Over 600,000 online casino accounts have been created
On October 1, 2021, the New Zealand online gambling market opened. Since then, 634,000 accounts have been created with the various legal online casino providers. This can be read in the Annual Report 2021 of the Kansspelautoriteit (Ksa).
In this article we discuss the most important points from the annual report regarding the online casino market in New Zealand.
Number of authorisations
At the opening of the online gambling market on October 1, 2021, ten companies were licensed to offer gambling via the internet. At the moment, March 8, 2022, there are now seventeen online gambling license holders.
The Ksa still has several permit applications pending and is also still receiving new applications. In addition, there is a category of providers who were not allowed to submit an application at an earlier stage.
They have a penalty because they broke the rules when online gambling was still illegal. These are big online casinos like Bwin, Unibet and Betsson .
On the website of the Ksa you will find Kansspelwijzer. The current situation regarding the number of licence holders can always be found there. You can also view these in our overview with legal casinos in New Zealand.
What does gambling cost you? Stop on time. 18+
Market size
We map the size of the online gambling market in three ways, namely via:
- the gross game result (BSR, bet minus prize money)
- web traffic
- the number of player accounts
1. Gross game result
Due to the legalization of the New Zealand market for online gambling, it has become clear how much money is spent in the legal gambling market. The gross game profit in the fourth quarter of 2021 amounted to 185.5 million dollars.
2. Web traffic online casinos
Not everyone who visits an online casino website will actually play there. Many people only come to take a look or check the odds of a football match at a bookmaker . The web traffic is therefore only an (overestimating) representation of the size of the betting market.
Figure 1 shows the time consumers spend on gambling websites and gives an impression of shifts between the illegal and the legal market.
We see that after October 1, 2021, the number of hours on legal online casino sites has increased sharply. Logical, because until then only the websites of Toto (sports betting) and Runnerz (horse racing) were legal.
The number of hours on the 100 most popular gambling websites without a license has fallen sharply (see red line). Main reason is that many major providers decided to abandon the offer in New Zealand. Many gamblers therefore took a gamble elsewhere.
3. Number of player accounts
The number of player accounts also gives a good idea of the size of the gambling market. From 1 October to the beginning of February, 634,000 player accounts were created and approved. A player can create an account at various online casinos. So there is a double in this.
17% of accounts are from consumers in the 18-24 age group. This group makes up 11 percent of the population demographically. This group of young adults is therefore overrepresented in terms of the number of people with a player account.
Previous research by DPG Media highlighted gambling at a online casino is gaining popularity .
Central Register For The Exclusion Of Games Of Chance (Cruks)
Since 4 October 2020, players can register in the Central Register exclusion games of chance (Cruks). This excludes you as a player (six months or more) from participating in games of chance with legal providers, both online and land-based.
A licensed provider must check every player in the Cruks before they can access the game offer. By the way, it is also possible to be involuntarily registered in Cruks.
This is possible, for example, because a partner or family member submits a request to the Ksa. The Ksa will then consider the application and grant the request or not.
There are 10,022 people registered in Cruks (March 8, 2022). This was (oddly enough) only voluntary registrations.
In Q4 2021, Cruks was consulted about 18 million times a month. In January and February 2022, this snapped 16.7 million times. Possible explanation of the decline is that due to corona, the slot machine halls and branches of Royal Vegas Casino were closed.
Incidentally, as a player you also have to indicate your play limits and deposit limits. Earlier in our article we wrote about casino limits all that a true gambling addict will always look for ways out to be able to continue playing despite those limits.
Game Of Chance
The Game Of Chance has been open since October 1, 2021. The ticket office is the central support point in the field of gambling problems and offers help and guidance and refer people with gambling problems to a nearby agency.
The Ticket Office Kansspel can be reached 24/7 by phone and can be reached daily via chat and WhatsApp between 8 am and 24 pm.
After the opening on October 1, 679 contacts were made with the Kansspel ticket office in three months. 425 times it was an informational interview and 254 times it was a help interview.
For example, an information meeting is about what the counter entails and where you can file a complaint about a provider. Help conversations are about play behavior and associated feelings.
The people who contact The Ticket Office Kansspel are mostly men under forty years of age.
Provider and addiction prevention
A gambling operator is obliged to designate a representative as a point of contact for Addiction Prevention. Only then was a permit issued. On the website of the Ksa, the representative can be found for each provider.
The period is still too short to be able to make a judgment on what is done with their expertise and recommendations by permit holders in practice. Better conclusions can be drawn at a later date.
Online casino advertising
Since October 1, 2021, there has been an increase in advertisements for gambling. It makes sense because a new legal market has emerged. The casino providers want to advertise to attract customers and build brand awareness!
The laws and regulations impose requirements on the content of advertising. This should be careful and balanced, should not be misleading and should not encourage excessive play behavior.
In addition, there are time windows for advertising on radio and television, depending on the type of Game of chance. Advertisements for low-risk games of chance (such as lotteries) may be broadcast from 19 hours. More risky games of chance may only be broadcast after 21 hours.
Advertising on tv
The figures below show that spending on advertising and the number of expressions have both increased.
This increase is due to online gambling providers. Advertising from land-based providers (physical establishments) has not increased.
The peak in december is caused by the end-of-year draws of lotteries.
The day of the week does not matter much for the amount of advertising for online casinos.
Warning phrase
In 2021, the new warning phrase " What does gambling cost you? Stop in time. 18+ is announced. The phrase replaces the well-known phrase " consciously play 18+." The providers of high-risk games of chance must warning phrase have entered from april 1, 2022.
Penalties for illegal online providers
In 2021, the Ksa issued $ 2,171,250 in fines to companies that illegally offered online gambling in New Zealand.
Casino affiliate websites
In affiliate marketing, websites receive a fee from gambling providers for advertising. Affiliates are not allowed to advertise illegal casinos.
In 2021, the Ksa conducted 22 so-called affiliate surveys. Fifteen websites violated the law on gambling. Most sites stopped promoting the illegal providers and switched to advertising for legal casino providers.
In some cases, a penalty charge was imposed.
Also read our article in which we list the most frequently asked questions about online casinos answer. For example, we deal with questions such as: are online casinos reliable? Will I get my winnings paid out? Do I have to pay tax on my casino winnings?
By the way, did you already know that in October 2022 the casino of the year election is held?
