NEWSGovernment Says ‘No Deal!’ to TAB’s $150 Million Online Casino Gamble in New Zealand
June 16 2025, Published 1:48 a.m. ET
The proposition by TAB has sent shock waves through the online gambling sphere and raised concerns about the digital wagering landscape in New Zealand after the government rejected the TAB betting range’s $150 million casino proposal. The move came at a time when online gambling is experiencing rapid growth, with more players turning to digital platforms for convenience, variety, and promotional perks.
While TAB's plan aimed to introduce a regulated local option that could compete with offshore casinos, critics feared it would fuel problem gambling and increase risk exposure, especially among younger demographics. This article explores what led to the government's decision, what it means for players, and what could happen next.
High Stakes Rejected as TAB’s Big Bet Falls Flat
New Zealand’s government has declined the Totalisator Agency Board’s (TAB) proposal of NZ$150 million for an online casino platform. Government officials consider TAB to be an important player in the sports and racing betting sphere, but the proposal was turned down due to concerns about the risk associated with regulations and further harm from online gambling.
The TAB proposal came under increased scrutiny due to the public’s limited access to digital betting services. In their 2023 report on gambling harm, the Ministry of Health stated that now, over 10% of adults in New Zealand gamble online every month, a sharp increase since 2018. The rise of foreign casino websites meant for local users has increased pressure on the Government to either control or tighten access to digital gambling.
This rejection for players in New Zealand, leaves them navigating a market dominated by offshore operators, many of which continue to attract users through promotions like free spins and no deposit bonuses. These offers remain popular, even in the absence of local regulation, as users seek out deals that promise more value and fewer barriers to entry.
As described by the Internal Affairs Department, “The proposal did not align with current gambling policy objectives focused on minimization of harm and safeguarding fairness and safety of gambling for New Zealanders.” TAB was looking to set up a government-funded online casino, which would have greatly expanded its presence in a market currently operated by foreign companies.
Inside the Government’s Surprise Move Against Online Gambling
New Zealand users waiting for the TAB acceptance news will be disappointed as nothing changes within the online casino ecosystem for the time being. Lacking regulated domestic online casinos, numerous users turn to foreign websites offering real money gaming, promotional no-deposit bonuses, as well as free spins offers. These offshore sites function outside legal frameworks, lacking many consumer protection standards that are expected from locally registered companies.
The TAB proposition aimed at creating a state-sponsored avenue which could be controlled more tightly compared to existing options, with more regulations associated with responsible gambling. Nevertheless, respondents feared this would result in a more permissive attitude towards gambling. A representative from the Problem Gambling Foundation remarked, “Our concern was certainly that the approval of this licence would further normalise casino-style gambling in New Zealand and increase access, particularly for younger people active in the online environment.”
At present, only two operators — Lotto NZ and TAB — are licensed to provide online gambling services within New Zealand, and both are restricted to their current scope of services. They cannot offer casino-style games.
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Why New Zealand Said No to the $150 Million Casino Pitch
Although TAB’s proposal was framed as an attempt to retain gambling revenues currently lost to overseas sites, the government took a more cautious approach. The Department of Internal Affairs pointed to a lack of public consultation as well as national policy objectives, including the 2003 Gambling Act and policies associated with it, which are aimed at minimising harm.
Estimates from the New Zealand Productivity Commission suggest that over NZ$300 million is spent annually on overseas gambling sites. TAB had argued that his proposal could redirect some of that unspent money into the local economy. In the absence of a complete policy review, however, the risk of unintentional consequences proved too large a barrier.
The authorities’ viewpoint captures deeper issues of gambling harms. A 2024 University of Auckland study noted that over 7.6% of online gamblers reported considerable negative effects on their mental or financial health, representing more than double the figure for offline gamblers.
Internal Affairs Minister Brooke Van Velden confirmed no changes would be made pending the completion of the comprehensive review. “We have to assess the social and economic factors before thinking of increasing online gambling opportunities,” she said.
TAB, for its part, expressed disappointment at the rejection but said it remained committed to working with regulators and maintaining a responsible approach to service betting.
Final Word
By denying the high-stakes casino proposal, the government has put a halt to what could have been one of New Zealand's most transformative gambling market shifts. For now, the waters offshore will remain the only suitable domain for casino-style games, forcing regulators to grapple with the ongoing challenge of how to manage and protect players in a digitally evolving gambling landscape.
With all ideas associated with online gambling being tracked, one thing is for sure: the discussions are ongoing.
