Thanks to constant innovation, the New Zealand online gambling industry is still growing. We’ve seen brands expanding their gaming repertoires and implementing new marketing strategies to sustain the upward trajectory. A good example of a new incentive would be casino free chips bonuses that you can find on free chip no deposit NZ list by Casino Analyzer. A type of promo that’s universally appealing since users get to gamble risk-free. This is but one example of course, and there are no deposit bonus codes NZ or similar offers that truly boost user acquisition.
But it’s not just bonuses, NZ online casinos have a lot of moving parts, and external factors also play a role in their success. This article aims to understand how gambling operators are developing the NZ casino industry. We will also tackle the economic state and social impacts on the country.
The growth of gaming industry in NZ
According to the statistics, the total spending in New Zealand in the period of 2022/2023 was equal to NZD 2.7 billion. In addition, the forecast of the online gambling market reveals that the revenue will rise up to USD 1.25 billion by the end of 2024. Although local providers such as Lotto NZ and TAB remain relevant and popular, offshore casinos and betting sites still have superior gaming options.
This growth has been driven by mobile technologies as around 80% of New Zealand’s population own smartphones. As a result, the shift to digital entertainment was fast and smooth in this part of the world. The tech literacy and infrastructure made New Zealand a fertile land for digital entertainment businesses. If you pair that with the suitable social and economic status of the citizens, which we will discuss later on, you get a great combo.
The impact on entertainment
Other forms of entertainment, like streaming, video games, and social media sites, have a strong symbiosis with online gambling. This has opened up possibilities for cross-promotions, new outreach channels, and influential brand ambassadors. Additionally, it has led to the creation of new gambling content, like skin-betting that’s tied to popular video games.
Furthermore, consumers have become more comfortable with online purchases or microtransactions. In fact, many brands have designed their business models around it. For example, players can play low-risk poker or buy virtual credits with a simple mouse click, making gambling very available. These New Zealand gambling trends are similar to other digital entertainment industries’ monetization strategies like in-game purchases in mobile games.
How gambling impacts people and industry
It’s worth pointing out that gambling has its social costs. Around 186,000 New Zealand individuals are negatively affected by gambling. Of these, about 61,000 people suffer moderate to significant harm, with an additional 125,000 at high risk of developing more severe problems. That being said, problem gamblers are a major source of industry income. They spend 30% of their losses in gambling according to New Zealand reports.
In the same way, the change in the gambling arena to NZ gambling market has triggered a rise in advertising and sponsorship. New Zealand’s major sporting competitions and events have begun to have logos of online companies. These logos have effectively mainstreamed gambling. For instance, TAB Rugby has helped the company to gain increased prominence among rugby lovers. While offshore platforms focus on increasing the local audience by using specific internet marketing strategies.
Technological drivers in the industry
We’ve already mentioned how smartphones prompted the success or adoption of iGaming, but there are other innovations that played an important role. The use of blockchain and cryptocurrencies is now widespread, which makes them more secure and anonymous than before. Virtual reality (VR) and augmented reality (AR) are also coming through. They guarantee to provide gaming experiences that are similar to the physical venues.
In addition, the increased use of artificial intelligence (AI) and data analysis is changing how sites operate. Individual approaches, variable coefficients, and game models improve the audience’s experience. On top of that, machine-learning tools enable gambling operators to identify and prevent at-risk behavior. These innovations not only draw tech-savvy users but also create the basis for subsequent changes in the industry.
Social and economic status
The emergence of online gambling brings both benefits and challenges to New Zealand. The good news is that an average household has more than $39,000 in disposable income. This means Kiwis can afford some losses without endangering their financial well-being. However, the government still needs to offset the negative impact of gambling through various investments:
- Recovery facilities
- Help centers
- Education on the dangers of gambling.
Luckily lottery, betting, and casinos taxed by the government rake in significant profits. On top of that there is a campaign to add tax duty to offshore brands as well. Current estimates suggest that New Zealanders spent NZ$332.6 million playing on these sites. With the proposed 12% tax duty on offshore businesses, the government can generate $179 million per year.
New Zealand’s prospects of online betting
If we look at the current developments the future of online entertainment looks positive. That said the government plans to pump breaks on some of the developments. Recently they’ve announced that the number of available licenses for online casinos will be reduced and that certain ads will be banned.
There were also talks to legally ban access to foreign betting sites, in order to maintain TAB’s dominance. In other words, future development will be determined by the changes in policies and how they are enforced.
Please play responsibly. For more information and advice visit https://www.begambleaware.org
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