The online gambling industry in New Zealand is experiencing rapid growth, fueled by technological advancements, evolving player preferences, and a unique regulatory framework. Despite the lack of locally licensed online casinos, residents have embraced offshore platforms, which offer extensive game selections, generous bonuses, and reliable payment options. As online gambling gains traction, the market is poised for further expansion, supported by mobile gaming, sports betting, and a flourishing economy. This article delves into the factors driving this growth, New Zealand’s regulatory stance, and its economic implications.

Key Factors Driving New Zealand’s Online Gambling Boom
Technological advancements revolutionizing access
The shift from traditional casinos to online platforms has been driven by convenience and accessibility. Players can now enjoy a wide array of games from the comfort of their homes, eliminating the need for physical casino visits.

The rise of mobile gambling
The increasing popularity of mobile devices has made gambling on the go a reality. Whether it’s poker or roulette, players can access their favorite games through smartphones and tablets, boosting engagement and expanding the market.

Sports betting: A cultural phenomenon
With sports deeply ingrained in New Zealand’s culture, the integration of sportsbook sections in online casinos has been a game-changer. The global sports betting market, valued at $235.46 billion, has made a significant impact on the nation’s gambling landscape.

The Role of Regulation in New Zealand’s Gambling Industry
A contradictory yet effective framework
While New Zealand prohibits local companies from offering online casino games, residents are free to engage with offshore platforms. This unique setup ensures that players can enjoy gambling while maintaining some level of regulatory oversight.

The Department of Internal Affairs’ role
The Department of Internal Affairs regulates the online gambling market to protect players. By ensuring offshore operators comply with legal standards, the government fosters trust and safety within the system, encouraging player participation.

Boosting consumer confidence
Efforts to safeguard players have bolstered public trust in online gambling platforms, further driving market growth. New Zealand’s regulatory measures assure players of a secure and fair gambling experience.

Economic Factors Supporting the Growth
Stable economy and high disposable income
New Zealand’s strong economy, coupled with a high standard of living, allows residents to spend discretionary income on entertainment, including online gambling. This financial stability underpins the industry’s expansion.

Tourism’s contribution to the gambling sector
As a popular tourist destination, New Zealand attracts millions of visitors annually. Many tourists engage in online casino games, especially if gambling is restricted in their home countries. This influx of foreign players adds to the industry’s growth.

Offshore Casinos: The Backbone of New Zealand’s Online Gambling
Access to international platforms
New Zealand does not license any online casinos locally, but residents can access a wide range of offshore sites. These platforms attract players with competitive offerings, including welcome bonuses, diverse game libraries, and seamless payment systems.

Expert perspective on offshore gambling
Sam Bernard, a gambling industry expert, highlights that offshore casinos provide a safe and appealing alternative for New Zealanders. These platforms deliver enhanced gaming experiences while remaining accessible to local players.

Challenges and Opportunities in New Zealand’s Online Gambling Landscape
Balancing regulation and growth
New Zealand’s approach to online gambling regulation is a double-edged sword. While the government ensures player safety, the lack of local operators means that a significant portion of revenues flows to offshore platforms.

The potential for policy evolution
As the industry grows, there may be opportunities for New Zealand to reassess its regulatory stance. Licensing local operators could help retain revenues while maintaining strict oversight to protect players.

In a groundbreaking move, Australia’s Parliament has passed legislation prohibiting children under the age of 16 from using social media platforms such as TikTok, Facebook, Snapchat, Reddit, X, and Instagram. The law imposes fines of up to A$50 million ($32.5 million) on platforms failing to comply. Prime Minister Anthony Albanese emphasized the necessity of this measure to shield children from online harms, while critics argue the law’s implementation raises significant privacy and practicality concerns. The legislation, which passed swiftly through both houses, has sparked a global debate about balancing child safety and digital privacy.

What the Ban Entails
Strict regulations for social media platforms
Under the new law, platforms must ensure users under the age of 16 cannot create accounts. Companies have one year to implement compliance mechanisms before penalties take effect.

Significant penalties for non-compliance
Tech firms that fail to meet these requirements face fines of up to A$50 million ($32.5 million). The government aims to hold platforms accountable for prioritizing child safety.

Exemptions for specific platforms
Gaming and messaging platforms, as well as websites accessible without accounts like YouTube, are exempt from the ban. However, popular platforms such as Snapchat, TikTok, and Instagram will fall under its jurisdiction.

Prime Minister Albanese’s Stance
Support for parents
Prime Minister Anthony Albanese championed the legislation, stating, “We want our kids to have a childhood and parents to know we have their backs.” This sentiment aligns with widespread concerns among Australian parents about the negative impact of social media on children.

Addressing online harms
The law aims to protect minors from potential risks associated with excessive social media use, including cyberbullying, exposure to harmful content, and addiction.

Implementation Challenges
Age verification technology
The government plans to rely on age-verification mechanisms, but details remain vague. Options under consideration include biometrics and identity verification, raising concerns about feasibility and privacy.

Potential circumvention
Digital researchers warn that children may bypass the ban using tools like virtual private networks (VPNs), which mask their location.

Lack of penalties for users
While platforms face hefty fines, children who flout the rules will not face direct consequences, potentially undermining the law’s effectiveness.

Mixed Reactions from Stakeholders
Parental support
Polling suggests many Australian parents back the reform, viewing it as a long-overdue measure to protect their children. Advocates like Amy Friedlander have praised the government for addressing the issue of social media addiction and isolation among youth.

Criticism from tech companies
Major players like Google, Meta, and Snap have criticized the legislation for being overly broad and unclear. Meta labeled it “ineffective,” while TikTok argued that the definition of social media was too expansive, potentially encompassing nearly every online service.

Concerns from youth advocates
Youth organizations, including the eSafety Youth Council, have expressed frustration over being excluded from the legislative process. They argue that young people, as primary stakeholders, should have had a voice in crafting the law.

Privacy Concerns and Global Implications
Privacy safeguards
The law prohibits platforms from compelling users to provide government-issued identification, such as passports or driver’s licenses, or to use government-based digital identification systems.

Global attention on Australian law
As the strictest legislation of its kind, Australia’s social media ban sets a precedent that other nations may follow. However, critics warn it could conflict with international regulations and human rights treaties.

Future Implications
Australia’s social media ban for under-16s represents a bold step in regulating digital spaces for children. While it addresses valid concerns about online safety, the legislation faces significant challenges in implementation and criticism from tech firms, privacy advocates, and youth organizations. As the government works to refine its approach, the law’s success will likely depend on balancing enforcement with safeguarding user privacy and involving all stakeholders in meaningful dialogue.

SkyCity Entertainment Group, the listed casino and hotel giant, has reported a net loss after tax of $143.3 million for the financial year ending June 30, 2024. The company, citing a challenging operating environment marked by a soft economy and regulatory issues, experienced significant financial headwinds both in New Zealand and Australia. New Chief Executive Jason Walbridge, who took over last month, highlighted the impact of cost-of-living pressures and various regulatory matters on the company’s performance. Despite the setbacks, SkyCity remains focused on a major transformation programme to de-risk its business and ensure compliance with regulatory requirements.

Minimal Revenue Growth, But Significant Financial Impacts
SkyCity Entertainment Group's group revenue increased by a marginal 0.3% to over $900 million for the year. However, the underlying group net profit after tax came in at $123.12 million, reflecting a decline primarily due to accounting adjustments. These included an A$86.2 million impairment on SkyCity Adelaide and a $129.6 million tax adjustment related to recent changes in tax law.

The company’s net loss, which stood at $143.3 million, was exacerbated by these accounting hits. The tax adjustment, flagged earlier this month, was a significant factor in the final reported figures.

Dividends Suspended Until 2026, Transformation Underway
SkyCity has suspended dividend payments until 2026, citing the difficult economic environment and the financial strains caused by the company’s recent performance. This suspension extends to FY25, during which no dividends are expected to be issued.

At the same time, SkyCity is embarking on a major transformation programme aimed at de-risking the business and ensuring better compliance with evolving regulatory frameworks. Walbridge emphasized the company's commitment to building capability and aligning its operations with stricter regulations, a crucial step as the company navigates heightened scrutiny in both New Zealand and Australia.

Regulatory Challenges and Business Adjustments
SkyCity is grappling with multiple regulatory challenges, including an agreement to shut its Auckland casino for one week next month. This closure is part of a deal with the Department of Internal Affairs, following breaches of the company’s own host responsibility programme. One particular incident involved a gambler at SkyCity’s Auckland casino who spent more than nine continuous hours playing without staff intervention. The casino will close from Monday, September 9 to Friday, September 13, though associated restaurants and tourist attractions will remain operational.

The company has faced similar issues in Adelaide, contributing to a downgrade in its earnings expectations for the 2024 financial year and further complicating its recovery efforts.

Ongoing Projects: New Zealand Convention Centre and Horizon Hotel
Amid its challenges, SkyCity is making preparations for the opening of the New Zealand International Convention Centre, a major project expected to enhance the company’s profile in the events and hospitality sector. Additionally, the company is navigating the regulation of online casino gambling in New Zealand, which presents both opportunities and complexities as the country’s gambling framework evolves.

The delayed opening of the new Horizon Hotel, combined with ongoing issues at SkyCity Adelaide, has contributed to financial pressures. The company’s ability to deliver on these high-profile projects while managing its existing obligations will be critical to its recovery.

Future Earnings Guidance and Financial Obligations
Despite the challenges of FY24, SkyCity has reaffirmed its previous FY25 earnings guidance, projecting underlying group EBITDA of between $245 million and $265 million. This forecast indicates the company’s confidence in stabilizing its operations, even as it navigates difficult market conditions.

However, the company has also been hit by additional financial obligations. Following a recent Australian court decision, SkyCity is now required to pay an additional A$10.3 million in casino duty by January 2024. This ruling, which pertains to an appeal between SkyCity’s Adelaide unit and the Treasurer of South Australia, adds to the company’s financial burden.

Outlook: Managing Risks and Rebuilding Confidence
SkyCity Entertainment faces a critical period as it works to rebuild confidence among investors and customers. The company’s suspension of dividends and regulatory challenges reflect the difficult environment in which it operates, while the new leadership under Jason Walbridge seeks to stabilize the business. The upcoming transformation programme, along with the development of major projects like the New Zealand International Convention Centre, are key to the company’s long-term recovery.

At the same time, managing financial obligations, improving regulatory compliance, and navigating external pressures will be essential to restoring profitability and maintaining investor confidence. While SkyCity has reaffirmed its future earnings guidance, the challenges ahead remain significant.

New Zealand has escalated its ongoing dairy trade dispute with Canada, triggering mandatory negotiations under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) framework. This step follows a Panel of Arbitrators ruling in September 2023, which found that Canada breached its trade obligations by restricting New Zealand’s dairy exports. Trade and Agriculture Minister Todd McClay announced that despite the ruling, Canada has failed to comply, prompting New Zealand to formally request negotiations. The negotiations must begin within 15 days of the notification, as stipulated by the CPTPP’s dispute settlement process.

New Zealand Seeks Fair Treatment for Dairy Exporters
New Zealand’s request for formal negotiations stems from Canada’s failure to comply with the September 2023 ruling that determined Canada had violated its CPTPP obligations by blocking New Zealand dairy exports. According to Trade and Agriculture Minister Todd McClay, New Zealand expects its trading partners to honor the commitments outlined in trade agreements, ensuring that its exporters receive fair and equitable treatment. “Canada is not doing that with respect to the dairy quotas that were negotiated and agreed upon with New Zealand,” McClay stated, emphasizing that the issue pertains to Canada’s refusal to uphold its end of the agreement.

The matter has now progressed to a formal stage, where New Zealand is demanding that Canada open its markets in accordance with the agreed dairy quotas, a key element of the original CPTPP negotiations.

Mandatory Negotiations Under the CPTPP Framework
Under the CPTPP’s dispute settlement framework, the notification by New Zealand triggers a requirement for mandatory negotiations to begin within 15 days. This process aims to resolve trade disputes between member countries without escalating to more severe trade penalties. The move is seen as a formal step toward compelling Canada to abide by its trade obligations and address the concerns of New Zealand’s dairy exporters.

The CPTPP agreement, a trade pact between 11 Pacific Rim countries, is designed to promote free trade and investment across key industries, including agriculture. The dairy sector, a crucial part of New Zealand’s economy, benefits significantly from the free-market access promised under the CPTPP, which is why the current impasse with Canada is particularly contentious.

Canada’s Dairy Quota Restrictions: A Breach of Trade Obligations
The Panel of Arbitrators ruling in September found that Canada had breached its obligations by imposing unfair restrictions on New Zealand’s access to the Canadian dairy market. These restrictions specifically related to dairy quotas, which limit the volume of dairy products that can be exported to Canada. The quotas were a key aspect of the CPTPP negotiations, and New Zealand argues that Canada’s failure to adhere to these quotas has unfairly disadvantaged its exporters.

By blocking New Zealand dairy products, Canada has effectively undermined the spirit of the CPTPP agreement, which seeks to ensure fair and reciprocal trade among its member nations.

New Zealand’s Pursuit of Compliance and Market Access
New Zealand is determined to ensure compliance with the CPTPP agreement and protect the interests of its dairy industry. Minister McClay underscored New Zealand’s commitment to using all available mechanisms within the trade agreement to secure fair access to the Canadian market. He reiterated that the government’s priority is to safeguard the livelihoods of New Zealand exporters, many of whom rely heavily on the dairy sector’s international market access.

The formal negotiations that will soon begin are part of New Zealand’s broader strategy to hold its trade partners accountable and ensure the rules-based international trading system functions as intended. New Zealand remains hopeful that a resolution can be reached without further escalation but is prepared to take additional steps if necessary.

What’s at Stake for New Zealand’s Dairy Industry?
The New Zealand dairy industry, which is a cornerstone of the nation’s economy, relies on international trade agreements like the CPTPP to ensure access to key global markets. Canada’s restrictions on dairy exports have created a significant barrier to market entry for New Zealand dairy producers, affecting their revenues and growth opportunities.

With consolidated dairy exports forming a substantial portion of New Zealand’s export economy, securing unhindered market access is essential. This dispute with Canada, if not resolved, could have lasting implications for New Zealand’s broader trade relationships within the CPTPP and beyond.