Last reviewed 7 July 2026
The short version
The Gambling Act 2003 declares that all forms of gambling are illegal in New Zealand unless otherwise specifically authorised within the legislation. The Act makes provision for four classes of gambling authorisations (by scale) and also separately authorises casinos, lotteries and TAB monopolies. Overseas-based online casinos fell outside the scope of the law and were not considered an illegal act for New Zealand residents. The Online Casino Gambling Act 2026 finally closes this gap in the legislation.
The Prohibition-First Design
Most people assume that gambling is legal in New Zealand unless some rule within the law seems to specifically prohibit the activity in question. The Act works in the opposite way, however. It prohibits all forms of gambling unless they are otherwise specifically authorised within the Act.
The Act has five stated purposes. These include a desire to: control the growth of gambling in the nation, prevent and minimise the harms caused by gambling, ensure fairness in gambling activities, limit crime related to gambling and return money from gambling to the community of New Zealand (a distinctive feature as the country requires one of the gambling categories to specifically exist for community fundraising).
The Four Classes of Gambling
The Act authorises four classes of gambling within New Zealand:
| Class | What it covers | Licence needed? |
|---|---|---|
| Class 1 | Small-scale gambling - sweepstakes and games with prizes up to $500, run by individuals or as part of events | No |
| Class 2 | Community raffles and lotteries with total prizes between $500 and $5,000 - the school fundraiser tier | No, but rules apply |
| Class 3 | Larger fundraising gambling with prizes over $5,000 - big charity raffles and housie | Yes - DIA licence |
| Class 4 | Gaming machines (pokies) outside casinos - classified by the Act as high-risk gambling | Yes - the strictest regime |
The Act authorises four classes of gambling, but class 4 (which covers pokies) warrants its own paragraph. Such pokies are operated by licensed societies, a share of whose proceeds from gambling must be provided to community purposes as governed by the DIA. The actual regulation of the pokies, including their numbers and the type of games that are to be operated, are covered in this clause of the Act. This class of gambling produces the most losses (gambling harm) of all types of gambling in the country.
Casinos and the Moratorium
The Act separately licences casinos and places a ceiling on the number of them. There are currently six licensed casinos in operation in New Zealand (Auckland, Hamilton, Christchurch, Dunedin and two in Queenstown). The Act prohibits the granting of any new licences for casinos, and those that already exist cannot expand their gambling activities beyond set limits without going through the Gambling Commission.
These provisions have two consequences. First, it means that the bulk of New Zealand's residents live hours' drive from the nearest licensed casino - a factor in the popularity of online casino gambling in the country. Second, because of the Act, the operators of these licensed casinos were among the natural applicants for online casino gambling licences.
Within licensed casinos, the entry requirements are different from most other forms of gambling in the country. To enter the gambling floor of licensed casinos residents must be at least 20 years of age (R20), whereas for most forms of gambling in the nation residents must be at least 18 years old (R18) - our gambling age guide provides more information on this difference.
The Lotto and TAB Monopolies
Two forms of gambling are reserved for specific statutory operators. Lotto New Zealand operates the national lotteries (Lotto, Powerball, Instant Kiwi) and the online sales of tickets for those lotteries, while TAB New Zealand holds sports and racing betting. TAB and Lotto are also licensed to offer their gambling products online. The TAB is the only organisation permitted to legally offer online sports and racing betting to residents of New Zealand.
These two operators are the reasons that online gambling is not entirely illegal in New Zealand. The Act allows for licensed organisations to offer their products online, including Lotto and TAB. The Act does, however, not authorise online casinos within New Zealand. While other forms of online gambling exist within the licensed operators, online casinos are not included within the authorisations.
The Online Gambling Gap - The Definition That Made the Grey Market
Within the Act, there is a clause that addresses the issue of the internet. The Act prohibits what is referred to as "remote interactive gambling". However, the definition of this type of gambling was written around the definition of gambling that takes place in New Zealand itself. As such, gambling that is run by an operator outside of New Zealand does fall outside the provisions of the Act as it relates to the players of the gambling sites.
As a result, which has been stated time and time again by the DIA and organisations dedicated to the regulation of gambling in New Zealand, a player of New Zealand who plays online pokies at an overseas operator does not commit any offence under New Zealand law. The overseas operator does not fall within the licensing terms of the Act and the players fall outside the prohibited activities defined in the Act. Thus, such activity is considered a grey market activity in the country - our ranking of the casinos serving NZ players covers that market as it stands today.
This gap in the law for players of online casinos was created unintentionally. When the Act was written in 2003, online casinos were a marginal industry and there seemed to be no need to address them further. However, the growth of online casinos overseas led to New Zealanders losing hundreds of millions of New Zealand dollars each year on overseas online casinos. Each review of the Act indicated that the prohibitions on players of online casinos were unenforceable, thus leading to the suggestion of licensing operators.
What Is Actually Illegal Under the 2003 Act
The gap for online casino players is not a gap for everyone. The offences related to online gambling fall within the supply of online casinos, as opposed to the players themselves:
- Operating remote interactive gambling from New Zealand - running an online casino from inside the country has always been an offence. This is why no "NZ online casino" existed before licensing, whatever the marketing said.
- Advertising overseas gambling - publishing advertisements for overseas gambling operators in New Zealand is an offence. It is why international casinos never appeared on NZ billboards or television, and why their visibility ran through search engines instead.
- Underage gambling - supplying gambling to minors carries penalties throughout the Act's classes, with the age thresholds enforced against venues and operators.
- Unlicensed Class 3 and Class 4 operation - running pokies or large lotteries without a licence, and breaching the community-return rules, are the offences the DIA prosecutes most routinely.
Note the offence of gambling itself is not mentioned anywhere in this list. Only offences related to the operators, venues and advertising of online casinos are defined within the Act. These provisions will be maintained under the Online Casino Gambling Act 2026.
How the 2026 Act Changes the Picture
The Online Casino Gambling Act 2026 does not repeal the Gambling Act 2003. Instead, the 2026 Act adds to it. The classes of gambling, the licensing of casinos, the regulation of pokies, the licensing of lotteries, sports and racing betting and the role of the DIA will remain the same. The online casino licensing will be added, however, which will allow up to 15 operators into the market from 1 December 2026. Offering online casino gambling to New Zealanders without a licence will become an offence with fines up to NZ$5 million for such an act.
These two Acts work together to create a comprehensive law on gambling in New Zealand. The Gambling Act 2003 will authorise and police gambling within New Zealand itself, whereas the Online Casino Gambling Act 2026 will extend the policing of that gambling to the online casinos that fell outside of the 2003 Act's definitions.
Frequently Asked Questions
What does the Gambling Act 2003 actually do?
The foundation law of gambling in New Zealand is the Gambling Act 2003. This law states that all forms of gambling are illegal unless otherwise specifically authorised within the Act. Within the Act are the authorisations for four classes of gambling, licensing of casinos and pokies, the reservation of lotteries and betting to organisations like Lotto NZ and TAB NZ, and the provision of enforcement powers to the DIA.
What are the four classes of gambling?
Class 1 authorises gambling prizes of $500 or less. Class 2 allows for community raffle prizes of $5,000 or less, which require no licence to run. Class 3 covers other types of gambling for fundraising purposes for communities, which require licensing from the DIA to run. Class 4 is for pokies outside of licensed casinos, which have the highest level of risk and have specific rules about the returns to the communities in which those pokies are established.
Why were overseas online casinos legal for players?
The Act's prohibition on "remote interactive gambling" was written around gambling in New Zealand. Thus, online casinos run outside of New Zealand fall outside of the Act as it relates to the players.
Is it illegal to advertise overseas casinos in NZ?
Yes - the publishing of advertisements for overseas online casinos is an offence under the Gambling Act 2003. This is one of the reasons why the grey market for online casinos has lived in search results rather than on billboards. The Online Casino Gambling Act 2026 writes new advertising rules for licensed operators only.
Does the 2003 Act still apply after the 2026 changes?
Yes - the Online Casino Gambling Act 2026 adds to the Gambling Act 2003 rather than replacing it. The 2003 Act will still apply to pokies, land-based casinos, Lotto, the TAB and community gambling.
Written by
Kai Halvorsen
Casino Terms Analyst · Wellington, NZ
Kai reads the fine print for a living. Every guide on this site is built from primary sources - the legislation, the regulators' own publications and each casino's published terms - and updated when the rules change.
Sources and Further Reading
- Gambling Act 2003 - New Zealand Legislation (the full current text)
- Department of Internal Affairs - Gambling regulation (licensing and compliance under the Act)
- Online Casino Gambling Bill - New Zealand Legislation (the 2026 addition)
Related guides: the law hub · legal gambling ages · who regulates online gambling · grey market casinos explained
