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Why the New Zealand Gambling Laws are Outdated

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Nowadays, online gambling is more popular than ever before. However, New Zealand gambling laws are still severely outdated. The Gambling Act of 2003 is still in place and has remained unchanged for a good 20 years. This law states that one must be 18 years old to buy lottery tickets and participate in sports betting and 20 years old to enter a land-based casino in New Zealand.

The bill also prevents residents of New Zealand from gambling online, except for the online state lottery and Totalizer Agency BoFard or TAB. The major flaw, however, is that Kiwi players are free to sign up, deposit, and place real money bets at online casinos, sportsbooks, and online poker rooms hosted abroad.

History of Gambling in New Zealand

Betting, which consists of playing games of chance along with placing bets on racing and sports, has a long and incredibly diverse tradition in the country of New Zealand. With the very first gambling rules dating all the way back to the first half of the 20th century, Kiwis have been dealing with a highly regulated industry long before other countries.

In the 1830s, gambling was virtually banned in New Zealand territory. However, at the turn of the century, New Zealanders witnessed a different regulation. While the Gambling Act of 1908 was still restrictive, it did allow betting on the most popular sporting events, such as horse racing.

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Over the course of the 20th century, the country saw two extremes regarding the regulation of gambling practices. Before the end of the first half of the century, the rules for sports betting and horse racing had tightened to the point that only a few specific betting options, such as betting on track horse races, were allowed. However, in 1961, the government’s rules were revised, and this saw the legalization of slots, lotteries, and land-based casino establishments approved by the late 1990s.

Legal Online Gambling in New Zealand

Nowadays, as previously mentioned, Kiwi players have only two options to gamble online legally – through the New Zealand Lottery Commission and TAB. All other local gambling sites are illegal to use, and even if an online casino is hosted in New Zealand, it cannot offer casino games like slots, table games, or poker. Luckily, many offshore casinos cater to Kiwi players, and nothing holds players back from playing at these sites. So a casino may be called online casino New Zealand but they are regulated by Malta and hosted on a Maltese webserver.

A similar state-controlled gambling scene exists in other countries, and the reason for this is actually relatively easy. Having just two companies having a monopoly on gambling offerings makes things easy for the New Zealand government, and by heavily taxing these two companies, they give back to the community, partially restoring the potential harm they cause by offering games of chance.

Games of Chance Classifications in New Zealand

With current legislation in place, there are four different classes of gambling in New Zealand: casino gambling pokies and other table games, lotteries and sweepstakes, Class II and III gaming (games of chance run by charity organisations), and Class IV Gambling (private gambling like house poker games).

New Zealand Gambling Laws Affecting Casinos Rather Than Players

One thing to keep in mind regarding New Zealand gambling law is that it focuses mainly on casinos rather than players. Although formally speaking, players can be fined up to NZD$20,000 or imprisoned for up to two years, it is primarily the online casinos and sportsbooks that get fined when advertising gambling or operating without a license. Gambling winnings aren’t considered taxable income either, so there is little players could do ‘’wrong’’ as opposed to the casinos offering the games. This is turned around in a country like South Africa, if you gamble online there you can get a fine. In China you can even go to prison for it!

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SkyCity Casino Operating From Malta

SkyCity is one of the most prominent gambling and entertainment companies in New Zealand. It manages five land-based casinos across the country, serving thousands of players and punters daily, generating nearly a billion dollars in turnover. However, as prominent as SkyCity is, it also has to adhere to the strict and outdated gambling laws in New Zealand.

As a result, SkyCity decided to launch its website through a Maltese subsidiary, with a gambling platform and front-end development provided by a Malta-based company – the Gaming Innovation Group. With that step they became one of the most popular online casino New Zealand.

Essentially, SkyCity is doing what most offshore casinos are doing by offering online gambling, including traditional casino games like pokies, Blackjack, and Roulette from abroad, with an evident focus on the New Zealand market and its players. This circumvents the current Gambling Act in place, with some calling it a ‘’legal loophole.’’

Future Gambling Laws in New Zealand

Obviously, the government of New Zealand and local politicians have gotten wind of this situation. As a result, the Department of Internal Affairs is now seeking submissions and is open for discussion regarding a new regulatory framework for online gambling. With a new regulatory framework in place, both domestic and overseas casinos and sportsbooks will be able to operate legally in New Zealand and offer gambling services to its residents.

Most likely, SkyCity will become the first licensed online casino in the newly regulated New Zealand online casino industry and be treated just like its land-based components.

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Alcohol and Gaming Commission of Ontario (AGCO)

Soft2Bet strengthens integrity monitoring with IBIA membership in Ontario

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Soft2Bet, a leading casino and sportsbook platform provider, has joined the International Betting Integrity Association (IBIA) and activated its membership in Ontario, Canada, following its licensing in the Canadian province.

Soft2bet obtained its Certificate of Registration from the Alcohol and Gaming Commission of Ontario (AGCO) at the end of March, where the company’s Ontario-focused brand Tooniebet.com will now feed into IBIA’s world-leading sports betting integrity monitoring platform before worldwide implementation in the coming months.

IBIA includes over 50 of the world’s leading sports betting and gaming companies, who operate over 125 sports betting brands. Soft2Bet’s decision to join the association further strengthens its own internal betting integrity protocols and IBIA’s position as the world’s leading sports betting integrity monitoring body.

David Yatom Hay, General Counsel at Soft2Bet, commented: “Soft2Bet is delighted to be joining the IBIA as we strengthen our own betting integrity monitoring processes and play our part in furthering the IBIA’s long-standing work on this key issue. Ontario is a world class iGaming jurisdiction; it will be the first market where we will implement our IBIA membership and we look forward to deploying the monitoring infrastructure worldwide in all the other markets in which we operate.

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Khalid Ali, CEO of IBIA, said: “Soft2Bet is a very welcome addition to IBIA, further strengthening our position in the Ontario market. The operator’s decision to join IBIA demonstrates its desire to utilise the best integrity protection available for its sportsbook product. The association is delighted to be able to integrate Tooniebet within our integrity monitoring system and looks forward to working closely with Soft2Bet to maintain the high integrity of its sportsbook.”

IBIA is a not-for-profit body that has no competing conflicts with the delivery of commercial services to other sectors and is run by operators and for operators to protect regulated sports betting markets from match-fixing. IBIA’s global monitoring network is a highly effective anti-corruption tool, detecting and reporting suspicious activity in regulated betting markets.

Through the IBIA monitoring network it is possible to track transactional activities linked to individual customer accounts. IBIA members generate more than $300bn in annual betting turnover (handle), accounting for approximately 50% of the global commercial regulated land-based and online sports betting sector, and in excess of 50% for online alone.

IBIA recently released a report on the Availability of Sports Betting Products which highlighted Ontario as a leading regulated gambling jurisdiction, with an expected onshore channelisation for sports betting of 92% in 2024 forecast to rise to 97% in2028. IBIA currently represents over 60% of the private sports betting operators licensed in the province. All online sportsbetting operators licensed in Ontario are required to be part of a betting integrity monitoring body.

IBIA’s Q1 2024 report detailed 56 alerts during the quarter. IBIA alerts contributed to the investigations and subsequent successful sanctioning of 21 clubs, players and officials in 2023, an increase on the 15 sanctioned in 2022.

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British Columbia Lottery Corporation

SCCG Management Signs Contract with British Columbia Lottery Corporation

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SCCG Management has signed a contract with the British Columbia Lottery Corporation (BCLC), the B.C. Crown corporation which conducts and manages commercial gambling in the province, including lotteries, casinos, and online gaming. This partnership aims to undertake a comprehensive assessment and strategic enhancement of BCLC’s diverse operations.

The work between SCCG and BCLC will involve a thorough review of technological infrastructures, strategic market positioning, and the integration of various gaming modalities. SCCG’s extensive expertise will be pivotal in harmonizing BCLC’s online and physical gaming experiences.

Stephen Crystal, Founder and CEO of SCCG Management, said: “Our collaboration with BCLC represents a remarkable opportunity to push the boundaries of innovation within the gaming industry. We are committed to deploying our resources and expertise to enhance BCLC’s operational efficiencies and customer engagement strategies. It’s an honor to partner with an organization that has a robust impact on the community through its support of public initiatives.”

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AGCO

AGCO Requires Ontario Gaming Operators to Stop Offering WBA Bets Due to Integrity Concerns

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The Alcohol and Gaming Commission of Ontario (AGCO) has mandated all Ontario-registered sportsbook operators to halt offering and accepting wagers on World Boxing Association (WBA) events immediately. This measure is being taken to protect the Ontario betting public following concerns that WBA-sanctioned boxing matches are not adequately being safeguarded against match-fixing and insider betting.

Since December 2023, the AGCO has been conducting a comprehensive review of suspicious wagering activity on a WBA-sanctioned title fight between Yoenis Tellez and Livan Navarro that was held in Orlando, Florida. Suspicious betting patterns on the bout lasting over 5.5 rounds were reported to the AGCO by two registered independent integrity monitors and detected in Ontario by a registered igaming operator. Media reports also alleged that Tellez’s Manager placed $110,000 on the match lasting longer than 5.5 rounds at a Florida casino. The bout ended with Tellez knocking out Navarro in the 10th round.

Following an intensive review that included outreach to the WBA, Ontario-registered gaming operators, independent integrity monitors, and regulators in other jurisdictions, the AGCO has concluded that bets related to WBA events do not currently meet the Registrar’s Standards for Internet Gaming.

The AGCO requires all Ontario-registered gaming operators to ensure the sport betting products they offer are on events that are effectively supervised by a sport governing body. At a minimum, the sport governing body must have and enforce codes of conduct that prohibit betting by insiders.

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Registered gaming operators were unable to demonstrate to the AGCO that the WBA prohibits betting from insiders, which could include an athlete’s coaches, managers, handlers, athletic trainers, medical professionals, or others with access to non-public information. Further, registered gaming operators were unable to demonstrate that the WBA took any action to investigate or enforce the allegations of potential match-fixing and insider wagering.

The AGCO has indicated to registered operators that in order for WBA betting products to be reinstated in Ontario, operators must demonstrate that the WBA effectively supervises its events, thus bringing them into compliance with the Registrar’s Standards. In December 2022, the AGCO required gaming operators to stop offering bets on UFC events for similar issues related to insider betting safeguards. Within a month, UFC amended its policies and implemented new protocols that allowed the AGCO to reinstate betting on UFC events in the province.

“Ontarians who wish to bet on sporting events need to be confident that those events are fairly run, and that clear integrity safeguards are in place and enforced by an effective sport governing body. Knowing the popularity of boxing in Ontario, we look forward to reinstating betting on WBA events once appropriate safeguards against possible match-fixing and insider betting have been confirmed,” Dr. Karin Schnarr, Registrar and CEO of AGCO, said.

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