Government bans AI-generated celebrity endorsements for online casinos, warns of scams

Online casino gambling websites are being prohibited from creating AI-generated deepfake endorsements from celebrities and influencers to lure would-be gamblers in.

A specific warning is also being issued around ‘scambling’ - or non-legitimate gambling sites operating in New Zealand to commit identity theft and credit card fraud, ahead of a regulated market coming into force.

The Government is set to grant 15 licences to legitimate casino gambling websites, allowing them to advertise and operate in New Zealand. All operators who do not get a licence through the competitive process will be prohibited from providing online casino services.

The Department of Internal Affairs raised specific concern over the prevalence of gambling operators using celebrities’ images without consent to advertise, as it has become an increasing issue overseas.

A phoney video of TVNZ’s Jenny-May Clarkson, endorsing a gambling app called “Māori Game” alongside an AI-generated Taika Waititi also raised alarm bells for officials.

DIA deputy director of gambling Ben Gamboni told Newstalk ZB there has been a rise in AI-generated content advertising gambling in both the US and UK which the agency wanted to get ahead of.

Gamboni also said people who are depicted in AI endorsements face “harm to themselves and their brand”.

Concerns have also been raised over scam websites that entice people with bonus money or free spins, but are not for legitimate gambling.

“It’s just a scam and a way to get your details, either for identity theft or just to take the money out of your wallet,” Gamboni warned.

Regulations on online casino gambling sites prohibit advertisements from using sponsorships or endorsements, including those generated by artificial intelligence software.

From December, operators who have not applied for a licence must cease operations.

Endorsements and sponsorships are prohibited forms of advertising, regardless of licensing.

A February Department of Internal Affairs briefing to Minister Brooke van Velden, obtained by Newstalk ZB under the Official Information Act, shows officials gave specific advice on AI-generated content.

“These AI endorsements—including synthetic influencers, deepfakes, and other likeness-based representations—are increasingly used internationally and have already been observed in New Zealand, creating risks of consumer deception and contributing to gambling harm," Minister van Velden was told.

Officials said AI-generated ads, using people’s likeness, “can normalise gambling in ways similar to human endorsements” but also carried additional harms, including misuse of individuals’ identities.

The briefings stated that at the time, because AI-generated content did not involve a human being paid for the endorsement, they were not clearly captured by the prohibition on sponsorships.

“This creates a loophole in the advertising regulations, which we consider should be addressed,” the paper read.
Advertising restrictions came into force in July, after the briefing was presented.

Restrictions also prohibit ads during a live broadcast, or within 30 minutes before or after one. Sports and race betting advertisements and regulations fall outside of the Online Casino Gambling Act.

Specific concerns were raised over what officials labelled “synthetic influencers” - AI-generated personas created to look and behave like real people. Officials said these were highly customisable “as they range from hyper realistic personas to stylised cartoons or fantasy characters” and were particularly appealing to Gen Z.

Deepfakes were another concern, created by impersonating the identity or voice of a celebrity, influencer, or other individual without their consent. Officials said these created “substantial risk of deception” as they can be highly realistic, and appear to show an individual endorsing a product that they have no association with.

In the briefing, Minister van Velden was also told of specific examples.

“In April 2025, a video used the likeness and synthetic voice of Breakfast host Jenny-May Clarkson to endorse a gambling app, which also featured a deepfake of Taika Waititi,” officials said.

At the time, Clarkson went on TVNZ’s Breakfast to clarify it was not her speaking in the advertisement.

The Department of Internal Affairs paper added that introducing the specific ban on operators using a person’s likeness to mimic a human endorsement would “protect consumers from potentially harmful or misleading marketing practices”.

Gamboni said young people were facing particular risk of being drawn in by AI-generated celebrity endorsements.

Officials noted the issues associated with synthetic influencers and deepfake endorsements extended well beyond online casino gambling.

The maximum civil penalty for a corporate breach of the Online Casino Gambling Act is a $5 million fine.
People who see any advertising for online casino gambling, including celebrity endorsements, are encouraged to send a screenshot to the Department of Internal Affairs, DIA, to investigate.

Azaria Howell is a multimedia reporter working from Parliament’s press gallery. She joined NZME in 2022 and became a Newstalk ZB political reporter in late 2024, with a keen interest in public service agency reform and government spending.