In a groundbreaking move, the New Zealand government has proposed a new tax on overseas online casinos operating in the country. The proposed tax, set at 12%, is part of the government’s efforts to address issues related to problem gambling and ensure that overseas operators contribute their fair share to the local economy.
The move comes after years of debate and discussion about the impact of online gambling on the New Zealand economy and society. With an estimated 80,000 New Zealanders regularly using overseas-based online casinos, there is growing concern about the lack of regulation and oversight of these operators.
According to Internal Affairs Minister Jan Tinetti, the proposed tax is aimed at leveling the playing field between overseas online casinos and their local counterparts. “Currently, overseas online casinos can offer their services to New Zealanders without paying any tax or contributing to our economy. This is not fair to local operators who are required to pay taxes and adhere to strict regulations,” Tinetti said in a press release.
The 12% tax is expected to generate significant revenue for the government, with estimates suggesting that it could bring in over $100 million per year. This revenue will be used to fund problem gambling support services, as well as other initiatives to address the social and economic impacts of gambling in New Zealand.
While the proposed tax has been welcomed by many in the gambling industry and among anti-gambling advocates, there are concerns about its potential impact on consumers. Some fear that the tax could drive players towards unregulated and illegal online casinos, which do not pay taxes or adhere to player protection measures.
In response to these concerns, the government has stated that it will work with industry stakeholders to ensure that the tax is implemented in a way that minimizes any negative impacts on players. This may include measures such as providing tax breaks for local operators and offering incentives for overseas operators to become licensed in New Zealand.
Overall, the proposed tax on overseas online casinos represents a significant step forward in the regulation of online gambling in New Zealand. By ensuring that overseas operators contribute to the local economy and adhere to the same standards as local operators, the government hopes to create a safer and more responsible gambling environment for all New Zealanders.
