New Zealand Considers Updating Gambling Regulations

New Zealand may be looking to take the online gambling bull by the proverbial horns by introducing plans that would ensure complete regulation regardless of whether the operator providing the service is local or from another country via online casinos. This comes not long after New Zealand announced a 12% tax for offshore gambling.

New Zealand Proposes Total Regulation of Online Gambling

There is no clear status on the legality of online gambling in New Zealand over the past 20 years. The laws may bar local operators from providing gambling services if they don’t have a local license but there has been nothing to stop offshore operators from plying their trade in this country.

The first indication that this status quo may change came about earlier in March this year, with the New Zealand government indicating that it may be looking to regulate online gambling. A proposal was passed, which outlined broad plans: every operator – licensed local outfits as well as offshore operators – would be regulated and would have to pay taxes for their products and services.

By regulating online gambling New Zealand would finally get off that list of countries with no regulatory protocols. It would effectively join other countries like Canada, Australia, the USA, the UK and most European countries that are part of the ‘regulated countries’ list.

New Zealand’s Gambling Regulation Move – Why It May be Necessary

Regulating the online gambling industry in New Zealand is important, feels the government of the country. The reasons are not hard to zero in on – for starters, the laws don’t cater to offshore operators, which local operators naturally oppose.

In a statement earlier, New Zealand’s finance minister, Nicola Williams, said the gambling industry in the country was in a chaotic state and looked more like America’s Wild West. In her opinion, legalizing and regulating the industry would bring in revenue for the government and help formulate steps to guarantee the safety of vulnerable parties, including players at risk of gambling addiction.

The minister’s estimates paint a rosy picture – regulating the industry would add as much as NZ$193 million in terms of revenue to the State’s coffers; private sources put that number much higher, well within reach of the magical NZ$500 million. This would be possible because of the 12% tax that has been proposed. The law is set to come into effect later this month.

Regulating the New Zealand Online Gambling Industry – What are the Benefits?

There are a number of benefits to regulating online gambling totally in New Zealand. We list the important ones below for you.

Potential Licence Suspension in New Zealand

The biggest benefit of regulating the online casino industry in New Zealand would guarantee an upward spike in revenues thanks to the tax that would apply. There are differences of opinion regarding the tax rate still, though. While most lawmakers are comfortable with the 12% that has been proposed, there are others that feel the tax should be higher for online gambling, as much as 18%, in some cases.

The numbers vary wildly, of course, from a conservative NZ$193 million to a slightly wild NZ$716 million, a number that is being thrown around by the National Party, to the conservative NZ$35 million yearly, as proposed by the Inland Revenue Department.

Tackling the Issue of Problem Gambling

The Gambling Act of 2003 had as one of its primary objectives the task of reducing problem gambling in the country’s online gambling domain. However, the government, despite introducing provisions to help tackle the issue, couldn't proactively protect players as there was no regulation.

By regulating the industry the government would now be able to proactively fight the issue of problem gambling.

Providing the Shade of the Regulatory Umbrella to All Operators

Regulating the online gambling industry would give equal opportunity to all gambling operators who provide their services and products to NZ players. There would be rules that offshore operators would be required to follow, and they would all need a license and also a secure website.

There would be incentives plugged in to bring the best operators forward and negate the possibility of players being lured away by unsavory operators and black market casinos.

Finally, an Officially Secure and Reliable Online Gambling Environment

Another big benefit of regulating the industry would be the possibility for NZ players to access casinos that were earlier banned in their jurisdiction. These casinos would be allowed to operate only if they have the required licensing details.

A Quick Look at Existing Gambling Laws in New Zealand

Before we conclude, let us take a quick look at the existing gambling laws in New Zealand. The law that currently regulates gambling in New Zealand is the Gambling Act of 2003. This law regulates land-based casinos, lotteries and also sportsbetting in the country. However, there is no provision to regulate online gambling.

Offshore casino operators have used this situation to their advantage to cater to players from this country. A big advantage for them – they don’t have to pay taxes as the New Zealand government cannot tax an entity that exists outside its geographical boundaries. The new regulation would definitely take care of this situation for the government.