Regulated Markets vs. Rogue Operators in Australia and New Zealand

The online gambling landscape across Australia and New Zealand is changing with great speed, creating new contrasts along the way. In New Zealand, the longstanding operator Tab has made a bid for an exclusive online casino license and has been rebuffed, while in Australia, regulators continue to crack down on unlicensed, offshore gambling websites.

The Battle for Legal Gambling Expansion

In late 2023, New Zealand’s Tab — a well-established brand (very close to a monopoly on sports and race betting) made headlines with a bold proposal to buy an exclusive online casino license for roughly 138 million AU dollars. Tab’s letter to the ministers, which was made public later in 2024, voiced an idea that without access to the booming online casino sector, Tab’s business model was at risk and the delay in giving them a license was costing the company nearly 1.4 million AUD per month in payments from its partner, Entain.

Internal Affairs Minister Brooke van Velden quickly shut the door on the proposal, saying: “Not under my watch,” and emphasizing that government resources should focus on core services rather than facilitating gambling. Racing Minister Winston Peters, who had also received correspondence from Tab, reiterated his refusal to amend the law for the operator.

Legally speaking, New Zealand seems to stand on avoiding the moral and political pitfalls of endorsing online casino gambling, even if that means sidelining a domestic heavyweight.

Australia’s Ongoing Crackdown on Illegal Operators

While New Zealand’s regulators are saying “no thanks” to a potentially lucrative domestic player, Australia is busy cleaning house. The Australian Communications and Media Authority (ACMA) has intensified its efforts to protect punters from unlicensed operators. Over the past few years, ACMA has blocked over 1,200 illegal gambling websites with website-blocking orders to restrict access for Aussie punters. Recent high-profile takedowns include platforms like Crown Slots and Billy Billion, which were found to be operating in clear violation of the Interactive Gambling Act 2001.

ACMA’s strategy isn’t just about blocking websites: it’s a comprehensive approach that includes educating the players and maintaining a public register of authorized wagering services. Regulators warn that even if an online service appears to be legit, unlicensed sites often lack critical consumer protections.

Consumer Protection vs. Market Control

At first glance, the moves in New Zealand and Australia might seem like two sides of the same coin: both governments clearly want to ensure that only well-regulated operators have access to the market, but their methods differ considerably. New Zealand’s decision to block Tab’s bid was driven by a mix of moral and political considerations, and the NZ government doesn’t want to be seen endorsing casino-style gambling.

In Australia, however, the focus is on consumer protection. Regulators are more interested in rooting out unscrupulous, unlicensed operators rather than restricting domestic players from expanding into new markets. ACMA’s enforcement actions remind of a relentless game of whack-a-mole: as soon as one rogue operator is blocked, another is quick to pop up with a flashier veneer but still lacking the essential safeguards that licensed platforms offer.

Both strategies have their pros and cons. New Zealand’s model could foster a more controlled environment with higher consumer protection standards. Yet, it also raises questions about market competitiveness and innovation. Australia’s method of aggressively blocking unlicensed sites, while effective at protecting consumers, requires constant vigilance as new rogue operators continue to test the limits of regulatory enforcement. Both strategies aim to protect punters, but each comes with its own set of challenges.

Looking Ahead

The landscape for online gambling in both countries is set to undergo significant changes. In New Zealand, the auction for online casino licenses is still underway, with several international and domestic operators fighting for a slice of the pie.

Australia’s approach may well serve as an example for other countries grappling with similar challenges. ACMA’s ever-expanding blocklist and its ongoing public education campaigns are aimed at ensuring that punters only deal with licensed and regulated operators. Some industry analysts suggest that this cat-and-mouse game is far from over. They point out that while current measures have successfully pushed around 220 illegal operators out of the market since 2017, the lure of easy money will continue to attract new players to the underground scene. 

As the digital landscape evolves, both governments will need to balance a host of competing interests — from safeguarding vulnerable consumers to fostering a competitive market that encourages innovation and fair play.