New Zealand Proposes Restrictions on Offshore Gambling

In a move designed to protect the government-monopolized local racing industry, the New Zealand government has proposed restriction of online overseas betting.

Deprivation of Revenue

The proposal comes in response to concerns that offshore online betting by New Zealanders is depriving the local racing industry of income.

NZ Racing Minister Nathan Guy announced that former National MP Chris Tremain will head the working group that will review said activity. According to a New Zealand Herald Report, the monopoly which the Totalisator Agency Board TAB holds on racing and sports betting requires the Racing Board to distribute profits back to the racing industry.

Wagering activity out of New Zealand has proliferated among offshore sites, with the largest concentration taking place in Australian online parlours.

Guy identified the issue of offshore organisations profiting from New Zealand’s racing and sports without paying taxes to the government nor contributing to the local industry.

Recurring Issues with Offshore Operators

This echoes a common concern for government when it comes to offshore operators, who have been able to operate in the gray area of online commerce in the early stages of the new era of online betting. The ability of operators to provide games and attract clients from offshore locations which are tax-free is a habit which the New Zealand government believes ultimately serves to undermine opportunities for investment and employment in the industry on the local shore.

Another disparity in conditions for online operators currently is the lack of responsible gaming guidelines governing offshore operators, ethical guidelines which are designed to protect the most vulnerable members of the population, such as youth and recovering addicts. Government guidelines are sources for mandated warnings or prohibitions against underage gambling, as well as requirements for links to addiction websites and related support information.

ETA for Results

The estimated time of delivery of the working group's recommendations studying the proposal is sometime in September.