Labour Won't Say If It Would Block NZ Online Casino Licences

Labour Won't Say If It Would Block NZ Online Casino Licences

Labour has declined to say whether it would stop online casino licences being issued to 11 gambling firms early next year if it wins the New Zealand election. 

Its internal affairs spokesperson, Lemauga Lydia Sosene, said the party would take a closer look at where the work has landed if re-elected, according to The Post.

Labour's Position

Sosene said Labour agrees with the intent of regulating gambling but opposed the Government's Online Casino Gambling Act because it opens the door to offshore online casinos without a strong plan for harm reduction. 

Labour, the Green Party and Te Pāti Māori all opposed the legislation, which passed earlier this year. 

The Post noted that Labour did not appear to advocate outright prohibition rather than regulation.

The question matters because of how licences are decided. Under the Act, licence decisions are operational matters for the Secretary for Internal Affairs and require no further approval, so a new government would have to actively intervene to prevent them from being issued.

Where The Licensing Process Stands

Eleven entities won the right to apply for the 15 licences on offer in an auction that ran from September 29 to October 12, with the final price reaching NZ$15 million per licence. 

The Post said that could raise about NZ$225 million for the Crown. Winners include SkyCity and TAB New Zealand, along with overseas operators; Guernsey-based Baytree Interactive bid for three licences.

The Department of Internal Affairs (DIA) says winning the auction does not guarantee a licence. 

Each applicant must pass a detailed application and assessment. John Sneyd, the department's general manager of regulatory services, told The Post that licences are not expected to start being issued until early 2027. 

The DIA's provider guidance says licences will run for up to three years, with a possible renewal for a further five years, and that the full regime is expected to be operational in 2027.

Deadlines And Advertising

From December 1, 2026, providers that have not applied for a licence must stop offering online casino gambling in New Zealand. 

Those with an application under consideration may keep operating without advertising until a decision is made. 

Online casino advertising remains prohibited for now, a point we covered in our report on how the DIA is treating crypto deposits. 

The DIA will gain the power to block traffic to unlicensed operators by geo-blocking their sites, though The Post raised questions about how effective the blocks will be.

Critics Want A Rethink

Problem Gambling Foundation advocacy director Andree Froude said regulation provides some guardrails for a market New Zealanders already use, but that if regulated casinos are seen as trustworthy, more people could be drawn into harm. 

The foundation wants the Government to prohibit gambling advertising and strengthen consumer protections. Brooke van Velden, the Internal Affairs Minister who championed the reforms, is stepping down at the election.

What To Watch

The licensing timetable has already run longer than initially expected, leaving a window for a future government. 

Watch for further party policy statements before polling day, the first licence decisions in early 2027 and the December 1 cut-off. 

For players, the practical guide for now is the DIA's list of approved operators once it is published, and our overview of online casinos in New Zealand.

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