Vicki Scott, DIA: “The Online Casino Gambling Act provides the regulator with new enforcement tools”
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The director of Gambling at New Zealand’s Department of Internal Affairs outlines the rollout of the country’s new online casino regulatory regime following the passage of the Online Casino Gambling Act.
Exclusive interview.- In this exclusive interview with Focus Gaming News, Vicki Scott, director of Gambling at New Zealand’s Department of Internal Affairs (DIA), outlines the next phase following the passage of the Online Casino Gambling Bill. She explains how the government will structure the upcoming licensing regime for online casino operators, including a competitive allocation process, eligibility checks, and a staged rollout expected to begin in mid-2026.
Scott also details the regulatory framework that will underpin the new market, including strict advertising prohibitions, enforcement tools against offshore operators, and financial obligations such as the Online Gambling Duty and Problem Gambling Levy. The discussion also touches on international cooperation in tackling illegal online gambling and the DIA’s priorities as it moves towards implementing and supervising a fully regulated online casino sector.
The Online Casino Gambling Bill has now passed its third and final reading. What are the next concrete steps for the DIA, and when do you expect the licensing regime to officially open for operator applications?
The first stage of the licensing process is expected to open in July 2026; this is when we will start accepting expressions of interest applications. The immediate next steps are for the Department to ensure that those interested in applying for a licence have all the information they need to do so. This includes full guidance on making an expression of interest (EOI) submission.
Before EOIs opening, in mid-June, detailed regulations for harm prevention and minimisation, consumer protection, advertising and marketing, as well as fees, levies and charges for the new regime will be published. The minimum standards for online casino gambling will be published at the same time. We will begin sharing more information at this stage to provide certainty and ensure entities that wish to pursue a licence can make a fair assessment of the cost of compliance to enter the New Zealand market.
Up to 15 licences will be available under the new regime. What criteria will prioritise applicants, and is there a preference for operators already regulated and licensed in other reputable jurisdictions?
The Government decided to incorporate a competitive element into the three-stage licensing process to determine which online casino gambling providers will be invited to submit a licence application.
The competitive process will be in the form of an ascending clock auction. This type of auction works by gradually increasing the price in steps. At each step, all participants are offered the same price at the same time and choose whether to stay in the auction or withdraw. As the price rises, participants exit once the price is higher than what they are willing to pay. The auction continues until demand matches what is available. This approach, which treats all participants equally, has been chosen because it is well-suited to situations where transparency and fairness are important.
Before participating in the auction, interested entities must complete an expression of interest (EOI). The purpose of the EOI is to check whether those interested are eligible to participate in the process.
For example, this includes checks to ensure they have access to enough available capital to participate in the auction, criminal background checks of selected key officers, such as the CEO, and ensuring there would be no reputational risks to New Zealand should the interested entity become licensed.
“The Government decided to incorporate a competitive element into the three-stage licensing process to determine which online casino gambling providers will be invited to submit a licence application.”
Vicki Scott, director of gambling at the DIA – New Zealand.
How will the DIA enforce compliance against offshore operators who refuse to obtain a licence and continue targeting New Zealand customers through digital marketing and social media? What enforcement tools will become available once the legislation is fully in force?
The Online Casino Gambling Act came into force on 1 May 2026. The Act provides the regulator with new enforcement tools, including the ability to issue takedown notices and substantially increased pecuniary penalties of up to NZ$5m (US.8m) per breach.
These powers are extra-territorial, so the offending entity does not need to be based in New Zealand for us to take action.
We have built strong relationships with social media platforms over the past 12 months and have processes in place to remove unlawful content and profiles belonging to individuals who persistently breach the advertising prohibition under the Gambling Act 2003. We will continue to work closely with these platforms to ensure the new prohibition on advertising unlicensed online casino gambling under the Online Casino Gambling Act is effectively enforced.
What are the projected tax revenues from the regulated online casino market, and how much of these funds will be allocated specifically to community sports clubs, grassroots organisations, and gambling harm prevention programmes?
The Online Gambling Duty is set at 16 per cent of the profits of a licensed online casino gambling operator, with 4 per cent of this duty being allocated for community returns. The message was clear from those who made submissions to Parliament during the legislative process that they want to see benefits flow back to local sports clubs and community groups.
Licensed operators will also be required to pay 1.24 per cent (excluding GST) of gross gambling profits to the Problem Gambling Levy, which funds harm prevention initiatives.
You mentioned in our last interview that you attended the International Association of Gambling Regulators Conference in Toronto. Which international lessons or best practices have most shaped New Zealand’s approach to online casino regulation and enforcement?
One of the key insights I took away from the conference was that it is clear that effective regulation of online casinos is a global effort and one that relies on strong international partnerships, open dialogue, and a commitment to continuous learning.
There is a real sense of momentum in the international regulatory space, particularly the establishment of international working groups which have been set up to tackle shared issues such as illegal online gambling and the black market. Getting involved in these groups has been especially valuable for New Zealand because we have a limited number of licensed operators in our market and will be actively regulating a larger unlicensed market.
“Clear effective regulation of online casinos is a global effort and one that relies on strong international partnerships, open dialogue, and a commitment to continuous learning.”
Vicki Scott, director of gambling at the DIA – New Zealand.
Looking ahead to the next 12 months, what are the DIA’s top three priorities as the regulated online casino market launches in New Zealand?
In creating our new regulatory function and introducing a licensed market in New Zealand, our top three priorities over the next 12 months are:
- Conducting the three-stage licensing process. By December this year, we will have considered expressions of interest, run the auction, and received licence applications from up to 15 auction winners. We’re aiming to have decided all licence applications by 1 June 2027, but anticipate we will be able to start issuing licences earlier in the year.
- Ensuring compliance with the new Act. Our focus will be on both the advertising prohibition that came into force on 1 May 2026 and enforcing the 1 December 2026 prohibition on offering unlicensed online casino gambling. From the latter date, online casinos that have not applied for a licence must exit the New Zealand market.
- Finally, as we get closer to the establishment of the licensed market, we will focus on educating New Zealanders who choose to gamble. This will include how to identify licensed operators, the benefits of using licensed operators (particularly the consumer protection and harm minimisation measures in place), as well as working with our colleagues at Health New Zealand on raising awareness of the risks of gambling and how to access support.
These three priorities aim to maximise channelisation to the licensed system, so that those who choose to gamble will do so on safer, accountable platforms.
The director of Gambling at New Zealand’s Department of Internal Affairs outlines the rollout of the country’s new online casino regulatory regime following the passage of the Online Casino Gambling Act. Exclusive interview.- In this exclusive interview with Focus Gaming News, Vicki Scott, director of Gambling at New Zealand’s Department of Internal Affairs (DIA), outlines…
