With an annual revenue growth rate of almost 8%, New Zealand’s online casino industry is estimated to be worth in excess of $20 million. So, why is the country proving so popular for new casino websites?
On paper, New Zealand’s online gaming legislation, last updated way back in 2003, might appear restrictive. Domestically, only TAB and Lotto NZ are permitted to offer online gambling to Kiwi residents. However, the country actually has one of the most relaxed stances when it comes to online participation in gambling, with consumers free to visit offshore operators and choose a new casino to play at, as long as it’s open to NZ players.
Despite talk of changes to the current law as far back as 2018, such sites are still able to advertise freely and welcome players from the country.
SkyCity and Christchurch Leading NZ Casino Charge
This means more and more online casino sites are starting to target players in New Zealand, with prominent brands SkyCity Casino and Christchurch Casino leaning into their Kiwi heritage – by association with the land-based casino and major South Island city, respectively – despite being licensed by the Malta Gaming Authority and operated by established international brands.
Targeted welcome offers for NZ players at new casino websites are commonplace, while ‘pokies’ remains a popular term in Kiwi parlance – speaking to the enduring popularity of slot games despite physical machines declining over the past two decades.
State Monopoly Performing Below Par Despite Increased Revenues
A study into the casinos trend in New Zealand shows that online gaming revenue continues to grow overall despite the country’s betting monopoly, TAB, performing below budget multiple years in a row. This is a prime indicator of the popularity and widespread appeal of offshore casino operators.
Meanwhile, Google Trends data suggests that ‘casino’-related queries are continuing to increase year over year, witnessing a five-year peak in recent months. With this in mind, many expect that it’s a matter of when, rather than if, New Zealand’s government moves towards legislative reform.
As part of any changes, we can likely expect a licensing system that requires both domestic and off-shore brands to acquire NZ-specific certification, bringing parity and fairness to the market. Self-exclusion mechanisms and responsible gambling are likely to be high on the agenda. So too, of course, will be licensing fees and taxation – authorities must feel that they too can benefit from increased gaming interest.
Is Gambling Regulation the Answer for New Zealand?
As we’ve seen in the US post-PASPA, regulation when done correctly can lead to greater protection for players, a more positive perception of the industry overall, and ultimately, a fairer and more competitive landscape across the board for brands and consumers alike.
Therefore, it wouldn’t be surprising to see many more NZ-based companies looking to acquire a slice of the action in the coming years – accelerating the positive revenue and sentiment trends already witnessed and cementing the country as a true hotbed for new online casinos.
