In a ground-breaking move, New Zealand’s authorities have announced that they’re planning to start to regulate the online casino industry. According to the details, the new regulatory framework is set to go into effect in 2026 and will restrict unlicensed operators from offering their services to Kiwi players.
The Goal is To Minimise Harm and Increase Tax Collection
While speaking on the development, Brooke van Velden, New Zealand’s ministry of internal affairs, said that operators that don’t have a domestic licence won’t be able to operate on the NZ market. The goal of the new regulatory framework is to increase customer protection and tax collection.
Authorities will be able to block unlicensed sites and thus, minimise harm to consumers. Due to the fact that the online gambling industry is unregulated at the moment, there are a lot of scam sites that lure NZ players.
While speaking about the plan, Van Velden noted that the ministry of internal affairs will be responsible for regulating gambling sites. Licences will be issued through auctions and their number will be limited. Bidders will also have to meet regulatory requirements.
Additionally, the NZ government stated that the licences will be issued strictly for casino gaming. They won’t cover lottery or sports betting products. Currently, the sole provider of sports betting (and horse racing) in New Zealand is TAB.
Back in March 2023, TAB NZ penned a 25-year strategic partnership with Entain, which saw the former boosting sports betting, horse racing and communities for a generation. Mark Stewart, the chairman of TAB NZ stated that the board gave its full support to the partnership.
Authorities Don’t Want to Increase the Number of Gambling Operators
Van Helden stated that New Zealand’s government doesn’t want to increase the number of gambling operators in the country. That’s the reason why the licences will be limited. The minister also noted that the public will be able to provide feedback on the matter.
SkyCity Entertainment Group, one of the biggest gambling operators in New Zealand, voiced its support for the endeavour. In a LinkedIn post, the company’s CEO, Jason Walbridge, stated that SkyCity has been supportive of these initiatives and that they’re happy that this will “minimise harm and protect Kiwis.”
Adverts are also rumoured to be limited, alongside the number of operators and Walbridge stated that these limitations are also a good way to protect the players.
In conclusion, Walbridge noted that at the moment, there’s a lot of money that goes offshore when in reality, it should stay in New Zealand “as tax and community benefits.” That’s why he believes that the new regulatory framework will ensure that the country reaps all the benefits.
New Zealand’s Parties Clashed Over Offshore Gambling Operators
Gambling and offshore online casinos have been a hot topic in the recent period in New Zealand. Back in August 2023, the two leading political parties clashed over the revenue that offshore operators generate.
The National Party argued that it can collect as much as NZ$179 million annually via its NZ$14.6 billion tax relief plan. Back then, the party’s deputy leader, Nicola Willis, stated that the money would be raised by closing several loopholes which would ensure that offshore operators pay their taxes.
Additionally, the party argued that goods and services tax wasn’t being collected at the time. Of course, Labour disputed it by saying that GST generates approximately NZ$40 million each year.
Barbara Edmonds, a spokesperson for the revenue and internal affairs of the Labour Party even doubled down by saying that there’s “no tax loophole on online gambling from offshore.”
A lot has changed since then, though. These clashes were before the elections in October 2023. The National Party won those elections and from the looks of it, it seeks to find an effective solution for online gambling.