New Zealand will begin auctioning the right to apply for its first regulated online casino licences on Tuesday as the country enters the second stage of its new licensing regime.
The Department of Internal Affairs has confirmed that the auction will start on September 29, with operators that successfully passed the expression-of-interest stage already invited to participate.
Up to 15 operators can secure the right to submit full licence applications, which are scheduled to open in October. Winning at auction will not itself constitute regulatory approval.
The competitive process will use an ascending-clock auction. All remaining bidders will be offered the same price at each stage, with participants withdrawing as the price rises until demand matches the number of available licences.
Each licence will cover a single brand and initially run for up to three years, with provision for a further five-year renewal. No operator can control more than three licences.
Successful bidders will subsequently have to provide detailed business plans and strategies covering advertising, consumer protection, harm prevention and compliance before the Department determines whether they are suitable to hold a licence.
The government has not disclosed the number or identities of operators participating in Tuesday’s auction.
Internal Affairs Minister Brooke van Velden said when the legislation passed Parliament that “up to 15 licences will be available through a competitive process”.
New Zealand’s Online Casino Gambling Act came into force earlier this year, replacing a system under which customers could access offshore casinos without those operators being licensed domestically.
From December 1, providers that have not submitted a licence application will be required to stop offering online casino gambling in New Zealand. Operators with applications still under consideration will be permitted to continue serving customers but cannot advertise while awaiting a decision.
The Department expects the licensed market to become fully operational during 2027.
Tags: The Department of Internal Affairs New Zealand, Internal Affairs Minister Brooke van Velden,New Zealand’s Online Casino Gambling Act
