New Zealand Bans AI-Generated Celebrity Endorsements as Regulated Online Casino Market Nears Launch
TL;DR — New Zealand is banning AI-generated celebrity endorsements and warning of scam gambling sites as it readies a regulated online casino market with 15 licences. Rules effective in July close prior loopholes on synthetic promotions and impose up to $5 million penalties. The Department of Internal Affairs cited risks of deception and harm to public figures and consumers.
SCCG Take — Operators must treat these AI advertising prohibitions as licence-critical compliance, not optional. The rules set a clear inflection point for how regulated markets will police emerging tech risks.
New Zealand is introducing tighter controls on online casino advertising by banning AI-generated celebrity endorsements and warning the public about fraudulent gambling websites. The moves coincide with preparations to launch a regulated online casino market under which 15 licences will be issued to approved operators. Unlicensed companies will be barred from offering online casino gambling and related advertising once the system is in place.
As reported by Newstalk ZB, the Department of Internal Affairs has noted a rise in overseas cases of gambling operators using AI to create images and videos of public figures without permission. One cited example involved a fabricated promotional video featuring TVNZ presenter Jenny-May Clarkson and an AI-generated version of filmmaker Taika Waititi pushing a gambling app called “Māori Game.” Neither individual had any involvement.
Ben Gamboni, deputy director of gambling at the department, said the agency has seen more AI-generated gambling promotions internationally and wants to prevent the trend in New Zealand. Gamboni stated that people whose likenesses are copied can experience “harm to themselves and their brand.” He also warned that scam sites lure users with attractive promotions, adding “It’s just a scam and a way to get your details, either for identity theft or just to take the money out of your wallet.”
Closing the AI Endorsement Loophole
A February briefing prepared for Internal Affairs Minister Brooke van Velden explained that prior advertising rules did not clearly cover AI-generated endorsements because no real person received payment. The briefing stated these AI endorsements create risks of consumer deception and contribute to gambling harm while normalising gambling in ways similar to human endorsements. Officials further flagged concerns about synthetic influencers that may appeal especially to younger audiences including Gen Z.
The updated restrictions took effect in July. They prohibit sponsorships and endorsements in online casino promotions whether created by AI or real people. Advertising is also banned during live broadcasts and within 30 minutes before or after. From December operators without a licence must stop operating. Breaches of the Online Casino Gambling Act carry civil penalties of up to $5 million. The department has asked the public to report suspect advertisements by sending screenshots for investigation.
The Compliance Imperative Ahead of Licencing
The convergence of these advertising rules with the forthcoming licencing round marks a structural shift that licensed operators must navigate precisely. Client-partners preparing to compete for one of the 15 licences will treat the ban on AI deepfakes and scam-site tactics as a core operational boundary rather than an afterthought. Enforcement attention on consumer deception and brand misuse is likely to intensify as the regulated market opens, making early alignment with the Department of Internal Affairs the clearest path to sustained participation.
Reporting: Casino News Daily
New Zealand just set the global template: AI advertising is a licence-killer, not a grey area to test.
We're tracking 545 partners across every regulated market, and this is the clearest signal yet that AI compliance is now table stakes for entry. New Zealand's 15-licence cap and $5 million penalties mean operators can't afford to treat synthetic media as a creative experiment. This matters because what Wellington does today, other Tier-2 markets copy tomorrow.
- AI-generated celebrity endorsements banned outright; rules close loophole where no real person was paid
- 15 online casino licences available; unlicensed operators face up to $5M penalties from July
- Department cites scam sites using fake celebrity videos to harvest user data and money
SCCG angle: SCCG has compliance specialists and agency partners across ANZ who help operators architect ad campaigns that clear these new AI thresholds before submission. We connect you to the local advisors who've already interpreted Wellington's guidance so you don't burn budget on creative that disqualifies your licence application.