IBIA calls on New Zealand to implement an international gaming license system

Published by Daniel on October 13, 2019 in Industry News

New Zealand RegulationsThe online gambling market has grown and expanded rapidly across the globe the past few years. 

New Zealand recently held a consultation to discuss their changing gambling regulations and what improvements might be made.

Among the many requests there was a call for New Zealand to adopt an international gaming license system.  

Betting organisations say their piece 

Many betting companies gave their opinion on the new legislation New Zealand is looking to implement. One international betting organisation has asked that the New Zealand government switch to a regulatory structure that would enable international operators to acquire a license.  

The International Betting Integrity Association (IBIA) stated that this structure has been used in many other markets in the world and been very successful. They urged New Zealand to follow suit and allow a wide range of gambling products in their new iGaming market.  

The public consultation was launched to widen the number of permitted operators allowed to offer online betting services in the country. At the current moment TAB and Lotto NZ are the only two organisations allowed to offer online gambling services in New Zealand. Both of these organisations are run by the state and with the change in legislation there will no longer be a monopoly on the iGaming market within New Zealand.  

One of the many reasons for the change of legislation is due to the fact that many residents are choosing to play at foreign sites despite the legalities. The IBIA’s statement was in response to the New Zealand consultation which has now come to a close.  

Taking the proportional approach 

The IBIA also suggested that New Zealand should take a proportionate approach when it comes to taxation. They urged the government not to view it as a revenue raising tool. One of their arguments was that if taxation was set too high many operators would be reluctant to pay for a license within the country.  

Another potential hurdle in the new legislation was the heavy restrictions placed on the types of gambling that would be permitted. According to the IBIA limiting the available betting options will only drive local players to offshore providers. They suggested that the government ease up on betting limitations or they will continue to lose local players to foreign operators.  

Follow by example 

The IBIA pointed to the structure implemented by the UK as it was very effective. The British Gambling Commission allows all types of betting while still implementing severe regulations. According to the IBIA the British model is regarded as one of the best in the world as it incorporates code of practice, exchange and receive of information and prosecution when necessary.  

At the current moment the New Zealand government are struggling to find a middle ground on their regulatory reform. They’ve put forward four possible models for regulatory reform of which the IBIA have condemned three. The three condemned by the IBIA were all considered regulatory reforms that would keep the existing monopoly in place.