How Regulatory Pressure Is Changing the Way Bonuses Are Advertised to NZ Players

There is a measurable change in the advertising of casino bonuses to New Zealand players, as the scope of New Zealand’s regulatory oversight extends to other governing agencies, advertising authorities, and offshore operators. New Zealand’s Department of Internal Affairs reports a steady rise in participation in online gambling since 2021, which has focused attention on the marketing of gambling. This article provides a description of the reasons for the change, the rules that govern it, and the consequences for consumers and providers.

In New Zealand, advertising the availability of online casino bonuses is a common marketing practice. Traditionally, this type of advertising has been characterized by the use of aggressive marketing, including outrageous claims, misleading statements, and a complete absence of transparent information.

This type of advertising is facing increasing scrutiny of the imbalances in consumer protection and gambling harm, which is a regulatory change in the enforcement of advertising. This is advertising more responsibly, especially with respect to online gambling. To understand the scope of change, it is necessary to appreciate the regulatory pressures that are influencing the market.

What’s Driving Regulatory Change in New Zealand

New Zealand does not allow domestic online casinos, yet people continue to gamble on unregulated overseas sites. New Zealand’s Department of Internal Affairs reported in 2024 that 4 out of 5 online gambling sessions by New Zealanders are on foreign sites. This gap between regulations and behaviors has led to increased focus by regulators on controlling advertisements.

Officials claim that promoted messages affect users’ gambling decisions. According to a 2023 study funded by the Ministry of Health, advertising and promotional offers during the initial engagement stage were reported as the most significant factors that led a new player to register at an offshore casino. This is why there have been calls to amend advertising regulations to impose stricter regulations on the descriptions of bonuses.

Some offers, in particular, have drawn scrutiny. A no-deposit casino bonus tends to entice users as it allows new customers to play certain games at the casino without making an initial deposit. Independent information resources that describe how a no deposit casino bonus works and what wagering requirements and withdrawal limits there are, without simply sidelining the concept of free play, are, in a way, more legally compliant with the promotional messaging and are more accepted.

New Zealand developments also impact New Zealand. New Zealand officials use the standards of Australia and Europe when making compliance assessments. This has resulted in an Australia and Europe compliance standard expectation regarding accessibility and advertising, and the accompanying advertising fairness. This has COVID, and the advertising age and the accessibility advertising fairness convergence further amplify the potential for regulatory market intervention.

New Rules Affecting Casino Bonus Advertising

The New Zealand gambling rules already encompass gambling promotional activity. However, since 2022, the enforcement of gambling promotion rules has been more active. The New Zealand Department of Internal Affairs has been sending more compliance warning letters and removal requests to affiliates and advertisers of New Zealand players. The Department of Internal Affairs’ 2024 annual report indicated an increase in compliance action of 35% year over year for actions related to the promotion of gambling online.

These actions do not remove the ability for advertisers to promote and use bonuses. However, the actions of the New Zealand Department of Internal Affairs focus on the promotion and use of bonuses for misleading advertising and inadequate disclosure on a promotion. In these rules, New Zealand regulators expect advertisers not to use words such as “risk-free” when promoting gambling or “guaranteed” when referring to a win. New Zealand advertisers are also required to present wagering and prize eligibility disclosure more prominently.

The New Zealand Advertising Standards Authority reinforces these words. In 2023 and 2024, several New Zealand Advertising Standards Authority decisions regarding gambling advertising and the New Zealand Advertising Standards Authority received and upheld complaints for such advertising that was not gambling advertising, and that was inappropriately overshadowed by claims that such advertising minimized risk or that such advertising inappropriately overstated the benefits of such advertising. Such decisions indicate that advertising must prioritize honesty over persuasive deficit.

Consequently, advertisement bonuses have become more calculated. The headlines have become comparatively more mundane, and there is more text than there used to be. This is a change that demonstrates a wider regulatory perspective, where the ability to choose is assumed to lessen the risk.

How Operators Must Adapt Their Bonus Messaging

Offshore operators still target New Zealand players, but they are now working in a more confined environment. Many have simplified their offerings by streamlining their text, and closer to the big offer, there are more conditions. Wagering requirements, limits on withdrawals, and restricted games are now more likely to be in the overview, as opposed to hiding them in separate pages.

This has been corroborated by data in the industry. A 2024 report by H2 Gambling Capital indicated that operators who voluntarily improved transparency within the regulated markets on bonus advertising also enjoyed a reduction in the volume of complaints they received. New Zealand, albeit, still has no licensing regime for online casinos, but offshore players still manage their risk by applying self-regulation.

Affiliates have also adjusted their strategies. Instead of simply advertising the bonus size, many bonus comparison sites now consider the ease of use and the conditions attached to the bonus. This change is a result of both regulatory requirements and changing players’ needs. A 2023 Statista survey indicated that more than 60% of online gamblers preferred lower bonuses with more transparent terms.

The modifications affect how customers deal with promotions. Advertisements focus more on informing consumers instead of requesting sign-ups on the spot. That change alters the dynamics between operators, affiliates, and the other audiences.

Impact on NZ Players and Bonus Offers

For NZ players, the overall effects of tighter supervision are of a twofold nature. Less ambiguous advertising will lead to a lower possibility of misunderstanding bonus conditions. On the other hand, some offers look less appealing once the complete requirements are made available.

There are health data that advocate for the potential benefits of this form of transparency. The Ministry of Health reported that the rate of problem gambling associated with online play remained stable between 2022-2024 with increased participation, suggesting problem gambling to be of low risk. This is used by regulators to support the notion that there is a balance between consumers and the standards of advertising their needs.

Visibility is also different. Major digital platforms have revised their internal controls on gambling ads targeting users in New Zealand. This has lessened the visibility of bonus promotions on popular advertising outlets, thereby changing the focus to review and informational pieces.

The future might make these impacts even stronger. Government officials announced plans to implement a licensing framework for online casinos in late 2024, with a target of 2026 for the submission of applications. Once implemented, we can expect more coherent and more granular rules regarding bonus advertising.