New Zealand Inches Towards Regulating Online Gaming
New Zealand is moving closer towards establishing a proper regulatory framework that guides the online Gaming sector.
There has no formal legislation governing iGaming in New Zealand, with the industry operating in a grey area that leaves players vulnerable to unethical practices by offshore operators.
However, the Online Gaming Bill will instigate a robust set of guidelines that protects players and reduces Gaming-related harm while establishing a transparent market.
The Current Landscape
Even though operators such as Lotto NZ and TAB have been present for some time, international firms dominate the online Gaming space in New Zealand.
These offshore entities operate without supervision, which can lead to issues such as payment delays or outright refusals to process customer withdrawals.
Players are effectively unprotected, and there are no harm prevention measures in place. The regulatory void has been a long-standing concern for policymakers and consumer advocates.
The global iGaming market is growing rapidly, and the government must ensure New Zealanders enjoy online casino games real money in a safe and secure environment.
A New Bill on the Horizon
Internal Affairs Minister Brooke van Velden has spearheaded efforts to restructure the online Gaming scene.
The groundwork was laid last July, and the bill is expected to be introduced to Parliament next year with a view to funnelling players towards licenced operators.
Only 15 operators will receive licences to ensure a controlled and competitive market following amendments to the initial bill.
Some adjustments have also been made to set limits on Gaming advertisements to protect children and vulnerable people. Operators that violate regulations could face fines of up to NZ$5 million.
The Role of Cybersecurity in iGaming Regulation
With New Zealand developing a regulatory system, one of the key tenets of the framework will be cybersecurity.
Operators must protect sensitive information and systems from hacking, data breaches and malware attacks. The advancement of technology over the past few years has meant that even cybercriminals have more sophisticated methods of perpetrating their activities.
Product Principal of Secure Solutions at Continent 8 Technologies, Craig Lusher, has noted how critical Security Information and Event Management (SIEM) platforms and Security Operations Centres (SOCs) are in maintaining a robust cybersecurity posture and meeting regulatory compliance.
They will be crucial as licenced operators in New Zealand look to keep customer data safely locked away while fending off cyberattacks.
What is SIEM and SOC?
SIEM is a security solution that helps organisations recognise and address potential security threats and vulnerabilities before they have a chance to disrupt business operations.
The systems help enterprise security teams detect user behaviour anomalies, using artificial intelligence (AI) to automate many of the manual processes associated with identifying threats and initiating a response.
SOC or Managed Security Operations Centre (MSOC) is a team that safeguards systems from security threats using tools such as SIEM.
The teams monitor systems, detect problems and respond quickly to mitigate risks. They work to ensure online games platforms are secure and meet global standards.
SIEM and SOC Strategies for Effective Regulation
New Zealand’s regulatory framework needs operators to embrace SIEM and SOC strategies to be successful.
They must prioritise data collection while conducting real-time monitoring for threats and respond to them immediately.
Advanced analytics and automation will filter and prioritise security alerts, reducing the human effort required while being more efficient.
These technologies must also possess the intelligence to analyse risk accurately and respond decisively.
Online Gaming operators must continuously update their SIEM systems and train SOC analysts to stay ahead of the curve.
A Holistic Approach to Regulation
Besides creating a licencing system, the bill is expected to address other issues around advertising, minimising harm and protecting consumers.
The government plans to pay more attention to these areas to ensure room for adjustment and enforce them as required. The industry is evolving, and the rules must move with the times.
Harm prevention is a critical aspect of this proposed framework, with the government keen on preventing problem Gaming through self-exclusion tools, deposit limits and compulsory verification processes.
Another critical aspect of the regulations is the tax collection system. Offshore operators cater to the New Zealand market without remitting or contributing to the local economy.
Licencing operators and ratifying a tax regime allows a portion of Gaming revenue to be reinvested into New Zealand.
The legal iGaming market will also create new jobs and opportunities in the tech and customer service sectors.
