Critics are concerned the government’s first steps into regulating online casinos won’t do enough to protect addicts and young people from savvy offshore operators.

Internal Affairs Minister Brooke van Velden announced last week the Government is going to auction off licences for online casinos. Until now there has been no regulation of online gambling – except for Lotto and the TAB.

Legal online casinos will be taxed and allowed to advertise their products, which was previously banned.

A select committee will hear submissions on the proposals and the new regime won’t be in place till 2026.

New Zealanders spend around $2.7b a year in regulated gambling – but the total spent on online casinos is unknown. Westpac recorded its own customers spending nearly $137m in just three months last year on online gambling – half of that was with TAB and Lotto – but the rest was with unregulated online casinos. And just two percent was spent at physical gambling sites.

Those in the gambling addiction sector say regulation is desperately needed, but they fear the government’s approach focuses too much on the tax take, and not enough on protection from harm.

Internal Affairs Minister Brooke van Velden speaks to Paddy Gower about the proposal, and he also speaks to Maria Bellringer, the director of AUT’s Gambling and Addictions Research Centre and Cath Healey is general manager at Hawke’s Bay’s Te Rangihaeata Oranga – Gambling Recovery Service.