The New Zealand Department of Internal Affairs (DIA) has released historical data on the country’s online gambling market, with estimates showing the total size to be over NZD$1.3bn a year.
The data has been published ahead of the country’s adoption of a regulated iGaming framework, with Trina Lowry, Programme Director – Online Gambling Implementation for the DIA, noting that the insights show the market is expanding in breadth and depth. In her view, the incoming regulation will help improve protections for those who gamble and “ensure harm minimisation standards are met”.
At the beginning of May, the Online Casino Gambling Act 2026 came into effect, establishing a framework for a regulated market and kickstarting the three-stage licensing process, where up to 15 online casino gambling licences will be up for auction ahead of a scheduled market launch on 1 December 2026.
On 1 June 2027, only operators that hold a licence will be permitted to operate in the New Zealand online casino market.
New Zealanders wagering more online
The DIA commissioned DOT Loves Data to analyse the existing online gambling market in the country, with insights capturing the two-year period from October 2023 to September 2025.
The methodology used in the report included:
- Consumer card transactions from one bank and upweighted to estimate the total market size.
- Spend on deposits (not necessarily amounts wagered) and do not take any winnings into account.
- New Zealand statutory providers (Lotto NZ and the TAB) were excluded.
Of note, the report showed that the estimated size of New Zealand’s online gambling market is NZ$1.36bn per year (approximately €685.2m). The top 15 merchants represent 82.5% of the total market spend, with the top four countries (Cyprus, Gibraltar, Great Britain and Malta) capturing 96.3% of the market spend.
Spending per month in the online market has been over $100m per month since March 2024, while the market had an estimated 360,000 unique customers as of September 2025.
Market spend as of September last year was up more than $129.6m, up 10.5% year-on-year (YoY). The number of transactions is up 8.8%, while the number of unique customers has risen by 2.7%, totalling approximately 360,000. The report stated that this indicates existing customers are spending more.
Vertical splits
For sole online casino operators, spend has increased by 38% YoY, while transactions and unique customers have increased as well by 21% and 5%, respectively.
For hybrid operators, described as those offering multiple gaming options, spend has risen by 22% YoY, while transactions and unique customers rose by 23% and 11%, respectively.
However, sports betting saw its spend drop by 37% YoY, with transactions dropping by 36% and unique customers falling by 14%.
The report also mentioned that the most deprived New Zealanders are the most frequent online gambling customers, with the most deprived 40% of the population accounting for more than 50% of total gambling spend (Quintile 5 at 28.4% and Quintile 4 at 21.9%), while the wealthiest 20% (Quintile 1) accounts for only 14.9%.
“The market is expanding both in breadth and depth.”
Trina Lowry, Programme Director – Online Gambling Implementation for the Department of Internal Affairs
Per vertical, casino spend among high-deprivation groups has grown much faster at 41% than the overall hybrid market at 22%.
Lowry stated in a DIA email update: “The data tells us the market is expanding both in breadth (more people gambling) and depth (more transactions per person gambling and higher spend per transaction).
“Regulating this sector will increase protection for those who choose to gamble on licensed online casino gambling platforms in New Zealand. It will ensure harm minimisation standards are met, preventing crime and dishonesty and making sure that those operating in New Zealand follow our rules.”
Next steps
Online casino licences are expected to be issued from early 2027 onwards, but there are currently no changes for online casino customers in New Zealand.
Online casinos active in the country before 1 May 2026 may continue to operate until 1 December 2026, but are prohibited from advertising to players in the country.
However, a handful of operators face coordinated legal action in New Zealand, as claims have been filed in the High Court in Auckland against bet365, SkyCity Entertainment Group and Super Group on retrospective gambling activities.
