It is estimated that more than NZ$381m ($244m) has been bet through offshore online gambling operators in 2018-2019.
The New Zealand government conducted a thorough review of the Gambling Act in 2018-2019 to address the growing influence of online gambling, primarily through offshore websites.
This review resulted in several critical decisions to update the law to regulate digital gambling better and safeguard consumers from potential risks.
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This includes online sportsbooks and casinos. This shows that online gambling is on the rise in NZ as Kiwis are fond of playing poker with their mobiles, even on the go.
But many things cause concern for the government.
The government of New Zealand does not want to create problem gamblers in the country and is reviewing the New Zealand 2003 Gambling Act to make it more current in this digital age.
Four classes of gambling
Before discussing the potential reforms in the NZ 2003 Gambling Act, it is helpful to understand the four main classes of gambling mentioned in the 2003 act.
| Aspect | Class 1 Gambling | Class 2 Gambling | Class 3 Gambling | Class 4 Gambling |
|---|---|---|---|---|
| Purpose of Gambling | Rewards winners or funds authorized purposes | Funds authorized purposes | Funds authorized purposes | Funds authorized purposes |
| Maximum Prizes | Up to $500 total per session | Up to $5,000 total per session | Exceeds $5,000 total per session | Typically involves gaming machines (pokies) |
| Maximum Turnover | Up to $500 per session | Up to $25,000 per session | Not specified | Not specified |
| Sessions Per Week | Multiple sessions are allowed if societies | One session per week for multiple-game sessions | Not specified | Not specified |
| Game Rules Requirement | Required | Required | Required | Required |
| Regulation Compliance | Must comply with all regulations | Must comply with all regulations | Must comply with all regulations | Must comply with all regulations |
| Involvement of Gaming Machines | It does not involve gaming machines | It does not involve gaming machines | Does not involve gaming machines | Typically involves gaming machines (pokies) |
| Commission to Organizers | No commissions are allowed except for specific roles | No commissions allowed except for specific roles | Only licensed promoters may receive commissions | Venue operators may receive regulated commissions |
| Secretary’s Categorization | Not categorized as another class | Not categorized as another class | Categorized as Class 3 gambling | Categorized as Class 4 gambling or involves gaming machines |
In New Zealand, land-based casinos typically adopt Class 4 Gambling. It includes the involvement of gaming machines, often called pokies, in casino places.
These machines are regulated to ensure they operate responsibly and contribute to community causes as the law requires.
Different reforms and The New Zealand 2003 Gambling Act
The Department of Internal Affairs NZ will review the New Zealand 2003 Gambling Act and make reforms. Officials are proposing four different potential reform options.
Three of the four options would grant New Zealanders access to more gambling products. The final option proposes keeping things the way they are currently.
1. Tab and Lotto NZ To Offer Online Casinos
TAB and Lotto are the only legal online gambling operators currently operating in New Zealand.
Therefore, to try and get New Zealanders to stop using offshore gambling platforms, one of the reforms would allow these two providers to add more gambling options, such as an online casino.
As more and more states across the world are legalizing online gambling. The worldwide market for the activity is set to double from 2017 to 2024.
The two operators in New Zealand have been trying to keep up with demand from gamblers.
This saw them introduce Texas Hold’em poker, online scratchies in January, and more extensive live streaming options.
TAB’s digital platforms account for 60% of its total betting turnover. Their mobile platform is proliferating, and its popularity has increased by 59% in the latest period.
They have been rolling out extensive advertising campaigns to try and attract new customers.
According to the TAB annual report, this led to nearly 80,000 first-time bettors signing up for accounts.
While there would likely be voluntary compliance for this option, according to the DIA, it would be good for New Zealanders as the competition would give them access to better odds and promotions.
2. More Licenses to NZ Operators
Another reform would see more casino licenses being handed out to gambling operators in New Zealand.
They will also look at increasing awareness about problem gambling, as well as committing more funds towards problem gambling treatment programs.
Instead of an outright ban on domestic providers offering online casino games, a licensing system could be established.
This would allow reputable operators to apply for licenses, ensuring they meet certain criteria for fair play, responsible gambling practices, and consumer protection.
At the start of 2019, the New Zealand government committed an additional NZ$60m ($39m) to fund problem gambling services.
For a relatively small country, they spend a lot more per capita on problem gambling than most major nations.
3. Offshore Casinos To Get License From NZ
The third expansion proposal would see international operators being able to apply for a license in New Zealand.
Also, one of the options is to ban or heavily restrict the way people use credit cards to add funds to online gambling accounts.
The government will also look into banning platforms from being accessed through public wifi.
The authorities are also trying their best to stop residents from accessing illegal offshore online gambling platforms.
While New Zealanders can legally use offshore platforms to gamble, some of these platforms have New Zealand domains, which is not legal.
The authorities sent requests to 13 operators to close their New Zealand website addresses with immediate effect.
4. Problem Gambling Protections
In addition to the above reforms, the New Zealand government proposes to protect the country’s problem gamblers.
According to the Ministry of Health, there are low numbers of gamblers who are calling them for help with online gambling.
However, a spokesperson for the Problem Gambling Foundation (PGF) believes this is because it is still a relatively new sector in New Zealand.
The PGF spokesperson said: “The very nature of online gambling is hidden – you can carry around a betting agency in your pocket. You can gamble in bed, at work, or on the toilet.
” While the Internal Affairs department in New Zealand is seeking to potentially expand the scope of the country’s two gambling operators, they are also making some strides to protect problem gamblers.
According to the Problem Gambling Foundation, this is just scratching the surface. They support the credit card restrictions but are still calling for tougher measures.
The last amendment of Problem Gambling under the 2003 Gambling Act took place in March 2015 and is expected to be updated again this year.
To support this, the Gambling (Harm Prevention and Minimization) Regulations, according to the last amendment is:
- Restrictions on venues suitable for operating gaming machines
- No automated teller machines (ATMs) are allowed in the gambling area of a venue
- Maximum stake and prize limits for gaming machines
- A feature on each gaming machine that interrupts play at intervals of not more than 30 minutes of continuous play (the messages display information about the duration of play, amount of money spent, and net wins or losses)
- Restrictions on jackpot branding and advertising
- Requirement to give venue staff problem gambling awareness training
- Requirement to make information about problem gambling available to patrons
- The ability for venue staff to issue exclusion orders to patrons
- Gamblers can also request a Multi Venue Exclusion if they want to be excluded from more than one gambling venue.
It’s important to remember that problem gambling protections are likely to be a continuing area of focus for the government.
This means any reforms aimed at increasing online casino accessibility would likely be accompanied by stricter measures to mitigate risks, such as:
- Stricter age verification and identity checks: Ensuring only those of legal gambling age can access online casinos.
- Deposit limits and self-exclusion schemes: Regulations allow users to set deposit limits and self-exclude from online gambling platforms for a certain period.
Review of Gambling Act in Covid-19
During COVID-19, some lottery operators in New Zealand had trouble raising funds in person. To help them, the law temporarily allows these operators to run their lotteries online.
- Purpose: This change allows gambling operators with a class 3 license for lotteries to conduct these lotteries online (remote interactive gambling) for a specified period.
- Period: The change is effective from the start date until October 31, 2024.
- What’s Different: Normally, only certain types of gambling can be done online. This change adds lotteries to the list during COVID-19.
- After October 31, 2024, The rules will return to how they were before.
- Impact: This change won’t affect how online gambling was defined before or what happened during this time.
This helps lottery operators adapt to COVID-19 challenges by allowing them to use the Internet for fundraising until October 2024.
Finally, it is hoped that the above updates and reforms will help Kiwi punters regulate their pokies play to some extent and save themselves from the losses they experience while playing pokies or the addiction they get into playing more.
However, these are just some potential reforms that may be included in the official Gambling Act 2003 in the next review.
FAQs
Why is the New Zealand government reviewing the Gambling Act?
The government is concerned about the rise in online gambling, mainly through offshore platforms.
The review aims to update the legislation to address issues such as problem gambling, offshore operators, and the changing landscape of digital gambling.
What potential reforms are being considered for the Gambling Act?
Four potential reforms are being considered, including granting TAB and Lotto NZ the ability to offer online casinos, issuing more casino licenses to New Zealand operators, allowing international operators to apply for licenses, and implementing measures to protect problem gamblers.
How does the first reform affect online gambling in New Zealand?
The first reform proposes allowing TAB and Lotto NZ to offer online casinos, providing more gambling options to New Zealanders and potentially reducing the use of offshore gambling platforms.
What is the second reform regarding casino licenses?
The second reform considers issuing more casino licenses to New Zealand operators, increasing awareness about problem gambling and allocating funds to treatment programs.
How does the third reform involve offshore casinos?
The third reform suggests allowing international operators to apply for a license in New Zealand.
Additionally, measures may be taken to restrict the use of credit cards for online gambling and block specific platforms on public wifi.
How is the government addressing problem gambling concerns?
The government is taking steps to protect problem gamblers by considering measures such as credit card restrictions, banning specific platforms from public wifi, and implementing problem gambling protections, despite potential expansions in the gambling sector.
When was the last amendment to the Problem Gambling regulations under the Gambling Act?
The last amendment to the Problem Gambling regulations under the 2003 Gambling Act occurred in March 2015, and further updates are expected this year to address evolving challenges in the gambling landscape.