The offshore crypto casinos fall outside the New Zealand gambling framework because the Gambling Act of 2003 does not apply to crypto casinos. The Act states that only the government-operated casinos can conduct online gambling services from New Zealand. This leaves private crypto casinos in a regulatory void.
Market research shows Kiwi players use international gambling casinos while Parliament works on new legislation in 2026. With a growing number of players and new laws on the horizon, New Zealand’s gambling regulators and the online casinos they cannot regulate will be tested.
As New Zealand’s laws do not regulate certain areas of offshore cryptocurrency casinos, and with current New Zealand laws, offshore casinos do not have to abide by New Zealand laws offer online gambling services, while New Zealand residents are, legally, able to participate on those sites. New Zealand’s gambling habits have changed with the advancement of digital technology.
Rise of Cryptocurrency Gambling in New Zealand
Within the online betting ecosystem, the use of digital currencies as a method of transaction is growing, even in markets where no specific regulations for crypto casinos exist. In New Zealand, due to legislation governing remote interactive gambling services, the actual demand for online casinos is directed towards international crypto gambling sites, where crypto payments, as well as more traditional payment options, are accepted.
Statista’s 2025 speculation states that approximately 31 per cent of New Zealand’s adult population participates in online gambling, which includes online gambling transactions at sites that are not legally authorized to perform crypto transactions.
Affiliate marketing campaigns and enticing promotions such as NZ casino free spins and no-deposit bonuses are a common sight as they are used to attract new players and keep existing players actively playing at offshore casinos. Sites that accept crypto payments use similar marketing techniques as traditional online casinos to attract players to use their sites. This creates a large gap in oversight as crypto payment accepting online casinos fall outside the jurisdiction of any single government.
As digital assets become increasingly popular in New Zealand, it can be assumed that a segment of the population could be interested in crypto-based gaming. A 2024 report by Finder New Zealand showed that New Zealanders aged 18 to 70 owning cryptocurrency was 14% of the surveyed population. This figure can be considered a crypto-offshore gambling potential player market in New Zealand.
Legal Ambiguities Surrounding Digital Casinos
Offshore crypto casinos in New Zealand can operate legally, thanks to the ambiguity of the laws. As per the Gambling Act of 2003, there are a number of restrictions for services beyond the border, and remote interactive gaming has also drawn provisions, meaning that, unless legally sanctioned, any form of remote interactive gaming can be done. New Zealand offshore crypto casinos do not fall under the protective range of New Zealand gambling laws, which are not designed to protect the residents from themselves.
Both players and operators are impacted by this legal separation. Offshore platforms are unable to legally advertise and target New Zealand media or New Zealand customers. However, through international domain targeting and affiliate marketing, they are able to reach New Zealand players. This situation creates a challenge for New Zealand law enforcement to protect consumers and resolve disputes involving foreign operators and local players.
Legislative focus is currently directed to the Online Casino Gambling Bill, which was introduced in 2025, and will create a licensing system for online casino operators who wish to target New Zealand customers. The government has suggested that once the bill is passed and operational, up to 15 licenses may be issued, including for online and crypto casinos.
This means that potentially for the first time, there will be consumer protection and responsible gambling regulations, along with taxation and regulatory control for gambling businesses. The grey remains until this law comes into force.
Risks and Benefits for Players and Operators
Digital assets for wagering are becoming preferable for players’ wagering because of ease of use. On some sites, players can use cryptocurrency and complete a transaction in a matter of seconds. Some players have also reported less time for the clearing of deposits and withdrawals. According to the H2 Gambling Capital Report, in 2025, online casinos in the Oceania region experienced over a 20 per cent increase in the use of crypto adoption, indicating a positive response for the use of crypto by customers.
Though players have reported positives to use of crypto and other digital assets for wagering, there are risks as well. There are also no regulations in New Zealand regarding customer protection for offshore crypto casinos. Players’ funds may be withheld by the casino as a result of unfair terms, and there is no protection from dispute resolution regarding the unfairness of the terms. There are no formal channels for New Zealand players to address their concerns.
The regulators are also concerned about the offshore sites because the sites may be involved in financial crimes. Here, the players’ use of crypto for wagers can be viewed as a potential mechanism for money laundering, and the laws in New Zealand that offshore sites are required to follow may address the financial crimes through regulatory oversight.
Future Prospects for Regulation and Player Protection
New Zealand’s online casino regulations could resemble something completely new by the end of 2026. At present, regulations do not apply to crypto casinos. However, the reforms are based on consumer protection and the positions of digital assets within gambling laws. The extent to which these changes will address harm, accountability, or player activity is uncertain, but they do indicate changes to the country’s gaming laws.
With the changes in legislation, all parties involved will have to assess the effects of the country’s first gambling regulations regarding licensing, regulatory/compliance, and enforcement to determine the position of crypto gambling in New Zealand’s regulated gambling environment.
