New Zealand Losing Millions in Online Gambling Fees

Published Saturday, January 09, 2016 - Online-Casinos.com
New Zealand Losing Millions in Online Gambling Fees

In November 2015 New Zealand’s government considered imposing fees on offshore operators in an effort to prevent the offshore offering superior services to punters in New Zealand. .

The country’s Offshore Racing & Sports Betting working group estimated that $37.9 billion USD of gross betting profit is lost to offshore concerns annually with the number of punters in New Zealand betting at offshore operators doubling since 2010.

Now the New Zealand’s racing industry is putting their stamp of approval on plans to impose charges on offshore betting operators that take bets from New Zealand’s punters. Greg Purcell, Chief Executive of New Zealand Thoroughbred Racing, commented on the situation, "Australian corporate bookmakers aren't paying us any money and are free-riding on our product; all we want is a fair go and a fair fee for payment,” Purcell continued, “In New Zealand we really are quite cash-poor; we have a very small population and quite a substantial racing industry so we're going to put it primarily into prize-money and into the promotion of our sport.”

 John Allen, Chief Executive Officer of the New Zealand Racing Board, also backed the plan to change New Zealand’s current rules regarding offshore betting, commenting that there are expectations that  all overseas bookmakers will comply should new legislation come into law. Mr. Allen continued to say,  “The large corporate bookmakers around the world that tend to be multi-national players are very experienced at making these sorts of payments back to industry. Allen added,  “So, even though it would be extra-territorial, and so that creates some challenges, our expectation is that it would be largely voluntary compliance.”

Big online gambling operators are taking advantage of the loose laws in New Zealand and in other jurisdictions making profit where the law allows for this kind of business. Revenue going offshore is the biggest argument that legislators have to change gambling laws for the betterment of local economies.

 

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