New Zealand is set to introduce a new market framework, which will take effect in February 2026. A key aspect of this new framework is allowing online casino operators to advertise, a first for the country.
As part of this initiative, the government plans to auction 15 online casino gambling licences, which are expected to be predominantly acquired by foreign-owned multinational companies.
For Brooke van Velden, the Internal Affairs Minister and Act Party representative responsible for online gambling regulation, allowing advertising is essential to the new market model so that people are aware that the product exists, which will make the licences more attractive to bidders.
“How do we ensure that it’s actually profitable enough or beneficial enough for someone to even want to bid for the licence? And we know that that comes from people being able to know that your product even exists,” Van Velden said during a conversation with RNZ.
“We’re saying yes, we would allow advertising.”
The Department of Internal Affairs (DIA) briefed Minister Brooke van Velden, stating that allowing advertising would “support tax collection” and decrease harm by directing gamblers to licenced providers. The DIA also noted that allowing advertising and legitimising operators through licencing might unintentionally encourage more gambling.
However, it also said, “Continuing the current advertising ban would substantially undermine the policy design, lessen the value and attractiveness of licences, and not enable channelling to regulated, more reputable operators.”
Internal Affairs Minister Brooke van Velden said, “This is not intended to increase the amount of gambling New Zealanders do but to ensure operators meet requirements for consumer protection and harm minimisation, as well as paying tax.”
Problem Gambling Concerns Arise
According to Andree Froude, spokesperson for the Problem Gambling Foundation, online casinos should be prohibited from advertising as “it feeds into the normalisation of gambling.”
“It also opens up the doorway for inducements, which we believe also should be prohibited,” Froude said.
Inducements are incentives offered to attract gambling customers to bet. These can take in various forms, such as sign-up offers, bonus bets, free spins, and topping up gambler accounts.
Froude said, “It does encourage people to gamble in a more risky way, and it certainly does encourage people to spend more. So inducements are really concerning.”
Meanwhile, Martin Cheer, managing director of pokies operator Pub Charity Ltd, warned that New Zealanders should brace themselves for a surge in advertising from online casino operators.
“I think people need to be prepared for the bombardment of advertising,” Cheer remarked.
“There’s enough being generated by Entain and the TAB and Lotto at the moment. You imagine adding in 15 others who’ve got nothing else to spend their money on but promotion and advertising, trying to win over and grow their customer base.”