(AsiaGameHub) –   The New Zealand Department of Internal Affairs (DIA) has disclosed historical figures regarding the nation’s online gambling sector, estimating the total annual market value to exceed NZD$1.3bn.

This data was released in anticipation of the country’s transition to a regulated iGaming framework. Trina Lowry, the DIA’s Programme Director for Online Gambling Implementation, observed that the findings indicate the market is growing in both scale and intensity. She believes the upcoming regulations will enhance player protections and “ensure harm minimisation standards are met.”

The Online Casino Gambling Act 2026 took effect at the start of May, establishing the regulatory structure and initiating a three-phase licensing process. This includes an auction for up to 15 online casino licences ahead of the official market launch on 1 December 2026.

Starting 1 June 2027, only licensed operators will be authorized to provide online casino services within New Zealand.

New Zealanders wagering more online

The DIA engaged DOT Loves Data to evaluate the country’s existing online gambling landscape, covering the two-year period from October 2023 to September 2025.

The report’s methodology included:

• Using consumer card transaction data from a single bank, which was then upweighted to project the total market size.
• Focusing on deposit spending rather than total wagered amounts, excluding any winnings.
• Excluding New Zealand’s statutory providers, specifically Lotto NZ and the TAB.

Notably, the report estimates the New Zealand online gambling market at NZ$1.36bn annually (roughly €685.2m). The 15 largest merchants account for 82.5% of total market expenditure, with 96.3% of spending directed toward operators based in four countries: Cyprus, Gibraltar, Great Britain, and Malta.

Monthly spending has consistently surpassed $100m since March 2024, with an estimated 360,000 unique users recorded as of September 2025.

As of September last year, market spending had increased by more than $129.6m, representing a 10.5% year-on-year (YoY) rise. Transaction volume grew by 8.8%, while the number of unique users increased by 2.7% to approximately 360,000, suggesting that existing players are increasing their spending.

Vertical splits

For dedicated online casino operators, spending rose by 38% YoY, with transaction counts and unique user numbers climbing by 21% and 5%, respectively.

Hybrid operators, which provide a variety of gaming options, saw a 22% YoY increase in spending, alongside a 23% rise in transactions and an 11% increase in unique users.

Conversely, the sports betting sector experienced a 37% YoY decline in spending, with transactions falling by 36% and unique users decreasing by 14%.

The report also highlighted that individuals from the most deprived areas are the most frequent online gamblers. The 40% of the population in the most deprived quintiles accounted for over 50% of total gambling expenditure (28.4% from Quintile 5 and 21.9% from Quintile 4), whereas the wealthiest 20% (Quintile 1) contributed 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

Regarding specific verticals, casino spending among high-deprivation demographics grew at a faster rate of 41% compared to the 22% growth seen in the broader hybrid market.

In a communication from the DIA, Lowry noted: “The data indicates that the market is growing in both breadth (an increase in the number of gamblers) and depth (a rise in transactions per person and higher spending per transaction).”

“Regulating this industry will improve safety for those choosing to use licensed online casino platforms in New Zealand. It will ensure that harm minimisation standards are upheld, preventing criminal activity and dishonesty, and ensuring that all operators in New Zealand comply with our regulations.”

Next steps

While online casino licences are slated for issuance from early 2027, there are currently no changes for New Zealand-based online casino players.

Online casinos that were active in the country prior to 1 May 2026 may continue operations until 1 December 2026, though they are forbidden from advertising to local players.

Furthermore, several operators are currently facing coordinated legal proceedings in the Auckland High Court, with claims filed against bet365, SkyCity Entertainment Group, and Super Group regarding past gambling activities.