Casino Industry In New Zealand: Market Size & Trends 2024-2029
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The casino industry in New Zealand has witnessed significant growth over the past few years, driven by four land-based casinos and a unique online gambling market.
Although iGaming is yet to be regulated in the country, current legislation gives offshore gambling operators the chance to offer their products to consumers in New Zealand. Most developed countries have already legalised online gambling with New Zealand being one of the few exceptions.
Yet, with favourable regulations and a growing interest from international gambling operators, New Zealand's casino sector is ready for continued expansion from 2024 to 2029.
The casino industry in New Zealand is driven by technological advancements, regulatory changes, and increasing consumer engagement. Both land-based and online gambling sectors offer opportunities, ensuring an evolving market landscape. This overview explores the casino industry’s current market size and projects future trends from 2024 to 2029.
Land-Based Casinos in New Zealand
Like in its neighbouring country Australia, gambling is a popular leisure activity in New Zealand, with the country’s four land-based casinos giving New Zealanders of 20 years and older the opportunity to enjoy entertainment and games of chance such as table games and pokie games.
Auckland is home to the country's largest city and also hosts the nation's biggest casino. There are a total of four land-based casinos in New Zealand, primarily operated by SkyCity Entertainment Group, a local gambling operator that owns the majority of these gaming venues.
These casinos offer diverse gaming options and attract both local and international tourists, contributing significantly to the economy. As of 2023, land-based casinos accounted for approximately 45% of the total gaming revenue in New Zealand.
Online Gaming Regulation in New Zealand
While online casino sites are widely accessible, online gambling is prohibited under the Gambling Act of 2003. The law permits only state-owned entities to offer a small selection gambling products within New Zealand, with lottery’s offered by Lotto NZ and sports betting marketed by TAB.
However, it is not illegal for New Zealand residents to participate in online gambling through offshore platforms, a scenario that benefits both players and foreign operators. These offshore services are predominantly based in Europe and the Caribbean holding licences in countries such as Malta, Gibraltar, Estonia and Curaçao.
This explains why SkyCity is available in New Zealand with an online casino that uses a Malta licence. Current regulations force the New Zealand company to operate from a different country.
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Offshore Offered Pokie Games
Online casinos from predominantly European countries as well as crypto brands from the Caribbean have started to launch their websites in New Zealand, some of them adapting their platforms to the local market.
Most casino bonuses and banking methods are now offered in New Zealand Dollars whilst lexicon follows local usage referring to slot machines as pokies. As a result, consumers in New Zealand are able to enjoy the same pokies as players from countries like the UK, Australia, and Canada with the difference being that iGaming is legalised in those countries whilst it is not in New Zealand.
Current Market Size
In recent years, more and more international gambling operators have moved their attention to New Zealand. As of 2023, the New Zealand casinos and gaming sector recorded total revenues of $1.9 billion, reflecting a compound annual growth rate (CAGR) of 3.3% since 2018.
The lotteries segment alone accounted for 44.5% of the sector's total value, highlighting its significant contribution. New Zealand also held a 2.7% share of the Asia-Pacific market in 2023. The market has experienced a steady growth rate, with a compound annual growth rate (CAGR) of 4.2% from 2018 to 2023.
Market Size and Trends 2024-2029
Expected is that international brands will continue to launch their brands in New Zealand whilst the market will also open up to domestic gambling operators in the next few years.
The New Zealand casino market is therefore projected to grow to a total value of NZD 3.1 billion by 2029, with a CAGR of 5.2% over the forecast period. This growth will be driven by advancements in technology and favourable regulatory changes.
●Expansion Of Online Gambling: The online gambling sector is expected to see significant growth, potentially capturing 60% of the total market by 2029. Innovations such as mobile gaming apps and the interactivity delivered by live dealer games will make online casinos the first sought after option for casino games, even before the country land-based casinos that are expected to focus on other forms of leisure such as food & dining, music events and other entertainment.
●Regulatory Adjustments: Anticipated regulatory changes will likely provide a more structured and safer environment for online gambling, enhancing player confidence and market stability. Industry experts have appealed for regulating iGaming in the country to offer better player protection on the one hand and get the most out of this billion dollar industry via taxes and other financial contributions.
●Land-Based Casinos: Brick and mortar casino venues are expected to maintain steady growth, contributing around 40% of the total market value by 2029. The country’s biggest casino operator, SkyCity, has been under siege due to disputes with the country’s Department of Internal Affairs (DIA) and Australia’s gambling authority Austrac, and will need to stabilise its activities in order to do so.
●Lotteries: Continuing to be a significant contributor in the country, with modest growth expected over the forecast period. Lotteries in other countries have quickly moved from physical sales to online sales and will need to use technological advancements in their favour to move along with consumer’s changing preferences.
