From Crackdowns to Licences: The Big Online Gambling Stories of 2025

2025 marked a decisive moment for online gambling in Australia and New Zealand. Rather than drifting in regulatory grey areas, both countries took firm, but very different, approaches. New Zealand focused on building a licensed online casino market, while Australia reinforced its long-standing bans through aggressive enforcement and financial scrutiny.

For players down under, these shifts weren’t abstract policy changes. They directly affected which platforms remained accessible, how payments were monitored, and what 2026 is likely to bring. Here’s how the year unfolded.

New Zealand in 2025: Preparing for a Regulated Online Casino Market

For much of the past decade, online casinos operating in New Zealand existed in a grey market. Offshore platforms freely accepted Kiwi players, but without local licences, tax obligations, or enforceable consumer protections. In 2025, that long-standing arrangement began to unwind.

The Online Casino Gambling Bill

The defining moment came in June 2025, when the government introduced the Online Casino Gambling Bill. Rather than legalising online casinos overnight, the legislation established a structured licensing framework to bring offshore activity under domestic oversight.

A key feature of the bill is its market cap: no more than 15 online casino licences will be issued. This was a deliberate move to avoid market saturation and to ensure regulators could realistically supervise licensed operators. Prospective licensees must meet strict standards for player identity verification, harm minimisation tools, advertising restrictions, and technical compliance.

A Deliberate, Phased Timeline

Throughout 2025, regulators repeatedly emphasised that online casino regulation would not be rushed. Rather than flipping a switch, the government opted for a staged rollout designed to balance market entry with effective oversight.

Licence auctions are scheduled for early 2026, with successful operators granted three-year licences. If timelines hold, the first licensed online casinos are expected to launch officially in April 2026.

This extended runway allowed regulators to use the second half of 2025 to refine enforcement mechanisms, draft secondary regulations, and align consumer protection tools with the incoming licensing regime.

Sports Betting Locked Down: TAB NZ’s Monopoly

While casino regulation dominated headlines, sports betting quietly underwent one of its most significant changes in decades. From 28 June 2025, TAB NZ, operated by Entain, became the sole legal provider of online sports and racing betting in New Zealand.

This move effectively shut offshore bookmakers out of the market. As part of the arrangement, Entain made a NZ$100 million payment to support local racing and sporting organisations, reinforcing the government’s aim of keeping gambling revenue within the country.

Enforcement, Penalties, and Player Protection

Regulation in 2025 was not only about creating a licensing framework; it was also about deterrence. Offshore operators targeting New Zealand players now face fines of up to NZ$5 million, a penalty level designed to make non-compliance commercially unviable and discourage unlicensed platforms from continuing to operate in the market.

At the same time, a broader focus on player protection took shape. Mandatory age verification requirements were introduced, online casino sponsorships were banned, and the MyChoice gambling harm app was rolled out to coincide with the future licensed market. These measures were supported by increased government investment in responsible gambling initiatives, signalling a longer-term commitment to harm prevention alongside regulation.

By the end of 2025, New Zealand’s position was clear: offshore casinos would either comply with the new regulatory framework or exit the market altogether.

Australia in 2025: Enforcement Over Reform

Across the Tasman, the story was starkly different. Australia did not move toward legalising online casinos. Instead, 2025 became a year defined by enforcement, disruption, and financial scrutiny.

The Law Stayed the Same, Enforcement Did Not

Online casino games remain illegal under the Interactive Gambling Act 2001, which prohibits online pokies, blackjack, roulette, and poker. That legal position did not change in 2025. What changed was the intensity with which regulators applied it.

ACMA’s Expanding Site-Blocking Campaign

By December 2025, the Australian Communications and Media Authority had blocked more than 1,450 illegal gambling websites, making Australia one of the most aggressive jurisdictions globally in ISP-level blocking.

The pace of enforcement accelerated throughout the year, with regular updates announcing new blocks. Recent actions targeted offshore casinos such as Abu King, Nova Jackpot, and Power Up Casino, reinforcing that site blocking has become a standing regulatory tool rather than a symbolic measure.

Targeting Grey-Area and Crypto Platforms

In July 2025, ACMA broadened its enforcement scope by issuing a formal warning to Polymarket, alleging the platform had offered unlicensed wagering services to Australians.

The warning was notable because it showed regulators moving beyond traditional casino and bookmaker models. Crypto-based, decentralised, and “prediction market” platforms are now firmly on the enforcement radar, regardless of how they brand themselves.

AUSTRAC and the Financial Front

Financial oversight also tightened during 2025. In November, AUSTRAC upgraded its online reporting systems, improving its ability to monitor gambling-related transactions and identify potential money-laundering risks.

More importantly, significant AML reforms for the gambling sector are scheduled to take effect in March 2026. These changes are expected to increase reporting obligations, raise compliance costs, and subject both licensed operators and their payment flows to greater scrutiny.

Casino Sector Fallout

Enforcement pressure was not limited to offshore operators. In 2025, Star Entertainment Group warned that potential penalties linked to AUSTRAC investigations could exceed $100 million, placing the company under severe financial strain and raising the prospect of restructuring or insolvency.

The situation highlighted how Australia’s regulatory crackdown is reshaping the entire gambling ecosystem, not just the offshore segment.

The Numbers Behind the Regulatory Push

Despite stepped-up enforcement, offshore gambling remained deeply entrenched across Australia and New Zealand throughout 2025. In Australia, research suggests players lose around $3.9 billion each year to illegal offshore gambling websites, with projections indicating that figure could climb to $5 billion by 2029 if current trends continue.

In New Zealand, annual online gambling spend is estimated to fall between NZ$500 million and NZ$900 million. Until licensed online casinos go live, the majority of that spending continues to flow to offshore platforms rather than remaining within the local economy.

Together, these figures provided both the economic and political justification for stronger regulatory action on both sides of the Tasman.

Looking Ahead to 2026: What Changes Next

For New Zealand, 2026 is when regulation becomes reality. Licensed online casinos are expected to launch, offshore operators face meaningful penalties, and players will finally have access to locally regulated platforms governed by New Zealand law.

Australia’s trajectory points elsewhere. With expanded AML obligations and continued site blocking, 2026 is likely to bring more enforcement, more scrutiny, and fewer grey-area loopholes, particularly for crypto-based platforms.

Final Word of 2025

2025 was not business as usual; it marked a reset for online gambling on both sides of the Tasman. New Zealand spent the year laying the foundations for a regulated online casino market designed to launch in 2026, while Australia reinforced its position as one of the world’s strictest enforcement jurisdictions through expanded site blocking, financial scrutiny, and regulatory oversight.

For online gambling audiences down under, the contrast is now unmistakable. Whether 2026 delivers legal access or tighter restrictions depends entirely on where you live, but in both countries, the direction of travel is now firmly established.