Gambling System Update

3 December 2025

Kia ora,

2025 is coming to a close, and I find myself reflecting on the past year. 

A definite highlight for me was attending the International Association of Gaming Regulators (IAGR) conference in Toronto this October. It was an incredible and insightful opportunity to connect with regulators from around the world and explore the shared challenges we face in overseeing online gambling. It’s clearer than ever to me that effective regulation of online casinos is a global effort, and one that relies on strong international partnerships, open dialogue, and a commitment to continuous learning. 

I came away from the conference with a real sense of international momentum, especially around international work groups set up specifically to tackle illegal online gambling and the black market. It was so inspiring to see the generosity and openness of our overseas counterparts, and we’re looking forward to continuing to build these relationships. 

In this final issue for 2025, we look at the increased media coverage on the impact of illegal gambling advertising. We also share a recent Gambling Commission decision, some information on the changes to the sale and supply of alcohol laws, provide an update on the online gambling implementation and highlight some important dates to be aware of during the holiday period.   

Kia hari, kia koa i te wā whakatā – Happy Holidays and see you in 2026! 

Ngā mihi nui,  
Vicki Scott 
Gambling Director 

Illegal Gambling Advertising back in the spotlight 

Under the Gambling Act 2003, it is illegal to promote an offshore gambling operator in New Zealand.  

Following our latest edition, we have seen a further increase in media coverage around the topic of gambling advertising – with a particular focus on the effects of gambling companies targeting young people.  

You may have seen coverage on Stuff.co.nz from Paddy Gower, who spoke to Otago University students about how the persistent targeted advertising fuels gambling addiction among young people. Radio New Zealand also broadcast a segment about the role that social media influencers play in promoting gambling illegally through sponsored posts.  

Over the past few months, we’ve been responding to these issues through a range of enforcement actions. Since August we have issued warning letters and infringement notices to both offshore casinos and local social media influencers. We have also worked with social media platforms to have several social media pages taken down for illegal gambling promotion. We will be factoring in breaches by overseas casinos when considering their suitability to hold an online casino licence under the Online Casino Gambling Bill.  

Once the Bill is in force, licensed operators will be permitted to advertise, with certain restrictions, to people in New Zealand. All other advertising of online casinos will be banned and anyone in breach may be subject to enforcement action such as fines of up to $5 million or take down notices.  

We are currently engaging with social media and advertising platforms to ensure they are prepared to support compliance, including the removal of advertisements by unlicensed providers.  

While it is encouraging to see that the negative impacts of illegal gambling promotion are gaining more attention and awareness, the issue remains a persistent one. We appreciate everyone who has reported instances of illegal advertising to our team this year and will keep working to enforce the law in 2026 and beyond.   

Online casino gambling update

In late October, Minister of Internal Affairs - Hon Brooke van Velden announced the introduction of community funding returns through the Online Casino Gambling Bill and recently released the Cabinet paper and associated materials regarding this decision.  

The proposed change increases the Offshore Gambling Duty from 12 percent to 16 percent with the additional 4 percent ringfenced specifically for community returns.  

You will see from the information in the proactive release that there has been an update to the timeline for the licensing process. Under the proposed Bill, the new online casino licences will start on 1 December 2026. 

In relation to the new timeframe, we can also confirm that the detailed regulations will be finalised by mid-2026. It is our intention to give the sector time with these finalised regulations before running the licensing process. 

If you would like to be kept up-to-date about the online casino gambling implementation programme, please register your interest to receive updates. We hope to provide everyone who has registered interest another update before the end of the month, that will include detailed information on the regulatory decisions taken.  

Changes to Sale and Supply of Alcohol Act

Changes have been proposed to the Sale and Supply of Alcohol Act 2012, with a focus on fairness and practicality without compromising public safety. 

Relevant to our class 4 gambling sector, the proposed changes include: 

• allowing licence applicants (such as class 4 venues) a right of reply to objectors
• only allowing objections to applications from local communities. 

Territorial authorities will still retain all current powers to regulate alcohol within their communities through Local Alcohol Policies and District Licensing Committees. 

Illegal Poker activity under investigation

The Department is continuing to respond to a rise in illegal poker activity, particularly in urban centres such as Auckland. These operations often involve poker games promoted online and held without authorisation in public venues, breaching the Gambling Act 2003. 

Recent investigations have disrupted several venues, with equipment seized and further enquiries ongoing. These games are often structured to appear legitimate but operate outside the law, posing risks to participants, organisers and the integrity of the New Zealand gambling system. 

Alongside enforcement, the Department is preparing targeted guidance to support public understanding of what makes poker legal or illegal.  

Further updates will be shared as the campaign progresses. 

Focus on Class 4 enforcement and prosecution action

The Gambling Commission recently issued a decision involving a controversial Class 4 venue in Auckland. On 30 November the Edinburgh Castle (a Bluesky Trust venue in Mt Eden) lost its Class 4 gambling licence, meaning that the venue’s gaming machines must be switched off.  

The Gambling Commission decision follows an appeal from Bluesky Trust after the Secretary for Internal Affairs cancelled the bar’s Class 4 licence in May. The Gambling Commission agreed with the Secretary that the primary purpose of the venue (which had previously lost its liquor licence) was to operate gaming machines, in breach of the Act.   

This case serves as a good reminder that the primary purpose of all class 4 venues must be something other than gambling, and must be able to be characterised as entertainment, recreation or leisure focused on persons 18 years and over (for example, a pub).  

Regulatory Services General Manager John Sneyd was interviewed by reporter Steve Kilgallon about the decision. Read the story on The Post website  

In other news, two individuals pled guilty to misusing class 4 grant funds in the Napier District Court recently. Both were charged with dishonestly offences under the Crimes Act 1961 for their role in misappropriating around $140,000 of Class 4 grant funds. 

The individuals currently have name suppression and are due to be sentenced in March 2026.  

Financial compliance guidance for Class 4

We are actively developing a number of guides to help Class 4 entities meet their financial compliance requirements, and expect to publish these over the coming months.  

Once published, these guides will be freely available on the DIA website. Keep an eye on the site, and future editions of Gambling System Update for more.

Seasonal banking dates

With the holidays fast approaching, we wanted to give you a brief reminder on GMP banking and DIA closedown dates. 

The due dates for GMP banking over the upcoming 2025-2026 holiday period are:  

• Tuesday 6 January 2026 for the week ending Sunday 21 December 2025 
• Friday 9 January 2026 for the week ending Sunday 28 December 2025 
• Friday 9 January 2026 for the week ending Sunday 4 January 2026 

DIA offices will be closed from midday Wednesday 24 December 2025, through to Wednesday 7 January 2026.

Technical EMS support will be available through the usual channels however.