The iGaming industry has experienced significant growth globally in recent years, and New Zealand is no exception. With the legalisation of online gambling in 2003, the country has seen a surge in the popularity of online casinos and sports betting platforms. The growth of the iGaming industry in New Zealand can be attributed to several factors, including the increasing popularity of mobile gaming, the rise in disposable income, technological advances, and effective marketing strategies.
In this write-up, we will discuss how the iGaming industry took off in New Zealand, highlighting these key contributing factors and their impact on the industry. Additionally, we will examine the iGaming industry's benefits to the country, including employment opportunities and revenue generation for the government.
Legalisation of Online Gambling
One of the significant ingredients contributing to the growth of the iGaming industry in New Zealand is the legalisation of online gambling. In 2003, the government passed the Gambling Act, which allowed online gambling in the country. According to the Department of Internal Affairs, the online gambling market in New Zealand is estimated to be worth around NZD 381 million annually. This law created a regulated and legal framework for online gambling, which has encouraged more players to participate in the industry and to search for the best NZ online casino on sites like Time2play.
Growing Popularity of Mobile Gaming
Another factor that has contributed to the growth of the iGaming industry in New Zealand is the growing popularity of mobile gaming. According to a report by the New Zealand Telecommunications Forum, the number of active mobile connections in the country increased from 8.2 million in 2012 to 10.6 million in 2019. With the increase in smartphone and tablet usage, more people are now accessing online gambling platforms through their mobile devices. This has made it easier for people to gamble online, anytime and anywhere, contributing to the industry's growth.
Increase in Disposable Income
The increase in disposable income among the New Zealand population has also contributed to the growth of the iGaming industry. According to Statistics New Zealand, the average annual household income in New Zealand was NZD 105,719 in June 2021, an increase of 2.6% from the previous year. As more people have more money to spend, they are more likely to engage in leisure activities such as online gambling during the public holidays in New Zealand and in their spare time. This has created a larger market for the iGaming industry, which has led to its growth.
Advances in Technology
Technological advances have also played a significant role in the growth of the iGaming industry in New Zealand. With the development of sophisticated gaming software, online gambling platforms have become more attractive and engaging to players. According to a report by Grand View Research, the global online gambling software market size was valued at USD 6.8 billion in 2020 and is projected to reach USD 15.8 billion by 2028. This growth is due to the increasing demand for advanced gaming features and the rise of mobile gaming.
The development of high-speed internet and mobile devices has made it easier for players to access online gambling platforms from anywhere at any time. The introduction of virtual and augmented reality has also revolutionised the iGaming industry, offering players a more immersive and realistic gaming experience. These technological advancements have been critical in attracting and retaining players, contributing significantly to the growth of the iGaming industry in New Zealand.
Marketing Strategies
Marketing strategies have also contributed to the growth of the iGaming industry in New Zealand. Online gambling platforms use various marketing techniques to attract new players and retain existing ones. According to a report by Hootsuite, the number of social media users in New Zealand was 3.8 million in 2021. Online gambling platforms use social media to promote their services and engage with their customers. These marketing strategies have helped increase the iGaming industry's visibility, which has contributed to its growth.
Employment Opportunities
The growth of the iGaming industry in New Zealand has brought several benefits to the country. One of the benefits is employment opportunities for the New Zealand population. According to the New Zealand government, the online gambling industry directly employs around 2200 people, with an additional 500 people employed in supporting industries.
Online gambling platforms require a wide range of skilled professionals, including software developers, graphic designers, customer support agents, and marketing specialists. The industry's growth has created job opportunities for these professionals, which has helped to reduce unemployment in the country.
Generation of Revenue for the Government
The iGaming industry has generated significant revenue for the New Zealand government, with an annual revenue of approximately NZD 381 million in 2021. The government collects taxes from online gambling operators, contributing over NZD 2 billion in gambling taxes in the 2019-2020 financial year.
The Department of Internal Affairs regulates the industry, and issues licences to operators, ensuring that they operate in a responsible and sustainable manner. The regulatory framework has fostered trust and confidence among players, leading to the industry's continued growth. The iGaming industry's success in New Zealand can be attributed to effective marketing strategies, technological advancements, and rising disposable income.