Online casino operators could be fined up to $5 million if they set up an unlicensed website under new rules being introduced.
Under the scheme, the government would issue just 15 licences at any time and maintain a public register of approved brands.
Rule-breakers would be issued take-down notices and referred to overseas regulators, putting them at risk of losing their licence in other countries.
Licensed operators would be required to have harm prevention strategies and an acceptable age verification system in place. They would also be banned from advertising to children.
Currently, online casino gambling is unregulated in New Zealand. Internal Affairs Minister Brooke van Velden said that meant they were not subject to requirements to protect consumers.
"My goal is not to increase the amount of gambling that is happening online, but to enable New Zealanders who wish to play casino games online to do so more safely than they can today," van Velden said.
"Currently, New Zealanders can and do gamble on thousands of offshore gambling websites. By introducing a regulatory system, my intention is to channel customers towards up to 15 licensed operators."
Van Velden said legislation would be progressed next year, with the new regulatory system in place by early 2026.
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