NZ Proposes Law Change for Online Lottery Sales
The New Zealand government has opened a public consultation on a proposed law change that would allow lotteries to operate remotely.
With the new proposed law, the government aims to make remote lottery operations permanent. (Source: Kerin Gedge, Unsplash)
LISTEN TO THIS ARTICLE:The legislative amendment aims to exempt lotteries from the remote gambling prohibition clause under the New Gambling Act 2003. Contained in Section 9, the rule prohibits "gambling by a person at a distance by interaction through a communication device."
However, In 2021, during the COVID-19 pandemic, New Zealand's gambling law was updated to permit certain remote gambling activities for Class 3 license holders, ensuring they could continue fundraising.
While lotteries were covered in the update and allowed to operate remotely, the exception is temporary and scheduled to expire on October 31, 2024. However, with the new proposed law, the government aims to make remote lottery operations permanent.
The legislative framework recognizes Class 3 license holders, including lotteries, as gambling operators who conduct gambling activities without machines to raise funds for charities and non-commercial purposes. With the permanent exemption, lotteries can continue advertising freely and accepting online payments.
Currently, only three entities can permanently operate remote gambling in New Zealand: the state-owned Lotteries Commission (Lotto NZ operator), providers authorized under the Racing Industry Act 2020, and licensed lotteries operating outside New Zealand's jurisdiction.
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The draft law in consideration proposes adding a new exemption to allow Class 3 licensed operators to conduct lotteries remotely.
The public has until 11:59 p.m. on Thursday, September 19, to provide feedback. The deadline is driven by the Governance and Administration Committee's obligation to report back to the House of Representatives by October 10.
Consultation on Gambling Harrm Strategy
Recently, New Zealand launched a similar consultation period for the public to express their views and help formulate a three-year strategy to reduce gambling-related harm. The authorities plan to promote a thriving regulated gambling sector while prioritizing safeguards to prevent and mitigate harm to vulnerable community members.
The consultation period was preceded by the government's announcement in July, stating its intention to establish a licensing framework to oversee and regulate its online casino market by 2026.
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