The iGaming industry has been booming in New Zealand for the past decade. With the convenience and ease of technological advancement, Kiwi gamers are opting for iGaming to its land-based counterparts.
The introduction of online gambling has significantly impacted New Zealand’s economy, and it is poised to boost the country’s economy even further in the years to come. Here’s how the ever-growing iGaming sector can benefit New Zealand.
Kiwi gamers are going online
The advancement of technology and the increased availability of high-speed internet have made online gambling more accessible and convenient than ever before. The COVID-19 pandemic has also contributed to this trend, as people spent more time at home looking for ways to entertain themselves.
Moreover, online gamers in New Zealand show high enthusiasm towards the industry. Today, 4 out of 5 Kiwis have played online casinos.
A Newsroom report found that New Zealanders spent $332.6 million on online gambling in 2022, up from $139.3 million in 2014. This suggests that the number of online gamblers in New Zealand is increasing.
Statista’s finding that the average revenue per user (ARPU) in the country’s online gambling market is $2,450 supports this. By 2027, the number of online gamblers in New Zealand could reach 571,700.
From pokies, blackjack, poker, and roulette to live dealer games, there are plenty of online casino games in New Zealand. Sports betting is also now a crucial part of the iGaming landscape. You can bet on various sports, from rugby and cricket to football and international events.
Mobile casino games are also gaining popularity in New Zealand, with 3.82 million downloads in 2022. The revenue from this sector alone is expected to reach $52.54 million by 2027.
With Virtual Reality (VR) and Augmented Reality (AR) integration on the horizon for online casinos, the industry will likely continue growing in the country.
The impact of iGaming
The iGaming industry in New Zealand has a significant economic impact. Licensed iGaming operators contribute to the economy by paying taxes on their profits, which helps fund public services like education, healthcare, and infrastructure development. This helps improve the quality of life for citizens.
At the same time, this opens the way for more job opportunities. Even offshore operators will need administrators, customer support agents, developers, marketing professionals, etc. There is also a rise in demand for creative professionals, such as graphic designers and content creators.
The industry doesn’t grow independently, as it also boosts other sectors beyond the operators, including software development, payment processing, and marketing.
Is it legal?
Although the Gaming Act 2003 prohibits remote interactive gambling (i.e., online gambling) by local gambling operators, offshore operators can legally provide these services to New Zealand residents.
However, this also raises concerns about player protection and responsible gambling. Offshore iGaming platforms must ensure that they adhere to high standards of integrity and compliance to protect New Zealand players from harm.
Unfortunately, you win some and lose some. Although the country allows offshore casinos to offer services, online gambling is still not part of the local economy. This caused the country to lose millions of dollars in potential revenue from the industry. We are still waiting to see if there will be any change in this regulation anytime soon.
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