Entain Flags New Zealand Online Gaming Demand but Cautions on Advertising-Driven Regulatory Risks
Entain estimates New Zealand’s regulated online gaming market could hit NZ$920 million based on grey market activity and expects offshore operators like Stake to convert. Up to 15 licenses are planned, with Entain bidding for three. The operator warns that ad competition among brands risks new restrictions, citing its 2025 TAB experience.
SCCG Take — Clear DIA rules attract entrants, yet advertising discipline is required to prevent backlash that raises CPAs and blurs sports-casino lines. Entain’s multi-license approach signals the need for operators to secure defensive positions ahead of the imminent auction.
Entain sees a substantial regulated online gaming market in New Zealand but has warned that fierce competition among new licensees could trigger advertising excesses and subsequent regulatory tightening.
Andrew Hannan, Entain Australia and New Zealand’s Director, Industry & External Affairs, addressed the issue at the CiG iDEA Summit. He cited the prevalent grey market as proof of underlying demand, stating it could reach NZ$920 million in a couple of years.
“We certainly think so because there already is a market there,” Hannan said. “The grey market is very prevalent. We think it could be up to about NZ$920 million in a couple of years’ time because of the size of the market.”
Hannan added that multiple large operators active offshore are expected to convert their businesses once the market legalizes, pointing to Stake as a prior example. He credited the Department of Internal Affairs (DIA) with setting clear rules on regulation, responsible gaming, and advertising that make the jurisdiction attractive.
Under the existing Gambling Act 2003, New Zealand-based firms cannot offer online gaming to locals except for the TAB NZ racing and sports betting monopoly operated by Entain and the New Zealand Lotteries. Players face no prohibition on using offshore sites, which has sustained the grey market.
The pending legalization targets online casino products including RNG slots, table games, poker, and virtual sports or racing. Up to 15 licenses will be issued, with Entain intending to bid for the maximum three per operator.
Lessons from TAB Rollout Shape Advertising Warning
Hannan drew on Entain’s experience launching its monopoly sports book in 2025 under the TAB brand. A significant marketing increase drew public disapproval, forcing the company to scale back and adopt more targeted approaches.
He noted the risk that 15 brands competing aggressively in a newly legalized market could prompt further advertising restrictions. This would raise cost per acquisition for Entain’s sports book, shifting it from monopoly status to competing alongside casino operators. Hannan stressed the need to engage constructively with the DIA so sports betting remains distinct from any casino-specific rules.
One factor behind Entain’s three-license strategy is to offset expected cannibalization of its existing sports offering.
The Open Question for Licensees
A two-week auction for the licenses begins at the end of this month after the recent Expressions of Interest period, with winners due by December. As reported by Inside Asian Gaming, the core challenge is whether operators will exercise restraint in customer acquisition to preserve the clear regulatory framework that drew them in the first place. Failure to do so could produce broader reforms that raise costs across both casino and sports verticals.
Reporting: Inside Asian Gaming
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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