A Landmark Legal Shift Reshapes New Zealand’s Betting Market
New Zealand’s Department of Internal Affairs (DIA) has formally enforced a sweeping ban on offshore online sports and racing betting, granting Tab NZ exclusive rights to operate such services nationwide. The amended Racing Industry Act 2020, which took effect on 28 June 2025, marks the most significant overhaul of New Zealand’s gambling legislation in over 20 years.
Under the new law, only Tab NZ is legally authorised to offer and promote online sports and racing betting to individuals residing in New Zealand. All offshore gambling operators must cease operations immediately or face regulatory action.
Enforcement and Compliance: A Clear Message to Offshore Operators
The DIA, tasked with implementing and enforcing gambling policy, has already begun contacting unlicensed operators to notify them of the law. These providers are expected to shut down New Zealand customer accounts and refund any outstanding balances.
Vicki Scott, Director of Gambling at the DIA, emphasized the government’s strict position:
“We expect that responsible gambling operators will respect and comply with this law change. If an overseas company is offering you these bets, they are breaking the law here.”
The move is not just regulatory; it aims to protect consumers from unlicensed offshore betting providers that may offer limited recourse in the event of disputes, payouts, or account suspensions.
The Tab NZ Monopoly: Centralising Betting for National Gains
The decision to grant Tab NZ a monopoly over online sports and racing betting aligns with the government’s goal of channeling gambling revenue into domestic racing and sporting infrastructure. Tab NZ has historically served as the primary conduit for legal wagering in the country, and this update reinforces its role as a state-supported monopoly.
By localizing the industry, the government expects to boost financial returns to New Zealand’s racing sector, improve tax collection, and reduce the risk of gambling-related harm by providing services under a strict consumer protection regime.
Casino Gambling and Future Licensing: Regulatory Evolution Ahead
Notably, the new law does not yet cover online casino gambling, which remains in a legal grey area. However, the DIA recently launched the Online Gambling Implementation Programme, signaling intentions to regulate the sector in the near future.
Operators have been invited to express interest in the forthcoming licensing process for online casinos, which, once implemented, would allow approved operators to legally advertise and operate within New Zealand’s borders. This marks a significant shift from the status quo under the Gambling Act 2003, which prohibits all but state-run gambling activities.
Conclusion: A Bold Move Toward Safer and More Profitable Gambling
New Zealand’s move to restrict online betting to a single, state-sanctioned provider reflects a broader global trend: bringing offshore gambling markets under domestic regulatory control. While critics may argue this limits consumer choice, the government maintains that it’s a necessary trade-off to ensure integrity, consumer safety, and public benefit.
As New Zealand proceeds toward a fully licensed online gambling environment, potentially including online casinos, Tab NZ’s monopoly on sports and racing betting is only the first step in a larger strategy to modernise and secure the country’s digital wagering landscape.
