Online Gambling Spend In NZ Skyrockets

Even though there are only two licensed New Zealand-based providers, online gambling is big in the country – and it’s not limited to the official channels. A 2019 report revealed that players spent a whopping NZ$381 million on gambling with offshore operators in less than two years, and that was just the tip of the proverbial iceberg.

In terms of current legislation, the only operators licensed by the government are the state-operated Lotto New Zealand and TAB (Totalisator Agency Board). Both operators have land-based services as well as websites and apps that players can use to access gambling products.

Almost all forms of gambling in the country were projected to grow significantly in 2020, but the pandemic caused numerous disruptions that resulted in predictions of a 13.6% drop in revenue. As disruptive as last year was, it also held a couple of surprises for the industry, such as a sharp increase in online casino NZ gaming.

Predictions Of Increased Spending

According to an industry news site, New Zealand’s land-based gambling industry generated revenues of $4.4 billion in 2018; a figure that was expected to rise to $4.5 billion in 2020. That did not happen, due to casino closures and other lockdown regulations. However, after those regulations were relaxed, revenues generated by gambling machines increased by 116% from Q2 to Q3. In money terms, profits increased from $112.6 million to $243.3 million.

In 2018, players spent $1.2 billion on Lotto New Zealand using its online gambling and land-based services; a figure that was predicted to decrease to $1.17 billion in 2020. Horse betting saw a $1.5 billion gross turnover in 2018; an amount that was expected to remain unchanged in 2020. However, due to the pandemic, revenues fell, and job cuts were made.

Gambling turnover for greyhound racing in 2018 reached $110 million, which was expected to fall to $100 million in 2020. The results were likely to have been worse, as sector faced a similar situation to horse racing.

Sports betting, which in 2015 saw a turnover of more than $400 million was expected to soar to $672 million in 2020. However, the health crisis ensured the projected 68% increase did not happen.

Increase In Gambling Online

In 2019, TAB-operator the NZ Racing Board said that 60% of its betting turnover is generated through its online gambling channels. The board also revealed that its mobile app saw a 59% increase in betting revenue in one year. Lotto New Zealand saw an increase in customers in 2018, when it launched online casino NZ games such as scratch cards.

2020 may have dented the industry in many ways, but with figures such as those above, it is likely to bounce back.

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