New Zealand Pushes Forward with 4% Increase in Tax for Online Gambling Operators

As New Zealand is still thrashing out the details about its online gambling framework, the government has revealed a tax increase, upping the original rate by 4%Image Source: Shutterstock.com

Moving forward, New Zealand will apply a 16% tax on its Offshore Gambling Duty, as confirmed by Minister of Internal Affairs, Brooke van Velden, who said that the measure was adopted to create a new funding stream for communities.

New Zealand Adjusts Tax on Gambling Ahead of Launch

Van Velden’s government has announced a plan to bring as many as 15 online gambling operators to New Zealand, creating a regulated framework and hoping to capture a part of the revenue that is landing at offshore operators, which have been running amok with few checks and balances.

The introduction of a regulated regime is supposed to rapidly improve the situation, sapping the black-market and bringing valuable cash to the state’s coffers. To achieve this, however, New Zealand would have to empower its local industry and make it more competitive in comparison to the black-market, which is a tall order that all major jurisdictions around the world have been struggling with.

“The message from communities was loud and clear – if we’re regulating online gambling, they want to see benefits flow back to local sports clubs, community groups and grassroots organizations,” the minister said, commenting on the importance of leveraging the industry as a source of income as well as an opportunity to potentially slash gambling harm.

New Zealand to Keep Track of How Regulated Gambling Is Affecting People

Van Velden acknowledged that the government will be looking into how online gambling may impact returns on other, licensed forms of gambling and whether there would not be detrimental consequences, including contributions to communities.

An evidence-based approach would be adopted to gauge the impact of online gambling regulation, and how this newly introduced vertical is affecting the existing ecosystem that relied on other gambling revenue and tax generation.