Gambling activities have long been a favorite pastime for many New Zealanders. Kiwis have access to various legal and regulated forms of gambling, including sports betting, wagering on horse races, slot machines, casino games, bingo, and lotteries. Bookmaking was illegal in the country between 1920 and 1961, but it was decriminalized after the state-owned Totalisator Agency Board (TAB) commenced operations.
Lotteries are among the oldest forms of gambling in the country. They have been available since the mid-19th century following the launch of the first official art unions. The name comes from the fact that locals could participate in draws for the chance to win a work of art in exchange for a nominal fee.
Slot machines (pokies) were introduced in the country in 1987 and quickly became the most popular form of gambling among locals. Today, they are available in designated gambling venues and in places like pubs and hotels. As for land-based casinos, there are six in New Zealand, located in Auckland, Hamilton, Queenstown, Christchurch, and Dunedin.
As of 2020, the country has introduced an amended legislative framework to tax offshore betting companies looking to offer their products and services to Kiwis. New Zealand has a well-developed gambling industry, with local operators generating revenue of NZ$2.4 billion for the fiscal year 2018. Without further ado, let’s take a closer look at the legislation in the country and its policies on gambling.
Laws That Govern the New Zealand Gambling Industry
The primary piece of legislation that governs land-based gambling in New Zealand is the Gambling Act of 2003. Remote gambling operations are outside the scope of this act. The Act distinguishes between four classes of legal betting activities, including lotteries, casino gaming, instant-win games such as scratch cards, and bingo.
Restrictions on Landbased Casinos
The Gambling Act of 2003Licenses for Casino Gambling and Their Requirements
Operators must meet certain suitability requirements before the New Zealand Gambling Commission grants them a permit to conduct casino gambling. The regulator evaluates the financial position of the applicants to verify whether they have been associated with bankruptcies or company liquidations in the past.
Applicants must also possess adequate financial resources to become eligible for permits. Once granted, the permits are not transferable according to Section 127 of the Gambling Act. In the case of land-based operators, a casino venue license is also necessary. It expires 25 years after gambling operations commence, after which there is an option for renewal.
Certain employees on the casino floor, like dealers, must also receive certificates of approval before they can conduct games or handle money and chips. The same goes for staff involved in the maintenance and repair of the gambling equipment in use.
Local laws require casino licensees to comply with specific hours of operation. Casino games must not be conducted on holidays like Christmas or Good Friday between 3 a.m. and 1 p.m. Land-based operators who violate this rule risk incurring fines of up to NZ$10,000.
Additionally, each gaming table should display the minimum and maximum allowed wagers and information about the payouts. Copies of the games’ rules should be available upon customer request. Only employees who have undergone adequate training can conduct casino games. Casino license holders are prohibited from operating gaming machines on their premises that accept bills with denominations exceeding NZ$20.
Additionally, they are bound by wagering information agreements that require them to contribute fees for the information’s usage. Above all, such offshore operators are charged point-of-consumption fees on all wagers they accept from bettors who are permanently based in the country. This applies to all wagers taken on sporting and racing competitions, whether they take place on local soil or abroad.
Since the regulations are new, the exact point-of-consumption fees are yet to be finalized. What is clear for the moment is that offshore betting operators whose revenue from bets made by New Zealanders is under NZ$60,000 for a given financial year will not have to pay point-of-consumption charges, as stated in section 51 (1)(a) and section 117 of the legislation.
Those who fail to comply with the provisions of the 2020 Racing Industry Act will be penalized. The sanctions range from NZ$20,000 to NZ$50,000, depending on whether the violator is an individual or a corporate entity. Some of the funds collected from consumption fees and penalties will go toward the prevention and reduction of gambling harm. The rest will be used to preserve the integrity of the local racing and sports betting sectors.
Addiction Prevention and Responsible Gambling in New Zealand
Some of the primary purposes of the 2003 Gambling Act are to control the growth of the local gambling industry, prevent addiction, and minimize the harms associated with excessive gambling participation. These goals are achieved by imposing various restrictions in line with the Gambling (Harm Prevention and Minimisation) Regulations.
Restrictions Over Gaming machines
Prevention and Treatment of Gambling AddictionLegal Gambling Age in New Zealand
Participation in lottery-style games like Keno, Bulls Eye, Lotto, and Play 3 comes with no age restrictions in New Zealand. However, if an individual who is under 18 years old wins a sum that exceeds NZ$1,000, their parents or legal guardians must sign a special acknowledgment form before the underage winner can redeem the prize.
Access to instant-win games and lotteries with frequent draws is restricted to participants who are at least 18 years old. Underage participation in such activities is a violation of New Zealand’s Gambling Act of 2003, and so is purchasing instant-win tickets on behalf of minors.
As for sports betting, young Kiwis must be 18 years old or older to wager on races and sporting competitions at TAB NZ. Those who violate this rule risk fines of up to NZ$500. The fines are higher, at NZ$1,000, for individuals of legal age who place bets on behalf of minors.
Casino gaming floors are off-limits to Kiwis who are under 20 years old. The sanction for violation is a fine of up to NZ$500. With that said, some of the biggest land-based operators in New Zealand enforce stricter policies by issuing trespassing orders against any minor who accesses the gaming area. Such individuals will be prohibited from returning to the casino for two years. This rule applies even if the violator reaches the legal casino gambling age (20+) during that two-year period.
Kiwis can play gaming machines (pokies) outside casinos (e.g., in bars and restaurants) if they are 18 years old or above. However, if the machine operator has valid reasons to suspect a patron is underage, they have the right to deny payment of winnings. If the person provides proof of identity and age within seven days, they will be able to redeem their prize.
Gambling Advertisement Policies in New Zealand
The marketing of gambling products and services is overseen by the self-regulatory Advertising Standards Authority of New Zealand (ASA). This organization sets the standards for responsible marketing in the country with a focus on social responsibility. It released a new set of rules in the spring of 2019 via the Gambling Advertising Code, which came into effect in August of the same year.
Under the New Policies
Gambling-Related AdsWho Regulates New Zealand’s Gambling Industry
Gambling activities in New Zealand fall within the remit of several agencies, starting with the primary regulator, the Department of Internal Affairs. This entity is responsible for gambling licensing and ensuring compliance with the provisions of the 2003 Gambling Act. It launches frequent consultations on how to increase compliance with local legislation. The Department also conducts regular audits of gaming machines.
The local government has tasked the Ministry of Health with creating and implementing strategies to combat gambling addiction. The strategies must be reviewed every three years. Additionally, the Ministry of Health collects funding from gambling duties and uses it for the treatment and prevention of problem gambling.
The New Zealand Gambling Commission is an independent regulatory body that was launched under the 2003 Gambling Act. It reviews casino permit applications and issues licenses. It has the power to revoke gambling license conditions and provide advice to the Ministry of Internal Affairs regarding problem gambling duties.
TAB New Zealand was established after the passage of the Racing Industry Act of 2020. The main objectives of this statutory body include facilitating and promoting the growth of the local race and sports betting industry. The revenue generated by TAB NZ goes toward the local betting sector, with approximately NZ$170 million being poured back into racing and sports annually.
Closing Thoughts
New Zealand has an adequately regulated land-based gaming industry under the 2003 Gambling Act. The country presently lacks a licensing regime for the issuance of permits for online casino games. However, it has taken a step in this direction with the introduction of the 2020 Racing Industry Act, which imposes point-of-consumption levies on remote betting operators.
Virtual betting cannot be provided legally within the country, with exceptions made only for authorized entities like TAB NZ and Lotto NZ. Kiwis can participate in online gambling via overseas websites without fear of prosecution.