New Zealand is looking to introduce a licencing framework for online casinos in 2025 and the move could be hugely beneficial to operators in the United Kingdom.
The Kiwis have been slow to embrace online gambling, but the new system will introduce solid customer protection measures and allow the government to garner taxation revenue.
Several UK companies have expressed interest in jumping on the bandwagon in New Zealand and their regulatory knowledge should stand them in good stead.
New Zealand's Baby Steps Towards Regulation
The New Zealand government has announced plans to auction 15 online casino licences, and the plan is for operations to start in April 2026.
The move will give Kiwi players greater access to safe, secure and fully regulated NZ online casino real money platforms. The legislative process will begin in April this year.
The government has made it clear to stakeholders that the goal is to create a safer environment for players by promoting responsible gambling initiatives.
Betway, 888 and bet365 are among the operators who want to acquire a new licence. Their extensive experience in regulated environments elsewhere gives them a useful edge over other operators.
The UK sets benchmark for other regions when it comes to gambling regulations. Its Gambling Commission sets the standard for responsible gaming, player protection and accountability.
They have been proactively tackling gambling-related harm, setting a new statutory levy for operators. The levy should be in place by April and requires operators with gross profits of over £500,000 to contribute a percentage of their revenues.
Around £90-£100 million will be raised from this initiative and allocated to support programmes. Operators must continue with all the existing initiatives until the levy is implemented in April.
Under the stringent gambling laws in the UK, the aforementioned operators have developed advanced tools for protecting players.
These include pending limits and real-time monitoring to detect harmful behaviour. This expertise will be useful as New Zealand curates its regulatory system.
A Natural Fit for New Zealand's Market
UK operators are the ideal candidates for New Zealand's licencing process, bringing their wealth of gaming knowledge and proven strategies to the table.
They know how to adhere to strict advertising restrictions and implement age verification measures, elements that will appeal to the authorities in New Zealand.
The companies in question have a global reach and established technology solutions, positioning them as the perfect contenders for the New Zealand market.
The UK's licencing and regulatory model can be a blueprint for New Zealand. The government will likely leverage this expertise to establish initiatives that help funnel gambling revenues into social programmes, research and treatment facilities.
The partnership could accelerate the establishment of harm-reduction strategies that help balance industry growth and consumer protection.
Challenges & Opportunities Abound in New Zealand
Many UK operators will be tempted to blindly storm into the New Zealand market due to the opportunities on offer, but there are several challenges to navigate.
The auctioning process is expected to be extremely competitive and domestic operators such as SkyCity Holdings will be in the mix with their home-field advantage.
New Zealand is vastly different from the UK culturally. Local tastes differ, and UK companies must add context to their marketing strategies and offerings.
However, these challenges are also an opportunity for innovation. UK operators can differentiate themselves by developing technologies such as artificial intelligence powered responsible gaming tools and improved customer experiences.
Another way they can improve their chances of securing a gambling licence is by collaborating with local stakeholders to build long-term partnerships. UK gambling operators venturing into the New Zealand market is potentially a win-win situation for both sides of the equation.
New Zealand has the chance to partner with experienced companies known for implementing the best global practices, ensuring a safer and more transparent gambling sector.
UK companies could become mainstays in this emerging market, bolstering their standing as leaders in responsible gaming. They can help shape the future of gambling in New Zealand, expanding their global footprint while contributing towards a safer and sustainable gambling industry.
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