Key Moments:
- Government estimates showed New Zealanders deposited NZ$1.36 billion annually into mostly offshore online gambling platforms between October 2023 and September 2025.
- Casino-focused platforms led a 38% year-on-year increase in spending, while sports betting spending dropped 37% within the same period.
- Individuals in New Zealand’s most disadvantaged communities contributed a disproportionately high share of online gambling expenditure.
Offshore Gambling Spend Far Exceeds Expectations
Recently unveiled data from New Zealand’s Department of Internal Affairs (DIA) has provided new insight into the scale of online gambling activity prior to the country’s introduction of a formal regulatory framework. More than NZ$100 million per month was moving from New Zealand to overseas gambling sites for over a year, with annual consumer deposits totaling an estimated NZ$1.36 billion between October 2023 and September 2025.
The vast majority of these funds left New Zealand, with the DIA’s report highlighting that operators based in Cyprus, Gibraltar, Great Britain, and Malta captured more than 96% of total online gambling spend. Notably, just 15 merchants accounted for over four-fifths of the entire market.
| Reporting Period | Total Annual Deposits | Top Operator Locations | Market Share (by top 15 merchants) |
|---|---|---|---|
| Oct 2023 – Sep 2025 | NZ$1.36 billion | Cyprus, Gibraltar, Great Britain, Malta | More than 80% |
New Regulatory Framework Introduced
The Online Casino Gambling Act 2026 officially took effect earlier this month, establishing the foundation for New Zealand’s regulated iGaming sector. Authorities have outlined plans to auction up to 15 licenses prior to the full launch slated for December 1, 2026. After implementation, unlicensed operators will be excluded by mid-2027.
This transition follows years during which rapid offshore market growth outpaced enforcement and consumer protections. The DIA-commissioned analysis, conducted by DOT Loves Data, indicated that while transaction volumes increased by nearly 9% year-on-year by September 2025, total spend climbed faster at 10.5%. Unique customer growth, however, rose just 2.7% to approximately 360,000 users, pointing to intensified activity by existing participants rather than a surge in new gamblers.
Sector-Specific Trends Highlight Shifts in Player Behavior
Operator data spotlighted online casinos as a primary driver of growth, with spending in that category surging 38% year-on-year. Hybrid platforms combining casino games, sports betting, and other products also saw significant upswings. In stark contrast, sports betting experienced steep declines across spend, transaction count, and customer numbers – with spending falling 37% year-on-year.
| Type | Year-on-Year Spend Change |
|---|---|
| Standalone Casino Brands | +38% |
| Hybrid Platforms | +22% |
| Sports Betting | -37% |
Socioeconomic Patterns in Gambling Expenditure
The research also revealed that New Zealanders living in the country’s most deprived areas were responsible for more than half of all online gambling spend. The bottom 40% on the deprivation index contributed over 50% of expenditure, while the most affluent fifth of the population accounted for less than 15%. Among higher-deprivation groups, online casino spending rose 41%, compared to a 22% increase for hybrid operators across the aggregate customer base.
Government Emphasizes Harm Minimization as Regulation Advances
Officials argue that the new licensing regime is essential for imposing consumer protection standards on operators who have previously operated with little oversight. Trina Lowry, head of the DIA’s online gambling implementation program, described the market as one where, “more people are gambling online while regular users increased both transaction frequency and average spending levels.” The DIA asserts the new system will introduce harm-minimization requirements absent from the offshore sector.
New Zealand’s approach distinguishes itself by allowing offshore operators already serving local customers prior to May 1 to remain active until the end of 2026, subject to new advertising restrictions.
Legal Action Targets Past Market Players
Legal challenges have recently begun targeting former operators in the unregulated market. Cases involving bet365, SkyCity Entertainment Group, and Super Group have been filed in Auckland’s High Court, linked to their historic operations in the sector. For many years, the market existed in legal limbo – although it was lawful for New Zealand residents to access these platforms, the companies themselves operated largely outside domestic regulation. The DIA’s disclosure confirms that the industry had already crossed the billion-dollar threshold before the first official license round was even announced.
- Author
Daniel Williams
