How International Online Casinos Operate in New Zealand Using An Escape Route

Very few regulatory frameworks around the world have gained so much attention as laws in the field of iGaming. With countries from predominantly Europe and North America having regulated online gambling, South America has also shown to loosen regulation on online betting in recent years with countries like Argentina, Colombia, Mexico and Brazil legalising one or multiple forms of online betting.

Online gambling was already legalised in Australia in 2001 with international online casino brands now widely available in our neighbouring country. The same holds true for our country to some extent, but different from regulated markets these brands operate in a grey area as they are not banned from offering their products as long as they operate offshore.

This article explores how international online casinos operate their platforms in New Zealand through a complex regulatory escape route. We’ll tell you everything about this workaround and why it is important to pay close attention to consumers in New Zealand.

Understanding New Zealand’s Gambling Laws

The Gambling Act of 2003 officially prohibits online gaming in New Zealand. Whereas Australia legalised iGaming in 2001, the online casino industry wasn’t a fraction of the billion dollar industry it represents today. From a general perspective, the regulation’s primary focus is to ensure the control and minimisation of harm from gambling related activities. Current laws allow only state-owned enterprises to provide gambling services to Kiwis.

The act restricts all online operations within the border of the country, except for the government-owned companies. Currently this offer is limited to Lotto NZ and TAB NZ with the latter offering sports betting. Interestingly, under this law, it’s not illegal for Kiwis to access and use offshore online gambling products. This is why our country’s biggest land-based casino operator, SkyCity, uses an escape route and holds its licence in Malta.

The push for modernised gambling legislation has gained momentum since 2019 and has been reignited recently. The DIA pointed out that the internet was still evolving and smartphones were nonexistent when the Gambling Act 2003 was written. “Legislators couldn’t predict the explosive growth of online gambling over the past 16 years.”

Since 2001, 21 European countries have implemented online gambling regulations, with nine doing so since 2016. In the U.S., nearly half the states have enacted online betting laws since 2018. Canada is following suit, with an increasing number of provinces embracing iGaming. Casinos focussing on these markets have increasingly applied for local gambling licences and now adhere to local laws instead of using international permits.

Operating from Malta or Curaçao

In 2019, SkyCity launched its online casino following the same approach as many other brands around the world. Originally known for their numerous land-based casinos, the domestic operator recognised a rising demand for online gaming solutions amongst their customers. However, they faced a significant hurdle: New Zealand’s strict prohibition on online gambling. To move around this, it partnered with Malta’s Gaming Innovation Group, officialising the brand’s offshore status whilst it maintained its focus on NZ.

Ever since the Malta Gaming Authority (MGA) was founded in 2001, a lot of international casino brands have moved to Malta thanks to its well-established reputation for online gambling, strong regulatory framework, and favourable tax environment. The licence issued by the MGA is considered as one of the most reputable gambling authorities in the world with many brands moving their attention to the Mediterranean island as the licence is often used internationally. Whilst SkyCity has kept its main focus on New Zealand, most brands using the escape route to Malta tend to follow an international approach.

Ongoing Political Debate

This escape route used by many iGaming brands has caused ongoing political debate in New Zealand. Different policymakers in our country continue to propose updating the Gambling Act in order to close this gap with calls having become stronger since 2019. The main argument is that the current law is outdated when seen from today’s reality, which has increasingly moved towards online gambling instead of playing at pubs and brick and mortar casinos.

It has also been discussed that New Zealand could benefit financially from a regulated and taxed gaming industry for both domestic and international gambling operators. From a responsible gaming perspective working with a regulatory framework also ensures that Kiwis can be protected more effectively against the risks associated with gambling. Policy makers have strongly urged better controls and support for problem gambling.

How To Choose An International Casino Brand?

With international online casinos being widely accessible in New Zealand none are operated within our country. This means that gambling operators are not officially adhering to local laws as these are inexistent. For gambling enthusiasts in New Zealand it is therefore important to choose the right gambling platform as most punters want to play with real money.

1. Let KiwiGambler Guide You with Casino Reviews: We’ve taken the guesswork out of finding some of the vert best online casino brands by preselecting the best ones for you. Our curated selections are tailored to the NZ market, ensuring that casino bonuses are valid, games are accessible, and banking can be done in New Zealand Dollars.
2. Stick to Licensed Casinos: We exclusively list casino websites that hold international licences and cater to NZ users. Licensed casinos undergo regular audits by independent authorities dedicated to maintaining adequate quality standards. Any brand that fails to comply with these stringent regulations risks losing its licence. Although not regulated in our own country, all European gambling authorities do a great job in regulating companies that offer online gambling products.
3. Explore the Bonuses: Most online casinos offer an enticing welcome package upon registration. Ideally, this shouldn’t be the only promotion available on a gambling site as we believe that existing customers should be valued as much as new users. Make sure to review the casino’s promotional offers and get the most out of your initial deposits accordingly.
4. Understand the Bonus Terms: Always take the time to read and comprehend the bonus terms that come with the casino’s promotions. These terms dictate the conditions of your bonuses and can significantly impact your overall gaming experience. By understanding them, you can make informed decisions and maximise your benefits.
5. Play Responsibly: It is paramount to always play responsibly. This means that you are advised to set your limits as soon as you sign up at a new gambling site. Your account should normally give you different options to set limits such as time limits, loss limits and deposit limits. We encourage you to play wisely and manage your funds carefully.

As one of the first iGaming news platforms of the country, KiwiGambler holds strong hopes that online casinos will be legalised in New Zealand. In the meantime we are happy to help you find casinos that are considered safe and trustworthy in most European countries.