New Zealand rules Polymarket and Kalshi are Illegal

[Wandering Eyes]

New Zealand authorities have declared that prediction market platforms Polymarket and Kalshi are operating illegally under the country’s gambling laws.

The Department of Internal Affairs (DIA), which oversees gambling regulation, has determined that these services fall within the legal definition of gambling because they allow users to place money on the outcome of real-world events. Since neither company holds approval to offer wagering services in New Zealand, their operations are considered unauthorised.

Under current New Zealand legislation, TAB New Zealand remains the only provider legally permitted to offer online sports and racing wagering. Any other offshore platforms offering similar services are prohibited unless specifically licensed.

While Polymarket and Kalshi have argued that their products are more similar to financial trading or investment markets, regulators have rejected that distinction, saying the activity still involves staking money on uncertain outcomes — a key feature of gambling.

Although the DIA has reportedly made its position clear, the platforms have not yet been formally served with enforcement notices. At this stage, the websites are still accessible from New Zealand, meaning users can continue to visit them until further regulatory action is taken.

The decision comes as New Zealand continues broader discussions around online gambling regulation, including proposed legislation that could introduce a licensing system for online casino operators.

New Zealand’s Online Casino Gambling Bill has recently cleared a key parliamentary committee stage and is now headed to debate and a vote in the full Parliament. If passed, the bill would create New Zealand’s first regulated licensing regime for online casino operators, replacing today’s largely unregulated offshore market.

The legislation is designed to allow up to 15 licensed online casinos to operate legally in New Zealand and would include a range of consumer protections, harm minimisation rules, and enforcement measures against unlicensed operators.

The committee’s recommendations also reflect strong public input on protecting community funding streams, leading to proposals that a portion of revenue from licensed online casinos be ring-fenced and returned to local community groups and organisations through existing structures such as the Lottery Grants Board.

Under the current timeline, the bill could complete its remaining legislative stages by the middle of the year, with licensing and regulatory frameworks rolled out in phases and a full regulated online casino market expected by December, with licences to be awarded.

From 1 June 2027, only operators which hold a licence will be allowed to operate in the New Zealand online casino market.

Among those expected to apply for multiple licences are Entain Australian & New Zealand with CEO Andrew Vouris suggesting buying up several licences would be valuable to the company’s long-term strategy.

“We’re going to be the only operator in the market that’s able to offer sports, racing, and potentially casino. That is massive,” Vouris told the Australian Financial Review.

Entain operates 15 brands in other parts of the world, including BetMGM, PartyCasino and Gala Casino.

SkyCity Entertainment Group has also expressed its interest in bidding for a licence, with the company recently celebrating 30 years of operation in New Zealand.

“Gaming is evolving in exciting ways, bringing together the best of in‑person and digital experiences,” commented SkyCity CEO Jason Walbridge.

“While we aim to lead this change, our priority is ensuring our customers and communities are protected. Any move into a regulated online market would be built on strong consumer safeguards and SkyCity’s enduring commitment to responsible gambling, so the experience remains safe and enjoyable for everyone.”

SkyCity and Christchurch Casino have both already entered the online gambling market by operating offshore through Malta-licensed online casino platforms, allowing them to offer services to New Zealand players despite online casinos not yet being formally regulated under New Zealand law.

SkyCity runs its online casino through the domain skycitycasino.com, while Christchurch Casino operates via christchurchcasino.com, both relying on the Malta Gaming Authority framework rather than domestic oversight.

These arrangements have enabled the brands to capture local online demand, but they also sit in a grey area where New Zealand consumer protections, harm-minimisation rules, and tax benefits are limited compared with what a fully regulated NZ licensing regime would provide.

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