The internet gaming sector in New Zealand is about to undergo a major transition. In order to replace the present uncontrolled environment that is dominated by offshore operators, the government has announced plans to implement a regulated licensing system. By taking this action, tax income that was previously lost to overseas platforms will be recovered and a safer gambling environment will be created.
According to Brooke van Velden, minister of internal affairs, there will be an open bidding process for 15 internet casino licenses. For the first time, this represents a historic change that permits both domestic and foreign businesses to lawfully enter the market.
Tax Requirements and Industry Concerns
In addition to GST and a problem gambling fee, licensed operators would have to pay a 12% gambling tax. They will not have to pay for community grants, though, which has angered local stakeholders.
Additionally, the new rules forbid unlicensed offshore platforms from focusing on players in New Zealand. Fines of up to $5 million could be imposed on anyone who break this law. Although the goal of the measure is to encourage responsible gaming, local gaming enterprises are debating it.
Businesses like SkyCity and the TAB are concerned that granting 15 licenses will harm domestic operators by attracting foreign competition. SkyCity has suggested limiting the number of licenses to five in order to give preference to local companies.
Despite these concerns, van Velden has rejected restrictions favoring domestic companies, citing conflicts with international trade agreements. She also defended the exclusion of mandatory community grants, stating that essential public services should not depend on gambling revenue.
With the government moving forward with the licensing plan, New Zealand’s online gambling market is set for its most significant regulatory change yet.
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