In recent months, the DIA has taken notice of social media influencers who have been illegally promoting overseas casinos and online gambling, leading to the DIA issuing formal warning or ‘cease and desist' letters to a group of influencers in March and April.

After influencer Millie Elder-Holmes failed to heed the DIA’s warning, the DIA issued her a fine of NZ$5,000 in May. With continued monitoring and reportedly an ongoing “watchlist”, there might be more fines to come. 

Publishing or arranging to publish an overseas gambling advertisement is prohibited under section 16 of the Gambling Act 2003, punishable by a maximum fine of NZ$10,000. There are concerns that a fine of this size is not a sufficient deterrent, considering the amounts influencers are being offered by offshore gambling operators to publish for such advertisements and promotions (for example, reportedly NZ$5,000 for a single Instagram story).

Online Gambling Bill on the way

There is a wider question to be answered as to whether gambling regulation in New Zealand is generally fit for purpose given the global online world in which we now live, which has come a long way since the Gambling Act 2003 was first enacted. Since March 2024 the Government has been exploring options for further regulation. The Online Gambling Bill (Bill) is expected to be introduced to parliament in mid-2025 and enacted early 2026.

Cabinet papers (recently proactively released) indicate the Bill will introduce a licensing system for overseas gambling operators, as is already used for land-based gambling operators in New Zealand. The Government plans on limiting the number of licences available through this system to 15 through an auction process. Operators will need to meet robust criteria to gain a licence, including providing:

• declarations of any breaches of law, in New Zealand and offshore;
• business plans and strategies in New Zealand;
• harm prevention /minimisation and consumer protection strategies and how they comply with the New Zealand regulatory framework;
• information about how they comply with the Privacy Act 2020 and anti-money laundering legislation in New Zealand; and
• information about its marketing strategy and compliance with New Zealand advertising regulatory framework.

The prohibition on advertising overseas gambling under section 16 of the Gambling Act 2003 will be lifted for licensed operators. Anyone who advertises overseas gambling without a license, or fails to comply with a takedown notice from the DIA, could face a fine of up to NZ$300k, or up to NZ$5m in the case of a body corporate. Such a significant increase in potential fines should give social media influencers pause for thought.

Next steps

The details of the Bill will be confirmed when it is introduced to parliament, and both stakeholders and the public will get to have their say during the select committee process.

Find out more

If you have any questions about doing business online in New Zealand, including as it relates to gambling, our technology and online business experts Campbell Featherstone, Hayley Miller and Natalie Fraser-Jones are available to assist.

This article was written by Natalie Fraser-Jones, an Associate in our Technology practice.