New Zealand Government Proposes Law Change to Allow Remote Lotteries

The Government of New Zealand has opened a public consultation on a legislative amendment that would exempt lotteries from a remote gambling prohibition.

Under the current New Zealand Gambling Act 2003, Section 9 prohibits "remote interactive gambling," which refers to “gambling by a person at a distance by interaction through a communication device.”

In 2021, during the height of the COVID-19 pandemic, an exception was introduced to allow specific gambling activities to be conducted remotely by operators holding a Class 3 licence, ensuring their fundraising efforts were not hindered. While lotteries were temporarily included under this exception, the provision is set to expire on 31 October 2024. The new proposed law seeks to make the remote operation of lotteries permanent.

Class 3 licence holders, which include operators conducting gambling without machines, aim to raise funds for charities and non-commercial purposes. With permanent exemption, lotteries would continue to advertise and accept online payments freely.

As it stands, only the state-owned Lotteries Commission, which operates Lotto NZ, and licensed lotteries operating outside New Zealand can conduct remote gambling on a permanent basis. Local commercial lotteries are excluded from this.

The draft legislation proposes adding a new paragraph stating that “class 3 gambling in the form of a lottery conducted by any gambling operator that holds a class 3 operator’s licence” would be exempt from the prohibition.

Public feedback on the proposed changes is expected by 11.59pm on Thursday, 19 September, with the Governance and Administration Committee scheduled to report back to the House of Representatives on 10 October.

Back in July, it was made illegal for unlicensed operators to target players in New Zealand.