ONLINE GAMBLING FEES COST NEW ZEALAND MILLIONS

Published on January 18, 2016 in Industry News

new tax laws in New ZealandUnclear and “loose laws” in New Zealand are being taken advantage of by international online gambling companies and it’s causing the country to lose millions of dollars. It was proposed in November 2015 that offshore operators would be charged fees that would deter the companies from offering punters a “better deal”. 

As the number of punters within New Zealand grows daily, the country’s Offshore Racing and Sports Betting group has estimated that millions of dollars are being lost to international companies. The revenue earned by these companies is a big draw card for a change in gambling laws for the country.

The racing industry in New Zealand is supporting the proposed plans. "Australian corporate bookmakers aren't paying us any money and are free-riding on our product; all we want is a fair go and a fair fee for payment,” Greg Purcell, Chief Executive of New Zealand Thoroughbred Racing commented. “In New Zealand we really are quite cash-poor; we have a very small population and quite a substantial racing industry so we're going to put it primarily into prize-money and into the promotion of our sport.”

The hope is that all offshore gambling operators will adhere to the country’s current laws if the plan to charge fees is put forward. Chief Executive Officer of the New Zealand Racing Board, John Allen commented saying: “The large corporate bookmakers around the world that tend to be multi-national players are very experienced at making these sorts of payments back to industry. So, even though it would be extra-territorial, and so that creates some challenges, our expectation is that it would be largely voluntary compliance.”