The Act includes a rule that requires casinos to fund problem gambling efforts in the country. However, it’s unclear whether either company will be successful in obtaining one of these licences. Van Velden has made it clear that New Zealand companies will not get preferential treatment over international ones. They were operating offshore "essentially to get around our law because they’ve been waiting for this regulation to happen", Froude said. The aim of Internal Affairs Minister Brooke van Velden’s amendment to the 2003 Gambling Act is to harness tax revenue and gain some measure of harm-mitigation. They are not illegal, but they are not licensed here so it is illegal for them to advertise to Kiwi punters.
If they win the election, they plan on introducing the changes on July 1st, 2024. "The department recommends that you immediately cease posting any reference to overseas online gambling or gambling operators to your social media," the letter said. Many of the offshore casino sites were using Māori social media influencers to target Māori gamblers, wikipedia.org she said. “SkyCity has long supported regulating online play to minimise harm and protect Kiwis.
What’s the Best Approach to New Zealand’s Offshore Casinos Taxation
If everything aligns correctly for the National Party, we could see these changes roll out on July 1st, 2024. To be clear, that’s probably because the NP only has the basic draft at the moment. If the taxation plan actually comes into force, several choices will have to be made.
Let’s consider several examples of online gambling industry regulation in other countries, that have led to success. New Zealand’s National Party bonus released a global taxation plan on Wednesday, August 30th. With it, they plan to tax offshore gambling platforms as a part of their $14.6 billion tax plan.
New Zealand to launch online casino licensing regime by 2026
New Zealand doesn’t receive revenues from offshore casinos that operate within its borders. This explains why the government plans to update its online gambling laws. The government was now moving to regulate the online casino gambling industry for the first time, offering up 15 licenses which would be sold off at auction in a new market expected to launch in February 2026. Because the online gambling market was not regulated, New Zealand authorities had no ability to enforce harm minimisation or consumer protection standards, Scott said. In addition, licensed gambling operators will be allowed to advertise, but with strict limits in place. Unregulated offshore gambling platforms have targeted people in New Zealand for many years without facing any retribution and the authorities have generally turned a blind eye to these operators.
- An additional important factor is the variety of bonuses a casino offers.
- A valid license from New Zealand will help players distinguish safe operators from frauds.
- The new changes will ensure licensed operators follow all the rules that protect players.
- This decision comes at a time when it’s never been as important to have safer and more controlled gambling options.
This shouldn’t be an issue for reputable operators, meaning we can expect the biggest brands to join the NZ market as soon as possible. The licensing will strictly cover online casino gaming, excluding sports betting and lottery offerings. “This is not intended to increase the amount of gambling New Zealanders do but to ensure operators meet requirements for consumer protection and harm minimisation, as well as paying tax,” Van Velden said.
It introduced regulation to land-based casinos, sports betting, and lotteries. There are many estimates out there, but no one can say for sure just how many NZ residents use offshore gambling sites. These websites aren’t properly regulated and they don’t provide detailed reports of users’ activity. This means that the exact number doesn’t exist anywhere; all we have are assumptions. Casinos outside NZ must register and attain the legal status of online gambling in order to serve Kiwi players.
"I think the DIA actually needs to fine them – fine these influencers and the gambling operators – and just send a really clear message that they’re breaking the law," spokesperson Andree Froude said. Under the Gambling Act it is illegal to publish an advertisement for an offshore gambling operator. The Department of Internal Affairs (DIA) said it had issued its first-ever takedown notices amid a surge in influencers promoting overseas gambling operators. Businesses like SkyCity and the TAB are concerned that granting 15 licenses will harm domestic operators by attracting foreign competition.
These proposed changes to the Gambling Act are set to provide greater confidence to players in NZ and more opportunities for operators to market and promote themselves. Interestingly, the SkyCity Entertainment Group, which owns SkyCity Queenstown, SkyCity Hamilton, and SkyCity Auckland, holds an online gambling license in Malta. It uses this license to offer gambling games to its large customer base in Kiwi land.
The Department of Internal Affairs will have to enforce the rules carefully, including the introduction of licenses and limits on advertising. In the run-up to this contest, 54-year-old Luxon had criticized governing Labour Party opponent Chris Hipkins for failing to collect much-needed tax revenues from offshore online casino operators. New Zealand is home to approximately 5.4 million people and has up to now only regulated online gambling and sports betting via sites operated by the state-controlled Lotto NZ and New Zealand Racing Board.
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