Foreign Firms to Dominate as Government Auctions Online Casino Licenses
New Zealand is preparing for a major shift in its gambling industry as the government moves to auction 15 online casino licenses to foreign companies starting February 2026. This landmark decision will regulate the online gambling sector for the first time, positioning New Zealand among the last developed nations to implement such oversight.
Internal Affairs Minister Brooke van Velden confirmed expectations that international gambling powerhouses will likely secure most licenses, creating ripples across the country’s established gambling ecosystem.
“We don’t have a huge online gambling market, so I would expect that it’s mainly offshore providers,” van Velden told reporters. She emphasized that the licenses, valid for three years, are not permanent arrangements: “If someone is a bad operator, DIA can always revoke their license.”
Community Funding Crisis Looms as Profits Head Offshore
Unlike traditional gambling operators such as Lotto, TAB, and local pokies venues—which must distribute profits to community initiatives—the new online license holders will face no such obligations. This stark contrast has ignited fierce criticism from domestic gambling stakeholders.
Martin Cheer, managing director of Pub Charity Ltd, which operates approximately 1,700 pokie machines generating $125 million in revenue, expressed profound disappointment with the arrangement.
“Effectively, in Class 4, 100 percent of all profits have to be given away. Well, in this instance, none of it has to be given away,” Cheer stated bluntly. “So instead of the local ambulance service or coast guard or the local footy team getting some money, it’s going to offshore shareholders.”
He didn’t mince words about the economic impact: “You can’t get any more perverse than sending your money off to some Russian-Croatian shareholder: basically never seeing the light of day in New Zealand again. That’s what I call perverse.”
Domestic Operators Push Back Against “Open Market” Approach
Documents obtained through the Official Information Act reveal significant opposition from established local gambling entities. Sky City Casino advocated for restricting the market to just five licenses, limited to companies with domestic presence—a position Minister van Velden dismissed as self-serving.
“They are looking out for themselves, right? I’m not here to look out for Sky City,” van Velden countered. “I’m here to ensure that we have a fair marketplace and a fair, regulated market.”
Meanwhile, TAB CEO Nick Roberts warned Racing Minister Winston Peters that an open market with 10 or more licenses would threaten “established funding streams for racing and sport” and risk “driving gambling profits offshore and delivering worse harm outcomes for Kiwi consumers.”
Balancing Revenue and Regulation
While the National Party had campaigned on generating substantial revenue—projecting a gaming duty of 12 percent would bring in $179 million annually—van Velden significantly downplayed financial expectations, suggesting the new regime might only yield about $13 million extra per year initially.
She maintained that safety, not revenue, drives the regulatory change: “For me, that’s less about how we gather tax and more about how we get the balance right for allowing people to use a legal channel to gamble, while at the same time protecting people from the worst kinds of harm.”
The new legislation will impose fines of up to $5 million on unlicensed operators targeting New Zealand gamblers. License holders will be required to pay GST, a 12 percent gambling duty, and a problem gambling levy—but the absence of community contribution requirements continues to fuel debate about whether this regulatory approach truly serves New Zealand’s interests.
As the February 2026 implementation date approaches, the question remains whether this market liberalization will create a safer gambling environment or simply divert profits from local communities to international shareholders.
Landmark Ruling Challenges iGaming Terms & Conditions
A gardener from Gloucestershire has won her High Court battle against betting giant Paddy Power, securing the full £1.097 million “Monster Jackpot” she was initially shown on screen while playing the Wild Hatter slot game.
The Disputed Win
In October 2020, Corinne Pearl Durber was playing the Wild Hatter slot on her iPad when she triggered the Jackpot Game Round. After spinning the jackpot wheel, her screen displayed she had won the “Monster Jackpot” worth over £1 million. However, Paddy Power only paid her £20,265.14, claiming she had actually won the smaller “Daily Jackpot.”
The company attributed the discrepancy to a “software error” that incorrectly displayed the result. Customer service representatives explained that their Random Number Generator (RNG) had determined she won the smaller prize, citing their Terms & Conditions clause that server records take precedence over screen displays.
The Court’s Decision
Mr. Justice Ritchie granted summary judgment in Durber’s favor without requiring a full trial. In his 62-page ruling, he emphasized that the concept of “what you see is what you get” was central to gambling games:
“Objectively, customers would want and expect that what was shown to them on screen to be accurate and correct. The same expectation probably applies when customers go into a physical casino and play roulette.”
The judge determined that human error in mapping the software had affected 14 plays over 48 days, creating the discrepancy between the RNG result and what was displayed on screen.
Industry Implications
This groundbreaking ruling indicates that operators might no longer depend on extensive Terms & Conditions in comparable disputes.
A spokesperson said: “Forfeiting bonus winnings or refusing a payout because of a technical glitch and then pointing to a clause buried deep in the operator’s terms and conditions essentially puts the onus back on the player and …. that equates to poor customer service.”
Aftermath
A relieved Durber questioned why she had to endure “legal torment” instead of being paid immediately:
“What’s the point in betting if betting companies like Paddy Power won’t pay-up when someone wins a big jackpot?”
Flutter UKI, Paddy Power’s parent company, expressed regret over the case and stated they were reviewing the judgment, noting that they “pride ourselves on fairness” and regularly pay out winners, including a £5.7 million jackpot last year.
One year has passed since North Carolina embraced sports betting, and the state is now reflecting on the significant financial contributions and mixed community reactions that have emerged. Official reports show that since March 11, 2024, residents have placed bets totaling approximately $6.6 billion, channeling substantial funds into state programs and sparking diverse opinions.
Financial Impact and Allocation of Funds
The first year of legalized sports betting has proved financially lucrative, with operators earning $713 million in gross gaming revenue. This economic activity has yielded $128 million in tax revenues for North Carolina, with the funds being strategically employed to bolster community and state initiatives. Among the beneficiaries is North Carolina A&T State University, which received $2.7 million to enhance athlete welfare through nutrition and mental health support.
Tax revenue distribution also includes:
- $1 million annually to North Carolina Amateur Sports to support youth sports development.
- Allocations to collegiate athletic departments across 13 state universities for sports program enhancements.
- $1 million yearly to the North Carolina Youth Outdoor Engagement Commission to subsidize youth sports teams’ travel costs and attract amateur sporting events.
Community and Educational Initiatives
The introduction of sports betting has elicited a spectrum of reactions from the residents. While some, such as Josmar Gil from Greensboro, see the benefits, others, like Manai Mendez, voice concerns about potential adverse effects on individuals with gambling addictions.
To address these concerns, North Carolina allocates $2 million annually to the North Carolina Problem Gambling Programme. This initiative supports a gambling helpline, treatment programs, and educational efforts to promote responsible betting practices. The state has seen a rise in calls to the problem gambling hotline, indicating increased public engagement and need for support services.
Legislative Adjustments and Future Projections
Legislative proposals such as House Bill 14 aim to adjust how gambling winnings are taxed, advocating for a fairer taxation method based on net earnings rather than gross winnings. As North Carolina continues to navigate the complexities of this burgeoning industry, it remains committed to fostering a responsible and profitable betting environment.
Comparative Analysis and National Context
Comparisons with states like Ohio and Michigan, which have similar demographics and betting landscapes, provide a broader perspective on North Carolina’s performance. These insights help in gauging the effectiveness of the state’s strategies and in anticipating future trends.
Conclusion
As North Carolina marks the first anniversary of legalized sports betting, it celebrates the economic gains and takes stock of the social challenges. The state’s proactive approach in managing the industry sets a benchmark for others, balancing economic benefits with responsible gambling practices. Looking forward, continued growth and community enrichment remain high priorities, demonstrating the dynamic interplay between policy-making and public welfare in the world of sports betting.
DETROIT — The Michigan Gaming Control Board (MGCB) has ramped up its crackdown on unlicensed online gambling, targeting five offshore casinos with cease-and-desist notices. These casinos—BetWhale Casino, Black Lotus Casino, Coins Game Casino, Love2play Casino, and Orion Stars 777 Players—stand accused of flouting Michigan’s strict licensing laws, posing significant risks to consumers.
Unlicensed and Unchecked: A Risk to Players
Henry Williams, MGCB’s Executive Director, emphasized the danger these illegal platforms pose to consumers, noting their unreliable withdrawal practices and lack of essential protections. “These illegal platforms not only violate Michigan’s gaming regulations but also put consumers at risk,” Williams stated. The board’s initiative reaffirms its commitment to uphold the integrity of Michigan’s gaming landscape and safeguard its residents.
Legal Framework and Violations
The MGCB’s actions are informed by several state laws:
- The Lawful Internet Gaming Act requires that only licensed operators may offer online gambling services.
- The Michigan Gaming Control and Revenue Act deems operating unlicensed online gambling services a felony, with severe penalties including imprisonment and fines.
- The Michigan Penal Code prohibits any gambling involving consideration, prize, and chance without proper licensing, especially when outcomes are uncertain.
These casinos offer a range of gambling options, from traditional games like slots and poker to sports betting, imposing strict conditions that often require players to wager significant amounts before withdrawing their winnings.
Enforcement and Consumer Advocacy
With a two-week ultimatum set by the MGCB, these operators are urged to halt their illegal operations or face further legal actions, possibly in collaboration with the Michigan Attorney General’s Office. To aid consumers, the MGCB encourages verification of the licensing status of online gambling sites through their official website, which lists all authorized providers.
MGCB’s Ongoing Vigilance and Consumer Safety Efforts
The crackdown is part of Michigan’s broader strategy to eliminate unauthorized gambling operations within the state. This approach not only aims to protect consumers but also to maintain the market’s integrity and promote responsible gambling practices.
“Michigan residents are encouraged to enjoy events like March Madness responsibly,” Williams advised, highlighting the importance of setting limits and acknowledging the risks associated with gambling.
As Michigan continues its vigilant oversight of the gaming industry, the MGCB remains dedicated to ensuring that all gambling activities are conducted legally and safely, safeguarding the interests and well-being of its residents.
Romania is preparing to implement one of Europe’s most ambitious gambling reforms, with a draft bill that would prevent citizens from wagering more than 10% of their previous month’s income on gambling activities. This pioneering approach targets gambling addiction through direct financial restrictions rather than traditional methods focused solely on accessibility.
Comprehensive Oversight System
The proposed legislation creates a sophisticated monitoring framework involving multiple stakeholders:
Financial Institution Responsibility
Banks and payment processors will bear significant responsibility for implementing and enforcing spending caps for gamblers. These institutions must verify that gambling transactions do not exceed the 10% threshold of the customer’s documented monthly income from the previous month. Financial entities that fail to enforce these regulations face severe penalties—up to 1% of their annual turnover—creating strong incentives for compliance.
Real-Time Verification Platform
Romania’s National Agency for Fiscal Administration (ANAF) will develop a centralized verification platform connecting all gambling operators.
The system will allow operators to check a player’s remaining available gambling balance before accepting bets. It will track real-time spending across all gambling venues and platforms, preventing players from circumventing limits by spreading activities across multiple operators. This comprehensive approach ensures consistent enforcement across both digital and physical gambling environments.
The infrastructure represents a significant technical undertaking, requiring seamless integration between tax authorities, financial institutions, and both online and land-based gambling operators.
Dual Enforcement Approach
The legislation implements a two-pronged enforcement strategy:
For Online Gambling
Digital platforms must verify a player’s spending allowance through the ANAF system before processing transactions. Banks serve as a secondary checkpoint, monitoring electronic payments to gambling operators and blocking transactions that would exceed the 10% threshold.
For Land-Based Operations
Physical establishments—including casinos, betting shops, and venues with slot machines—must check patrons’ spending limits through the same verification system. This presents unique implementation challenges for cash-based transactions that traditionally offer greater anonymity.
Escalating Penalties for Non-Compliance
The draft bill establishes a strict progressive penalty system:
- For a first violation, operators will face fines ranging from 200,000 RON ($43,416) to 500,000 RON ($108,540).
- A second violation results in immediate revocation of the gambling license, effectively terminating the operator’s ability to conduct business in Romania.
These severe consequences reflect the government’s determination to ensure universal compliance with the new standards.
Part of a Broader Regulatory Strategy
This income-based spending limit is the latest development in Romania’s comprehensive gambling reform agenda. Previous measures include:
The government implemented a 40% tax on casino withdrawals in 2022, followed by legislation passed in October prohibiting gambling venues in communities with fewer than 15,000 residents. These measures were accompanied by enhanced advertising restrictions for gambling products.
Prime Minister Marcel Ciolacu has framed these efforts as a direct challenge to the gambling industry’s influence, stating: “Right now we are fighting an industry that has a total turnover of €10-12 billion. It is the first law adopted in Parliament in 30 years against this mafia that has controlled the political world until now.”
Setting a European Precedent
If successfully implemented, Romania’s approach could establish a new regulatory paradigm for addressing problem gambling through direct financial controls. Other European nations struggling with gambling-related harm may closely observe Romania’s experience to evaluate the effectiveness of income-based spending limits as a harm reduction strategy.
The draft bill represents a significant shift from traditional gambling regulations focused on venue restrictions and advertising limitations toward a model that directly addresses the financial impact of excessive gambling on individual players.
