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by New Zealand Broadcasting School students

Foreign casino site avoids punishment after breaching New Zealand law

News

Madaleine Mansfield

The Department of Internal Affairs (DIA) is defending its decision not to contact Caribbean-based gambling site Rainbet, despite an apparent breach of gambling laws.

The decision is drawing fire from the Problem Gambling Foundation.

Advocacy and Public Health Director Andree Froude said it was “really concerning” that the offshore operator would face no direct penalty.

The case emerged after MetroNews presented the PGF with evidence that university students were using Instagram to promote Rainbet through affiliate links and earning rewards when new users signed up. 

Under New Zealand’s Gambling Act 2003, it is illegal to promote overseas gambling, with fines of up to $10,000 for those who breach the rules.

 “It is the influencers or students that are paying the fines, but it is the gambling operators that are approaching them in the first place - they should be held to account and it’s disappointing that they’re not,”  Froude said. 

 

Andree
Andree Froude wants the DIA to hold Rainbet accountable The Problem Gambling Foundation

In a statement, the DIA said it investigated the promotion of Rainbet by university students and “prioritised engaging with and educating the students rather than Rainbet directly.” Officials said the focus was on explaining the legality and potential risks of promoting gambling that falls outside New Zealand’s regulatory framework.

 “As a result of these conversations, related content has been removed from the social media platforms,” the Department said.

Despite a case being put forward with specific accounts using affiliate links, the DIA concluded there was no evidence of a targeted marketing campaign by Rainbet to attract New Zealanders, but rather just students sharing hashtags and referral codes within their own circles to earn site rewards. 

The DIA said it continues to monitor online gambling advertising and would take further action if new information emerged.

While the Problem Gambling Association acknowledged that enforcement can be difficult when companies operate overseas, Froude argued that this was not an excuse for inaction.

“Fine the offshore casino operators the maximum fine payable, sending a clear signal that they are breaking the law. The DIA needs to be tough on these operators to prevent this predatory practice of targeting people to advertise their sites.”

Froude said that with New Zealand’s new online casino licensing system about to be introduced, now is the time to set a precedent. 

She believes hitting illegal operators with penalties would serve as a warning that breaches will not be tolerated. Under the new regime, advertising will only be permitted for licensed New Zealand operators, and she hopes the fines for unlicensed advertising will be significant enough to deter companies from targeting local audiences.

While she accepts that students may benefit from an initial educational approach - especially if they are unaware of the law - she said Rainbet “will be well aware of the differing laws globally” and should face “immediate penalties.”

The PGF says online gambling presents one of the most harmful forms of gambling due to its accessibility and the speed at which money can be lost. It has seen a steady increase in young people seeking help over recent years, though not a clear spike in the last three months. Froude said that often people do not reach out until they are in serious trouble, facing financial strain, relationship breakdowns, mental health challenges, or even criminal charges.

She urged students and the public to understand that promoting overseas gambling is prohibited and to avoid being drawn into schemes that could land them in legal trouble. Those affected can access free, confidential help through the PGF’s website pgf.nz, via email at help@pgf.nz, or by calling 0800 664 262.