Low value versus cheap
Low-value gaming does not sound like a terribly flattering name to give a market sector. When we think of low value, it is easy to think of something of inferior quality or a product that does not deliver value for money. However, legally, low-value can be estimated as something with a value of $10 or less, and "inexpensive" means estimated at less than $25 cost. So, what this article is going to explore is the explosion of low-cost entry gambling and iGaming as opposed to the high-stakes variety.
The big rollers like Drake, Ben Affleck, and Kerry Packer often hog the gambling headlines with their outrageous and extravagant bets and bravado at casino tables, card games, and daring slot play. However, your average Joe or Joanna tends to play much smaller bets and generally takes much lower risks. As we know, multiple small sums can add up to very large totals, which is very much the case with the New Zealand gaming scene. It is not about big, flash casino nights out or massive sports bets. The average stakes are low, and pokies are the gaming machine of choice.
Big business
While the stakes might be small, the industry is anything but! New Zealand has a thriving gambling industry - it is one of the country's favourite pastimes. It is reported that 80% of the country's population gambles in one way or another. Ironically, while large sums are lost on the pokies, a high proportion of the funds spent are channelled back into supporting good causes and charities nationwide. Pokie play is regulated by the Department of Internal Affairs, which is just as well considering the vast number of players and the revenue generated.
The headline figures for gambling in New Zealand go something like this:
- Gaming machines were first permitted in the country in 1998
- There are now more than 20,000 video poker (pokie) terminals across the country
- 82% are in pubs and clubs
- 18% are in casinos
- They are operated by 'societies' that generate $300 million annually for sports, health, arts, education, and other 'good causes'
- They generate a similar sum for government coffers
- Most of the country's online gambling activities are unregulated
- It is currently illegal for online casino operators to be based in New Zealand
- It is perfectly permissible for New Zealanders to play at offshore online casinos
As you can see, there is an evolving paradox. New Zealanders enjoy playing the pokies. The pokies are increasingly available online. New Zealanders are, therefore, moving away from terminals in clubs and pubs and spending more of their low-value stakes online. Operators offer incredibly attractive bonuses to persuade iGamers to play at their online casino rather than a competitor's.
Bonus boost to low-value gaming
While the market is not regulated, there are plenty of opportunities for players to find the most reputable operators and generous bonuses by checking out review sites. The online casinos have tailored offers and bonuses specifically for the New Zealand market. The best of these have been found by Casino.org and curated into lists for players to find the best offers. Bonuses allow players to play real money games for even lower-value stakes and sometimes no-value stakes. No deposit bonuses are a rarity, but they do exist. These give players the opportunity to play games with the potential of winning real money without having to deposit anything themselves.
However, the vast majority of bonuses for low-value games are sign-up bonuses, deposit match promotions, and free spins. Many sites also offer free play options – although these do not afford the opportunity to win cash, they are still a strategic way for the operators to have players try out their games.
Bonuses usually come with wagering requirements, and these indicate how much money has to be staked before winnings can be withdrawn. One of the reasons that low-value gaming might have exploded is that casinos appear to offer very attractive bonuses and offers, allowing people to initially make low-value deposits, but they then have to wager fifteen or even a hundred times more before they can withdraw winnings. The very best bonuses have low or sometimes no wagering requirements, but these can be very hard to find.
New regulation
New Zealand's Department of Internal Affairs' own data shows that the growth in the industry is coming from the low-value pokie market. The gambling machine market, outside of the casino environment, is worth $1,037 million compared to $802 million five years ago. In the same period, casino receipts increased from $504 million to £592 million, which is steady growth but nothing like the stand-alone machines. Those figures do not take into account the value of the online pokie market either, as that does not flow through the Department's coffers.
Therefore, it should come as no surprise to discover that there are moves afoot to bring online gambling into the regulated market. The government recently announced that it plans to launch a new regulated online casino market and will be issuing up to fifteen operator licenses. The market is set to be operational by April 2026, and new legislation will replace the current 2003 Gambling Act.
The Minister in charge of the legislation said the intention is not to increase gambling in the country but to make it safer. Unfortunately, the availability of and accessibility to pokies and online gambling sites have led to an explosion in problem gambling, too. Around 76,000 New Zealand citizens over 15 were estimated to be at moderate to high risk from gambling. Effective regulation is essential to balance the entertainment value that the vast majority of gamblers can derive from playing with the addiction problems suffered by others. What most mature, regulated markets, like those in the UK and Europe, find is that safe gambling tools and self-exclusion programs go a long way to helping people.
While it might be tempting to consider 'prohibiting' pokies to protect people, experience shows that this only drives people underground and exacerbates the problem. The online gambling market is predicted to hit $600 million in 2027, and the authorities want to ensure that this happens in the most responsible way possible. It seems that their 'head in the sand' approach has not prevented the explosion in online casino gambling.