling and horse race betting) are available on the internet. However, there are many overseas websites such as www.bet365.com – which is based in the UK – that offer online betting in New Zealand.
Bet365 sports covers the entire world including New Zealand, and there is a casino, slots, poker, and bingo too. They even offer accounts in New Zealand Dollars (NZD). Bet365 is only one of many websites New Zealanders use to bet online. This is why gambling per capita is impossible to tally – the government cannot track overseas online betting which is very popular here.
The law is clear that as long as the player is of age, there are no laws prohibiting New Zealanders from playing at online casinos based elsewhere. That means you can enjoy all the top casino games such as keno, craps, poker, video poker, blackjack, baccarat, roulette, keno, and slots (pokies), any time you want.
If you are a Problem Gambler?
A Problem gambler is a person who is addicted to gambling. New Zealanders have many resources available to help overcome problem gambling. The Problem Gambling Foundation of New Zealand offers gambling addiction helplines, counselling, and support groups.
Those seeking help (or looking to help someone else) can also find a variety of educational materials as well as meeting times and locations on the organization’s site as well at pgfnz.org.nz. The Gambling Helpline New Zealand ( http://www.gamblinghelpline.co.nz ) is another great resource that offers similar services.
FAQs
Are Online Casinos legal in New Zealand?
Yes, online casinos are legal in NZ as far as they are not based inside New Zealand. International casinos which allow NZ players to register and enjoy are considered legal and safe to play.
What safety and security steps are in place at New Zealand’s online casinos?
Online Casinos in NZ allow users to access safe gambling in New Zealand by using safe payment options, encryptions, responsible gambling, licensing and much more.
Which are some popular and legal casinos in New Zealand?
Some of the popular legal online casinos in NZ are JackpotCity Casino, Ruby Fortune, Spin Palace, and Betway Casino.
Are my winnings from online gambling taxable in New Zealand?
Generally, no. Gambling winnings are not regarded as tax in New Zealand and are not taxed. However, if you play for a living, you might have to pay taxes on your earnings.
How do online casinos ensure fair play?
Random number generators (RNGs) are used by online casinos to decide game results. To make sure that they are impartial and fair, these RNGs are routinely audited by outside businesses. The strict rules governing game fairness and player security must also be followed by legally operating online casinos.