The Problem Gambling Foundation says overseas gambling site operators are flouting New Zealand laws preventing gambling advertising. Advocacy director Andree Froude told RNZ’s Morning Report that the foundation wants stricter restrictions on advertisements as New Zealand prepares to introduce licensed online casinos.
Froude said sites were using social media, inducements and tagging to build awareness and draw users in, and restrictions were not working. “They’ve been using even tagging on buildings and walls to promote their offshore sites. They’ve been using influencers. So, they’ve been getting around our laws and flouting our laws for years,” she said.
Ads reached phones after searches for help
On Friday, a former problem gambler told RNZ that ads for illegal online casinos continued to reach the phones of recovering addicts. Other people said they had been offered bonus cash to entice them back after not betting for a couple of days. Some received large amounts of gambling-related advertising after Googling for a gambling harm organisation, despite never having accessed a gambling site.
Froude said the current rules were confusing because different Acts applied to different things. “But currently, they are not allowed to advertise to New Zealanders and with the TAB and Lotto, they don’t have any rules or very minimum rules around advertising,” she said. “That’s all governed by the Advertising Standards Authority.”
New rules from June 2027
Last week, 11 entities successfully bid to apply for the 15 online casino licences, with the final auction price at $15 million per licence. Offshore operators that did not obtain a licence and have been trading in New Zealand have been told to cease operations by 1 December.
According to NEXT.io, new advertising regulations will apply from June 2027 when the licences become active and will be overseen by the Department of Internal Affairs. Until then the Advertising Standards Authority handles gambling advertising matters. The foundation has been in discussions with the DIA so that this split does not prevent joined-up enforcement.
Froude said the licensing process should consider whether operators have broken New Zealand law. “These operators have proved that they haven’t been compliant with laws, so why should we be giving them a licence?” she said.
Froude wants a full prohibition: “Advertising works, we know that. That’s why these companies spend so much money on it. But if we’re really serious about preventing harm, then we need to prohibit gambling advertising.” Froude said the World Health Organisation agreed with that position.
In a statement to RNZ, Entain, which runs TAB and Betcha, said it operated under strict rules and invested significantly in safer gambling tools and age controls.