Online Casino Ad Surge Looms if New Zealand Lifts Longstanding Ban

The controversial Online Casino Bill, now before Parliament’s Governance and Administration select committee, would permit up to 15 licensed operators to advertise and operate legally, while blocking access to unlicensed sites through geo-blocking.

Community groups, however, have sounded the alarm over what they describe as the inevitable “tsunami” of advertising that would follow. Pub Charity managing director Martin Cheer warned that inducements such as free credits, push alerts, and aggressive digital targeting would quickly become commonplace. “If you are sick of seeing Entain and TAB on your screen now, you have not seen anything yet,” he told MPs, stressing that determined users will always find ways to bypass geo-blocking.

The Problem Gambling Foundation echoed these concerns, pointing in particular to the lack of restrictions on inducements. Spokesperson Andree Froude highlighted how bonus offers often mask predatory conditions. In one case, a woman enticed by a NZD $1,000 (US$592) welcome bonus discovered she had to wager 40 times that amount before she could withdraw any winnings. “These practices are designed to hook people, especially young or vulnerable users, into harmful cycles of gambling,” Froude said.

Critics also fear wider social costs, particularly for community sport and services. Martin Snedden of the Community Sport Collective argued that legalising online casino ads would inevitably erode revenue from physical gaming machines, which currently channel significant funding into local clubs and activities. “The flow-on effect could be devastating for grassroots sport,” he warned.

Despite these warnings, some industry stakeholders are backing the proposal. The TAB has signalled interest in expanding into the online casino space, likely through its existing partnership with British betting giant Entain. Meanwhile, Guernsey-based operator SGHC welcomed the bill but argued that the cap of 15 licensed operators should be lifted to allow for greater market competition.

As submissions continue, the debate highlights a sharp divide between community advocates worried about gambling harm and industry players eager to expand into a lucrative new market. With New Zealand’s longstanding advertising ban potentially on the verge of being overturned, the question remains whether economic opportunity will outweigh social cost.