Student online gambling probe launched

An online betting scandal is unfolding as an international betting site is being accused of predatory behaviour.

Metro News approached the Problem Gambling Foundation last week, with evidence of students claiming to be rewarded for encouraging online gambling. The foundation laid a complaint with the Department of Internal Affairs, which sent a release to Metro News confirming they are investigating online gambling sites.

The students have been promoting the offshore gambling site, Rainbet, through the use of affiliate links on Instagram - a practice that when used to promote offshore online gambling in New Zealand - could carry fines of up to $10,000 under current legislation.

Rainbet, operating out of the Caribbean, chose not to respond to questions from Metro News regarding incentive schemes and their customer base in New Zealand. But according to its website, Rainbet pays affiliates “10% of the ‘house edge’” when new users sign up with their code.

It also states that they "diligently comply with all applicable laws and regulations in the jurisdictions where we operate. We respect intellectual property rights.”

Metro News reached out to several Instagram pages who have affiliate links in their bios and post videos of themselves gambling on Rainbet regularly, but was largely met with silence. One user, when asked if they are paid by Rainbet to create content, said they were “not available to comment” and “would appreciate not being named in this article.” 

Another account claimed they use the site for personal entertainment and just “enjoy posting occasional videos”. In the 24 hours before this article was written, they had posted six videos alone, and more than 30 in the last seven days. Since reaching out, all of the accounts we contacted have since deleted the link from their bio. One account has deleted their page entirely. 

Whilst gambling is legal for those aged 18+, Andree Froude, the Public Health Director at the Problem Gambling Foundation, wants people to know that “it is illegal to promote overseas gambling in NZ.”

Internal Affairs Minister Brooke van Velden said the department “is aware of cases of people, who appear to be university students, promoting online casino gambling through their social media accounts.” 

“The department is investigating these cases and may issue a penalty, such as a formal warning or fine, if appropriate,” she added.

Froude also highlights that online gaming sites like Rainbet represent one of the most harmful forms of gambling due to their accessibility. 

“You can literally carry it around in your pocket… it is much easier to lose track of the time and money you are spending,” she said.

New Zealand’s Gambling Act 2003 - widely seen as outdated - was written before the rise of social media and digital casinos. “Our Gambling Act 2003 is no longer fit for purpose,” said Froude. 

“However, the Government is soon to establish a licensing regime for up to 15 online casinos which should go some way to putting guard rails around online casino gambling.”

She believes regulation is long overdue, noting that New Zealand is one of the last OECD countries to introduce such controls. 

“Something needs to be done to protect consumers. While regulation will be a good thing, we hope that harm minimisation and consumer protection will be at the forefront of this licensing system.”

Rainbet’s growing popularity among students has also raised red flags about financial exploitation. Multiple videos and social media posts reference “losing all the Studylink money” on bets.

“It’s absolutely predatory,” said Froude. “Targeting students who are already struggling with cost-of-living pressures is deeply concerning.”

Froude is urging students not to get involved in promoting or gambling through offshore sites, warning that affiliate promotion is not only risky - it’s illegal.

For those already affected, free and confidential support is available. 

If someone wants to have a chat, they can speak directly with a practitioner at www.pgf.nz between 8.30 am and 5.00 pm Monday to Friday, register online for free counselling, email help@pgf.nz, text 5819 or call 0800 664 262.