New Zealand Moves Against AI Gambling Scams

Deepfakes Become a New Target in New Zealand’s Gambling Reform

New Zealand is expanding its crackdown on online gambling advertising, this time focusing on artificial intelligence. As the country prepares to launch a regulated online casino market with just 15 licensed operators, officials are moving to block AI-generated celebrity endorsements that they believe could mislead consumers and fuel gambling harm.

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The decision comes after authorities identified examples of deepfake technology being used to promote gambling services without the knowledge or consent of the people featured. One case involved AI-generated versions of TVNZ presenter Jenny-May Clarkson and filmmaker Taika Waititi appearing to endorse a gambling app called Māori Game, despite neither having any connection to the promotion.

Officials believe this type of advertising gives fraudulent gambling offers an appearance of legitimacy that can be difficult for consumers to distinguish from genuine endorsements.

Scam Gambling Sites Under the Microscope

The Department of Internal Affairs has linked many of these advertisements to scam gambling websites designed to collect personal information or financial details rather than provide legitimate gaming services.

The agency has observed AI-generated gambling promotions becoming more common overseas and wants to prevent the same pattern from becoming established in New Zealand before the regulated market opens.

Particular concern has been placed on synthetic influencers and deepfake technology because they can convincingly imitate well-known public figures. Authorities believe those campaigns are especially likely to attract younger audiences, including Gen Z, while making gambling promotions appear more trustworthy than they really are.

There is also another consequence. People whose identities are copied into fake advertisements can suffer reputational damage even though they had no involvement in the campaigns.

The department is encouraging the public to report suspicious online casino advertisements by capturing screenshots of questionable promotions, including those featuring apparent celebrity endorsements, so investigators can examine them.

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Advertising Rules Tighten Before Licensing Begins

The new advertising restrictions took effect in July following advice presented to Internal Affairs Minister Brooke van Velden.

Under the updated rules, online casino advertisements are no longer permitted during live broadcasts or within 30 minutes before or after those broadcasts. Sports and racing betting advertising remains outside the scope of the Online Casino Gambling Act.

The reforms also close what officials viewed as an important regulatory gap. Earlier endorsement rules prohibited operators from paying real people to promote gambling but did not explicitly cover AI-generated versions of those individuals. Authorities concluded that synthetic endorsements could achieve the same promotional effect while avoiding the existing restrictions.

The next milestone arrives in December. Operators that have not submitted an application for an online casino licence must stop offering services in New Zealand. Sponsorships and endorsements remain prohibited regardless of whether an operator ultimately secures a licence.

Businesses found breaching the advertising rules face civil penalties of up to approximately €4.3 million, or around $5 million.

Officials also note that the risks linked to AI-generated endorsements are not limited to gambling. The same technology has broader implications wherever a person’s likeness can be copied to deceive consumers or falsely suggest support for a product or service.

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Source:igamingexpress.com