Regulatory AuthorityCook Islands Ministry of Finance and Economic Management
License CostVaries
Regulation by Activity Type
Casinos
Regulated
Online Casinos
Regulated
Betting
Regulated
Online Betting
Regulated
Lotteries
Regulated
Poker
Regulated
Highlights
Gambling in the Cook Islands is regulated under the Gaming Act and related regulations.
Online gambling is permitted, but operators must obtain a specific license to operate legally.
Licensees are required to maintain a minimum capital of NZD $1 million to qualify for an online gaming license.
Operators must pay 5% of their gaming win as tax to the government and provide audited financial accounts annually.
The Ministry of Finance and Economic Management oversees gambling regulation and licensing in the Cook Islands.
Gaming (Fee) Regulations set out the applicable fees for licensing and compliance requirements.
Strict regulatory controls are enforced to ensure transparency and prevent illegal gambling activities.
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Legislation
Primary Legislation
The legal framework governing gambling in the Cook Islands is established primarily through specific acts and regulations enacted by the Parliament of the Cook Islands. The key legislation includes:
Gaming Act 1969: This is the principal statute regulating gambling activities in the Cook Islands. It provides the foundation for the control, supervision, and regulation of gaming operations within the country, covering both land-based and certain online gambling activities.
Gaming (Fee) Regulations 1998: These regulations supplement the primary act by outlining the regulatory framework for fees associated with gaming operations. They define the structure for official charges and compliance requirements for licensed operators.
These legislative instruments collectively establish the legal environment for gambling, setting out the fundamental rules, definitions, and statutory obligations for all forms of gaming activity permitted within the Cook Islands.
Regulatory Authority
Oversight and enforcement of gambling laws in the Cook Islands are the responsibility of designated government authorities. The primary regulatory body is:
Ministry of Finance and Economic Management (MFEM): This ministry is tasked with the administration and enforcement of gaming legislation, including the issuance of regulations, monitoring of compliance, and general supervision of the gambling sector.
MFEM is empowered to interpret and apply the provisions of the Gaming Act and related regulations, ensuring that all gambling activities operate within the established legal framework.
The regulatory authority is responsible for upholding the integrity of the gambling industry, ensuring adherence to statutory requirements, and safeguarding the interests of the public in relation to gaming operations.
License Types
Types of Gambling Licenses in the Cook Islands
Lottery Licenses: Permits for organizing and conducting lotteries, including instant lotteries and pool betting.
Gaming House Licenses: Licenses for operating premises where games of chance (such as housie or bingo) are played.
Raffle Permits: Specific permits for small-scale raffles, subject to prize value limits.
Online Gaming Licenses: Licenses for operators offering online gambling services, including casino and sports betting platforms.
Application Process
Applicants must submit a formal application to the relevant authority (typically the Chief Officer of Police or designated government department).
The application must include detailed information about the proposed gambling activity, business structure, and key personnel.
Applicants for online gaming licenses must demonstrate a minimum capital requirement (currently NZD $1 million for online operators).
Background checks and due diligence are conducted on applicants and key individuals involved in the operation.
Supporting documents, such as business plans and financial statements, are required as part of the application package.
Duration and Renewal
Licenses are typically granted for a fixed term, often one year.
Renewal applications must be submitted before the expiry of the current license, with updated documentation and payment of renewal fees.
Renewal is contingent on continued compliance with regulatory requirements and satisfactory operational conduct.
Eligibility Criteria
Applicants must be of good character and provide evidence of financial stability.
For corporate applicants, directors and key personnel are subject to fit and proper person assessments.
Applicants must not have prior convictions related to fraud, dishonesty, or gambling offenses.
Online gambling operators must maintain the required minimum capital throughout the license period.
Licensing Costs and Financial Requirements
Application Fees: A non-refundable fee is payable upon submission of the application. The amount varies depending on the type of license.
Annual License Fees: Operators are required to pay an annual fee to maintain their license. For online gaming, this is in addition to the capital requirement.
Capital Requirement: Online gaming operators must have at least NZD $1 million in capital.
Audited Accounts: Licensed operators must submit annual audited financial statements to the regulatory authority.
Key Requirements for Obtaining and Maintaining a License
Strict adherence to the conditions set out in the license, including responsible gambling measures and player protection protocols.
Regular submission of operational and financial reports as required by the regulator.
Immediate notification to the regulator of any significant changes in ownership, management, or business structure.
Cooperation with regulatory inspections and audits.
Maintenance of the minimum capital requirement for online gaming operators at all times.
Gambling Tax
Tax Rates for Gambling Operators
The primary tax imposed on gambling operators in the Cook Islands is a government levy calculated as a percentage of the operator’s win (gross gaming revenue, GGR). The key elements are as follows:
Type of Gambling Operation
Tax Rate
Basis for Taxation
Online Gambling Operators
5%
Gross Gaming Revenue (GGR)
Basis for Taxation
Tax is assessed on the gross gaming revenue (GGR), which is defined as the total amount wagered by players minus the total amount paid out in winnings.
Tax Reporting and Payment Requirements
Operators are required to submit audited accounts to the relevant authorities as part of their tax reporting obligations.
Tax payments must be made directly to the government, typically on a periodic basis as specified in the operator’s license conditions.
Failure to submit accurate and timely tax returns or payments can result in penalties or revocation of the operating license.
Tax Incentives, Exemptions, and Special Provisions
There are no widely reported tax incentives or exemptions specific to gambling operators in the Cook Islands.
All licensed operators are subject to the same 5% GGR tax rate, with no special provisions for different types or sizes of operations.
Prohibited Individuals
Age Restrictions and Identification Requirements
The minimum legal age for participating in gambling activities in the Cook Islands is 18 years. Operators are required to verify the age and identity of all players to prevent underage gambling.
Identification checks must be conducted to confirm that players meet the minimum age requirement and to comply with anti-money laundering measures.
Prohibited Activities and Game Restrictions
Unlicensed gambling operations are strictly prohibited. Only authorized forms of gambling are permitted, and any unauthorized or illegal gambling activities are banned.
Certain types of gambling, such as unregulated online gaming platforms and underground betting, are not allowed. Operators must ensure that all games offered are approved by the relevant authorities.
Games that are considered to pose a high risk to players or that do not meet fairness and transparency standards may be restricted or prohibited.
Advertising and Marketing Limitations
Gambling advertising must not target minors or vulnerable individuals. All marketing materials should clearly state the minimum age requirement for participation.
Advertisements must not mislead players about the chances of winning or the nature of the games offered.
Promotional activities that encourage excessive or irresponsible gambling are not permitted.
Operators are required to include responsible gambling messages in all advertising and promotional content.
Responsible Gambling and Player Protection Measures
Operators must provide clear information about responsible gambling and offer resources for players seeking help with gambling-related problems.
Self-exclusion options must be available, allowing players to voluntarily ban themselves from gambling activities for a specified period.
Limits on deposits, losses, and playing time should be offered to help players manage their gambling behavior.
Operators are expected to monitor player activity for signs of problem gambling and intervene when necessary, including providing information about support services.
Geographic and Location Restrictions
Physical gambling venues are subject to geographic restrictions and may only operate in approved locations as designated by local authorities.
Online gambling operations must ensure that access is restricted to jurisdictions where gambling is legally permitted, and they must implement measures to block access from prohibited regions.
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Timeline
Year/Date
Event
1967
Enactment of the Gaming Act, establishing the first comprehensive legal framework for regulating gaming activities such as lotteries, sweepstakes, totalisator betting, housie, and gaming houses in the Cook Islands.
1990s
Liberalization of gambling laws, with legal gambling options becoming available to residents, particularly for lotteries and limited gaming machines.
1998
Introduction of the Gaming (Fee) Regulations, setting out licensing and permit fee structures for gaming activities under the existing Gaming Act.
2000s
Emergence and acceptance of online gambling, with Cook Islands residents gaining access to legal online betting and casino platforms.
Requirements
Software Certification and Technical Standards
Gambling operators must ensure that all gaming software and systems used are certified by recognized independent testing laboratories to guarantee fairness, randomness, and integrity of games.
Technical standards must address the secure generation of random outcomes, prevention of tampering, and robust system reliability to minimize downtime and errors.
Operators are required to implement technical controls to prevent unauthorized access, data manipulation, or system breaches.
All gaming systems must be capable of producing detailed logs and audit trails for all gaming transactions and player activities.
Data Protection, Privacy Measures, and Server Location
Operators must implement strong data protection measures, including encryption of sensitive player information both in transit and at rest.
Access to personal and financial data must be restricted to authorized personnel only, with robust authentication and monitoring procedures in place.
Operators are required to comply with applicable privacy regulations, ensuring that player data is collected, stored, and processed lawfully and transparently.
Gaming servers must be located in secure environments, with physical and logical access controls, and may be subject to requirements for local hosting or approved jurisdictions to facilitate regulatory oversight.
Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures
Operators must establish and maintain comprehensive AML policies, including risk-based customer due diligence and ongoing transaction monitoring.
KYC procedures must be implemented to verify the identity, age, and source of funds of all players before allowing participation in gambling activities.
Operators are required to report suspicious transactions to the relevant authorities and maintain records of such reports for regulatory review.
Technical systems must enable automated flagging of unusual or high-risk activities and support the timely submission of AML reports.
Financial Reporting, Auditing Standards, and Record-Keeping
Operators must maintain accurate and up-to-date financial records, including detailed accounts of player deposits, withdrawals, wagers, and winnings.
Regular submission of audited financial statements is required, prepared in accordance with internationally recognized accounting standards.
Operators must ensure that all gaming and financial records are securely stored and readily accessible for inspection by regulatory authorities for a prescribed retention period.
Systems must facilitate automated reporting and reconciliation of financial transactions to support transparency and integrity.
Technical Implementation Requirements for Responsible Gambling Tools
Operators are required to integrate responsible gambling tools into their platforms, such as self-exclusion options, deposit and loss limits, and reality checks.
Systems must allow players to set personal limits and self-exclude, with technical safeguards to enforce these measures across all gaming products.
Responsible gambling features must be easily accessible and function reliably, with clear communication to players regarding their options and status.
Operators must implement monitoring systems to detect and address indicators of problem gambling, including automated alerts and intervention protocols.
Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.
