As New Zealand makes online casinos legal, overseas taxes ramp up
New Zealand is all but set to launch its domestic and regulated online casinos framework, and the government is boosting its Offshore Gambling Duty tax in preparation for that launch.
Online casino gambling in New Zealand hasn’t been legalized domestically to this point, but that hasn’t stopped the country’s citizens from using offshore alternatives for their betting needs. New Zealand charges an Offshore Gambling Duty for the usage of these platforms, but they aren’t regulated by the country. This is set to change as New Zealand plans to introduce regulated domestic online casinos, and the country has also increased the Offshore Gambling Duty with the aim of making the new domestic alternatives all the more attractive.
New Zealand to license up to 15 gambling operators
Much of the money spent in gambling and betting that might be used for New Zealand’s benefit and growth is instead moved out overseas because of the lack of a domestic alternative. The government has decided to license domestic operators for online casinos that will be regulated by New Zealand as a way to better keep these funds at home. This could be to the country’s financial benefit, while also increasing domestic consumer protections by enabling the government to better regulate betting operators.
New Zealand residents are spending big digitally, including hundreds of millions of dollars annually on online casinos that aren’t regulated by government forces. This lack of local regulation can potentially leave players exposed, and that gap in protection is a natural consequence of these online casinos not being based within the country. Foreign operators are able to go about their business, sometimes with appropriate oversight.
The Offshore Gambling Duty increasing from 12% to 16% will both bring additional revenues to the country, and further opportunities for the companies that will be coming into play domestically once those options are launched and live.
The government has made clear that these new potential sources of revenue will be used to better local communities. Examples given include the money being used to fund such projects as local sports clubs and community support groups. Government representatives has consistently reinforced the idea that the country’s citizens would rather the money involved in online betting be used for local efforts New Zealand than head overseas.
While critics will always be present any time new tax increases are proposed and come into effect, local ministers insist that the focus is on creating more opportunities for domestic operators and to help protect consumers from harm. Meaningful rules and regulations will be implemented to ensure there are better protections in place for those who do choose to bet online. This new framework for legalized betting domestically and increasingly taxed offshore online casinos could provide New Zealand with an economic boost and benefit the local citizenry, while continuing to provide bettors with opportunities to play as they like.
Feature image credit: New Zealand Government
Khizar Mundia has been playing video games for as long as he can recall. Things have come a long way since the many days he spent playing the original NES, though. He now covers a variety of competitive games and esports, as well as the world of streaming, ranging from Twitch to Kick. If it’s of interest to gamers, it’s of interest to Khizar.
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