Australia vs New Zealand Gambling Market Size in 2025

Gambling has long been a significant part of the economies of both Australia and New Zealand, but their markets have developed in distinctly different ways. While Australia continues to lead in gambling expenditure per capita, New Zealand has been refining its regulatory framework to create a more controlled industry. As 2025 unfolds, the competition between these two nations’ gambling sectors is expected to intensify, particularly in the online space.

The rise of digital platforms has contributed to the growth of online pokies and other games, a trend that continues to reshape the industry in both countries.

Market Projections for 2025

Australia’s gambling market remains one of the largest in the world, with total gambling expenditures surpassing NZD 25 billion annually. However, with increasing regulatory pressures, including advertising restrictions and responsible gambling initiatives, growth is projected to slow slightly in 2025.

New Zealand, while a smaller market, has shown steady growth due to its focus on online gambling. The country’s gambling revenue is expected to reach approximately NZD 2.5 billion in 2025, driven primarily by the popularity of online pokies and other digital betting options. The government’s approach of restricting local operators while allowing offshore platforms to thrive has created a unique ecosystem that continues to expand. Pokies are particularly popular as they offer a near-perfect balance between entertainment and reward, an experience that game providers try to improve with each new release (source: https://www.techopedia.com/online-slots/new-zealand/online-pokies).

Key Differences in Regulations

One of the biggest distinctions between the two markets is their regulatory approach. Australia enforces strict gambling laws, particularly for online casinos, prohibiting domestic operators from providing services like online slots and casino games to residents. Meanwhile, sports betting is allowed and continues to be a dominant segment.

New Zealand has a different strategy. The government monopolizes the industry through the TAB (for sports betting) and Lotto NZ, but it does not prohibit residents from playing at offshore casinos. This allows Kiwi players to access a wide range of gambling sites while the government collects revenue primarily through taxation of regulated services. However, with the rise of offshore gambling, concerns have grown about consumer protection and responsible gaming. The government has been exploring potential frameworks to regulate offshore platforms, such as implementing licensing requirements or mandating a levy on offshore operators targeting Kiwi players to recapture lost tax revenue and enhance player safeguards.

Growth of Online Gambling

The online gambling sector is where the most significant changes are occurring. Australia has seen a steady increase in online sports betting, particularly as younger demographics prefer mobile-friendly platforms. However, strict regulations on online casinos have prevented the market from growing as fast as in other regions.

Alternatively, New Zealand has been more open to the rise of online casinos, with offshore operators capitalizing on the demand for pokies and table games. This is in contrast to the situation in other countries. With improved internet infrastructure and a shift towards digital entertainment, online gambling is expected to constitute a substantial portion of the market’s total revenue in 2025.

Challenges Facing Both Markets

Despite their growth, both Australia and New Zealand face challenges in the gambling sector. Australia is dealing with increasing problem gambling concerns, leading to more restrictions on advertising and potential spending caps. The government has already introduced stricter ID verification requirements and self-exclusion programs, with further measures expected in 2025 to curb excessive gambling.

Meanwhile, New Zealand, while benefiting from offshore gaming options, struggles with lost tax revenue due to players spending money on international sites. The government is considering regulatory adjustments to ensure that more gambling-related revenue remains within the country, potentially through licensing offshore operators or imposing taxes on international gambling transactions. Both countries are expected to implement further regulations in 2025 to address these issues, striking a balance between consumer protection and economic growth.

Conclusion

Australia and New Zealand’s gambling markets will continue evolving in 2025, shaped by differing regulations, technological advancements, and consumer trends. While Australia remains dominant in total gambling expenditure, New Zealand’s more open approach to online casinos is fostering significant growth in the digital sector. Both markets face challenges, but the continued demand for online betting options ensures that gambling will remain a vital part of their economies for years to come.