Taking Risks, Making Plans: What Gambling Can Teach Us About Insurance in New Zealand
As New Zealand formalises its online casino sector through a new licensing framework, attention has turned to how Kiwis approach financial risk more broadly. While gambling often sparks debate, it also reveals something important: a national appetite for decision-making under uncertainty. Yet in areas like insurance, many New Zealanders seem less prepared to manage risk when it really matters.
According to data from the Financial Services Council (FSC), more than 70% of Kiwis are underinsured when it comes to life, income, or health. In contrast, participation in gambling, whether sports betting, racing, or online casinos, is rising steadily, particularly among younger adults.
A Regulated Industry Built on Choice
In July 2025, the New Zealand Parliament progressed the Online Casino Gambling Bill, which will introduce a licensing system for previously unregulated offshore operators. Under the new framework, up to 15 online casino licences will be granted by mid-2026. Operators will be subject to strict age verification, advertising standards, and mandatory contributions to a Problem Gambling Levy, which funds national harm-reduction services.
Unlike unregulated offshore betting, the new system aims to channel gambling activity through safer, transparent platforms, giving New Zealanders the ability to enjoy entertainment responsibly within a controlled environment.
Gambling Reflects Active Risk Engagement: Insurance Often Doesn’t
Both gambling and insurance involve risk, but public attitudes diverge sharply. Gambling is often approached as a personal choice, a form of entertainment that can involve strategy, luck, and self-control. Insurance, in contrast, is frequently neglected, despite being a key financial tool for long-term protection.
While gambling requires active decision-making, when to bet, how much, and on what, insurance decisions are often delayed or avoided, particularly among younger people and self-employed workers. Yet both activities reflect an individual’s approach to uncertainty, and both benefit from regulation and informed choice.
A Culture of Risk Without a Safety Net
New Zealanders show a clear willingness to take risks in areas like business, property investment, and yes, gambling. But when it comes to personal financial protection, many remain exposed. Surveys show that nearly half of adults couldn’t manage an unexpected $5,000 bill without going into debt.
This imbalance suggests not that Kiwis are too comfortable with risk, but that the tools to manage it are unevenly used. Gambling, when done within legal and self-managed limits, reflects risk engagement. Insurance reflects risk preparedness. Both are necessary.
Aligning Financial Literacy With Everyday Habits
The formalisation of New Zealand’s online gambling space is an opportunity—not just to protect consumers, but to encourage smarter decision-making across the board. Just as players weigh odds and set limits, New Zealanders can apply the same thinking to their finances—budgeting for premiums, assessing value, and preparing for unexpected events.
Encouraging a broader conversation around financial risk management—beyond harm avoidance—could help shift the narrative. Gambling isn’t inherently reckless. Insurance isn’t inherently boring. Both are mechanisms for navigating uncertainty in modern life.
Final Thought: Risk Isn’t the Enemy: Unpreparedness Is
As New Zealand modernises its approach to gambling, it reveals something essential: people engage with risk every day. The challenge isn’t eliminating risk—it’s learning how to balance it.
By understanding why Kiwis place bets—and why many avoid insurance—we can build a more resilient, financially aware culture. One that respects choice, rewards preparedness, and recognises that risk, when managed well, is not just acceptable—but essential.