Tuesday 24. November, 2015

New Zealand to Impose 3% Fee to International Gambling Operators

Australia, along with other international gambling operators, is impacting the revenue of local betting sites and New Zealand has now announced a plan to combat this. New Zealand plans to implement a three percent betting turnover fee for international gambling operators in an attempt to prevent international operators from offering their superior products and services to New Zealand punters.

Last year, Racing Minister Nathan Guy stated that his main concern was to increase revenue for the New Zealand Racing Board’s online TAB site. In April, he announced that the Offshore Betting Working Group would be created to find a way to reduce funds to international gambling operators.

The Working Group reported that $58 million in revenue goes to international operators from New Zealand punters, a rise from the $32 million that was spent in 2010.

“Our laws do not prevent New Zealanders from betting with overseas bookmakers, but this activity takes place outside of our domestic regulatory framework – a framework that requires New Zealand TAB operator to return its profits to sustain racing and sports in New Zealand,” stated Minister Guy.

On the other hand, “offshore providers makes no contribution to the local racing industry, to the New Zealand economy or to the problem gambling levy.” At the same time; however they are able to offer superior service. For example, during one State of Origin game in May, there were 45 betting options available through the TAB compared with 203 on the Australian online betting operator, CentreBet.

TAB claimed in the past that New Zealand punters are attracted to international operators due to their lower prices; however the report claims that only 13 percent of punters choose international operators due to pricing considerations with 33 percent claiming to have moved to overseas sites for the wider range of bets available.


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