The government plans to auction off licences for online casinos, but is proposing a range of regulations to minimise harm and boost tax revenue.
Internal Affairs Minister Brooke van Velden has outlined the system to be applied to online casinos, with a limited number oflicences available for three-year terms with operators required to meet certain standards before offering services.
New Zealand-based online casinos are illegal at present, but SkyCity Entertainment operates one based in Malta and has long called for a regulated industry.
“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.
The country’s only casino company, SkyCity, has long called for a regulated industry to allow it to compete with foreign operators, and increase its market share.
SkyCity set up its online business through a Malta based subsidiary in 2019, but recently sold its 10% stake in the site’s founder and operator.
The company did not have any immediate comment, but previously had said requiring online casino operators to pay their fair share of tax with an offshore gambling duty a “welcome” first step towards a level playing field.
SkyCity set up its online business through a Malta based subsidiary in 2019, but recently sold its 10% stake. Photo / Dean Purcell
“SkyCity looks forward to a regulated market, where harm minimisation is one of the primary objectives.”
A research report by investment house Forsyth Barr said it expected the tax rate on online operators would at a higher rate than land-based counterparts, but that any new regime would be positive for SkyCity.
Last month, a problem gambling organisation highlighted that children as young as 11 were gambling online and racking thousands of dollars of debt.
