Jarrod True: “The new measures will likely deter most unlicensed operators from targeting New Zealand players”

Casino Guru News has sat down with Jarrod True, New Zealand’s leading expert on gambling law, to discuss the future legalization of online casinos in the country, addressing the chief legal challenges surrounding the process, and what the country may expect. With new legislation on the horizon, Jarrod offers expert insight into what a regulated iGaming landscape could look like and the roadblocks that may arise.

Q: Jarrod, New Zealand is on the cusp of a major change in how the country regulates its gambling industry with the introduction of a new iGaming bill. Do you see this as a positive development overall?

Overall, this is a very positive development. Online gambling is already prevalent in New Zealand, with New Zealanders spending approximately NZ$700 million annually. Regulating the market will lead to stronger consumer protections, more effective harm minimisation measures, and increased tax revenue for the government. The success of the initiative will ultimately depend on how the legislation is drafted. The regulated offering must remain attractive enough to discourage players from turning to unregulated providers, while still ensuring robust safeguards are in place.

Q: What are the core motivations behind the bill? Is the government trying to close tax gaps, promote responsible gambling, push back against the offshore market, or perhaps all of the above?

The primary motivation for the New Zealand Government is to increase tax revenue. However, there is also a strong emphasis on ensuring that New Zealanders who choose to gamble online do so in a safe and controlled environment. The government aims to ensure that operators adhere to strict harm minimisation protocols and operate transparently and fairly. Currently, many New Zealanders face significant challenges in retrieving winnings from offshore, unregulated providers

Q: Do you think New Zealand will follow the example of other jurisdictions that have regulated online gambling by enforcing strict advertising rules to boost consumer protection? How difficult would it be to implement and enforce such restrictions, considering the current media and consumer protection laws?

The Minister responsible for implementing the new online licensing system has clearly outlined her preferred approach to advertising, harm minimisation, and consumer protection. The proposed restrictions strike a fair balance. Paid endorsements by social media influencers, celebrities, and athletes will be prohibited. Additionally, 10% of each advertisement must be dedicated to harm minimisation messaging, and ads will be banned from airing between 6:00 a.m. and 9:30 p.m. However, bonuses and inducements will be permitted, and payment methods such as cryptocurrency, credit cards, and "buy now, pay later" schemes are likely to be accepted. There are no plans to restrict bet or prize amounts, and pre-commitment will remain voluntary. The proposed framework is designed to be clear, practical to implement, and enforceable by the regulator.

Q: What do you see as the key challenges the government may face in implementing the new regulatory framework?

The government is likely to face significant opposition from problem gambling treatment providers, many of whom are advocating for a complete ban on gambling advertising. These groups may view the proposed regulations as too lenient.

Additionally, existing land-based gambling providers, particularly the non-casino gaming machine sector, may push back. This sector is operated by non-profit entities that distribute all their profits to the community in grants—26,696 grants totalling over NZ$366 million were made in 2024 alone. The non-casino gaming machine sector is also subject to very strict regulations, including a maximum bet of NZ$2.50 and a jackpot cap of NZ$1,000, with minimal advertising and active player monitoring. In contrast, the new online casino system offers fewer restrictions and a more appealing product, which could divert gambling activity, and the gambling profits, away from community-focused operators and toward commercial offshore entities.

Q: At present, the bill proposes issuing up to 15 online casino licenses, while sports betting will remain relatively restricted. Do you believe this level of liberalization will be enough to deter offshore operators from targeting New Zealand players?

The new measures will likely deter most unlicensed operators from targeting New Zealand players. The legislation is extra-territorial, meaning it applies regardless of where the provider is based. The regulator will have the authority to impose fines of up to NZ$5 million on companies and fines of up to $300,000.00 on the individuals involved. Additionally, the ability to issue take-down notices will be a practical tool for preventing unlicensed providers from marketing to New Zealanders. The regulator will also gain new powers to collaborate and share information with international gambling authorities, further strengthening enforcement.

Q: We’ve seen several jurisdictions attempt to use international law to keep offshore operators out — Australia comes to mind. Do you think New Zealand will actively engage with international regulatory bodies to ensure overseas-licensed operators are blocked from targeting locals without a domestic license? And do you think this is realistically achievable?

The regulator will indeed have new powers to share information and collaborate with international gambling authorities, and these powers are expected to be exercised enthusiastically. However, the effectiveness of such cooperation remains to be seen and will likely vary depending on the jurisdiction involved.

Q: The government has signalled it will impose fines of up to NZ$5 million on companies offering gambling products without a local license. In your view, does New Zealand have the legal and practical tools to impose, and crucially, collect, such fines from foreign operators?

It would be relatively easy for the New Zealand regulator to impose and collect fines on from operators based in Commonwealth countries and other jurisdictions where reciprocal enforcement of judgments is possible. However, enforcement will be more challenging in countries where New Zealand judgments cannot be legally upheld.

Q: Do you anticipate any major roadblocks or political upsets in the coming months, or is the introduction of online casinos in New Zealand now more or less inevitable?

The government has made it abundantly clear that the online licensing system is a priority and will be implemented. While gambling-related issues in New Zealand typically generate significant public feedback and concern, the current administration is committed to implementing the system and is determined to see licensed providers operating from July 2026.

Image credit: Casino Guru News