Online Gambling in New Zealand: The Good and the Bad
Gambling has been rapidly rising in popularity not just in New Zealand but around the world. Much of this market growth is attributable to easier access, thanks to online gambling and casinos.
As online casino technology has continued to advance and infiltrate the gambling market, online gambling has become a hot topic.
In this article, we’ll explore the laws and current conversation surrounding online gambling in New Zealand, discussing the good, the bad, and the future.
Online Gambling in New Zealand
New Zealand casinos and other gambling establishments and activities in New Zealand are regulated by the government. However, as we will detail later, online gambling operates in a grey area.
Fortunately, the complicated legal details have not stopped New Zealanders from enjoying online gambling for years.
New Zealanders can currently participate in two types of online gambling. First are the government-backed online gambling activities, though options are minimal. Second are the offshore online casinos that players around the world enjoy.
For government-supported options, New Zealanders only have two choices. The first are sites run by the New Zealand Lottery Commission.
The second is TAB’s services, formerly the New Zealand Racing Board and the Racing Industry Transition Agency. These two organisations are fairly limited in what they can offer players.
New Zealanders also have access to offshore online casinos. These casinos operate outside New Zealand but offer online gambling activities to players in New Zealand and abroad. Offshore online casinos are not discouraged by the government, though strict regulations regarding advertising for these sites exist.
Is Online Gambling Legal in New Zealand?
New Zealand’s gambling laws only apply to establishments located in or activities that take place in New Zealand. As such, offshore casinos are out of their jurisdiction. However, this means private companies based in New Zealand are prohibited from offering online gambling.
The New Zealand government cannot do anything to prosecute offshore casinos or their New Zealand players. Instead, they’ve placed restrictions on these casinos’ ability to advertise to New Zealand residents. Currently, it is illegal for these casino operators to promote their sites and services in New Zealand.
New Zealanders who choose to gamble on these sites must be careful. Though there are many reputable offshore online casinos, some shadier sites exist. As the government does not regulate these offshore casinos, New Zealanders have no protection in terms of online security from scams.
Alternatively, New Zealanders can legally gamble from the two state-controlled gambling agencies, the New Zealand Lottery Commission and TAB. These agencies are limited in what they can offer New Zealanders.
Legal agencies can only allow certain games and have spending limits on online gambling offerings. Because of these limitations, many New Zealanders opt for trusted offshore casinos instead of legal ones.
The Future of Online Gambling in New Zealand
Though the current online gambling landscape is a bit murky, things are about to change. Like many other countries, New Zealand is currently revisiting many of its gambling laws, particularly those pertaining to online gambling.
The Gambling Act that currently regulates online gambling is from 2003. Online technologies have advanced a lot since then, so these laws don’t really address online gambling or casinos.
To address this issue, the government consulted the public back in August 2019. This consultation led to the government stating a need for updating online gambling laws and infrastructure for New Zealanders.
After the consultation, work began on a regulated system for online gambling. This decision was made to protect New Zealanders and bring money back into local communities. Essentially, this will lead to competition with the offshore online gambling market—a huge benefit to New Zealand gamblers.
How Does Online Gambling in New Zealand Stack Up Globally?
For many years, the laws around online gambling in New Zealand have been a bit of a grey area. This is a very similar situation to countries like Canada, which has also recently undergone an overhaul of online gambling laws.
New Zealand seemingly realises what countries like the UK have also discovered—that laws need to be updated. Similar to New Zealand, the UK hadn’t changed online gambling laws since 2004, before the age of smartphones.
Like the previously mentioned countries, New Zealand is heading in a positive direction regarding online gambling by recognising its popularity. Governments worldwide realise it is only beneficial to offer their residents safe, accessible, and fun online gambling options.
Pros and Cons of Online Gambling in New Zealand
There are certainly both positives and negatives regarding the current landscape of online gambling in New Zealand.
While there are many options for New Zealanders from offshore online casinos, there is always a slight risk in using these sites. However, players can reduce risk by researching and finding the safest, most reputable online casinos.
Another con to using offshore casinos over legal online gambling options is that the revenue from offshore casinos does not return to New Zealand. When New Zealanders gamble with legal sites, that money goes back into local communities.
However, government-supported efforts do not currently offer New Zealanders much variety or excitement. Fortunately, the government is working on fixing this.
Conclusion
There are many changes on the horizon for online gambling in New Zealand. In the meantime, New Zealanders can choose from many safe and reputable online casinos worldwide.
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