New Zealand is the ideal tourist and gambling destination. Why? For starters, it has a large national reserve, and 80 percent of its population gamble almost every week. It is one of the most profitable businesses. In the past half-decade, gambling activities mostly on cricket games and their users have more than doubled, with new laws and restrictions needed to streamline gambling channels.
This year, the Department of Internal Affairs, which is in charge of all things gambling in the country, has made new strides in controlling the direction of gambling in New Zealand. Hence in the post, we’ll explore the current destination of New Zealand gambling in 2023.
New Zealand’s Gambling Industry
Like many other countries worldwide, New Zealand’s economy took a hit during the pandemic. The rampant growth of gambling activities stopped because several pubs, clubs, and casinos were temporarily closed. Millions were lost, and it looked like gambling activities across the country wouldn’t retain their previous growth, but they all sprung back to life naturally.
Before the pandemic, New Zealand’s gambling expenditure was up to $2.4 billion. Now it is well over the $3 billion mark, with several citizens spending more or different gambling preferences. The most popular are the poker machines outside casinos and online casinos that came up in the next years.
New Zealand has almost 20000 poker machines, with more than 80 percent found in clubs and pubs, while the other 20 percent are in-game houses and casinos. This means the country’s gambling lifestyle is more land-based than many other countries today. Six of the most popular casinos in the country experience the most gambling traffic, with online gambling also very popular and sports betting. Only about 10% of New Zealanders bet on racing or sports activities.
However, the country still loses up to $140 million yearly because of improper gambling regulations. This shows its ever-expanding gambling population and the common problematic gambling behaviours in the country. Every year, some gamblers fall off and have control issues with games. With no stringent regulations, up to 60% of problem gamblers return to their habits yearly without rehabilitation and restrictions. That’s why more than 76,000 New Zealand adults are at risk of harm from gambling in 2023.
With the current gambling landscape in the country, the market is projected to rise to at least $600 million by 2027. Although there’s a lot to do regarding more gambling restrictions and dealing with people with gambling addictions, the market for gambling in New Zealand continues to evolve.
New Zealand and Gambling Laws
All New Zealand gambling activities fall under the New Zealand Gambling Act of 2003. Following the act, there are major gambling activities that are illegal under the act, and they are:
- Remote interactive gambling
- Advertising gambling overseas
- Gambling Excerpts of the Act
- Illegal gambling prizes
These acts can exist in different classes, which function with gambling operators authorized by the government. The government uses regulatory systems like entities, licensing, rule-setting, public health promotion, and enforcement to main law and order in gambling activities.
Below are some agencies embedded in the gambling regulatory system:
- The Ministry of Health
- The Department of Internal Affairs
- Territorial Authorities
- The Gambling Commission
- The Health Promotion Agency
- The New Zealand Lottery Commission
Every Class of Gambling Law
The class 1 rule states that gambling prizes above $500 is illegal, and this class is created for regular individuals gambling. Class 2 law governs societies given clearance by the gambling act, which states that gambling within this class must have rewards between $500 and $5,000. Also, the potential gain from gambling must exceed $500 but cannot be more than $25,000.
As for classes 3 and 4, 3 instructs that gambling must have rewards with a total value beyond $5,000, class 4 involves gaming machines, and both classes cannot participate without a license.
The Gambling Act of 2003 was created to control gambling growth, encourage responsible gambling, prevent gambling harm, ensure fairness, limit criminal opportunities, and many more. It was also structured to ensure profits from gambling benefit nearby communities, making them less prone to profiting from private pockets. However, even due to the strict nature of the Act of 2003, there are several exceptions to every rule, which apply under unique conditions.
Conclusion
In 2023, the direction of gambling in New Zealand will be shaped by its expanding industry and its efforts to regulate and control its growth. Although the current laws have remained unchanged for several years, there is a growing recognition that further adjustments may be necessary to adapt to the evolving gambling landscape.
Currently, new casino licenses are unlikely to be issued under the existing laws, and betting sites remain illegal and unlicensed. To maintain law and order in gambling activities, balancing growth and responsible gambling practices is crucial. The government and relevant agencies must remain vigilant in implementing effective measures to minimize the risks associated with gambling and provide support to those affected by addiction.
