New Zealand wants new online casino rules. Currently, many New Zealand casinos are outside the government’s control, with people often playing on websites from other countries. To fix it, New Zealand’s government is planning to introduce new rules. To help you understand what these changes mean, CasinoRater experts conducted research in the following text below. 

Current Market Status in New Zealand

Most online casinos are foreign in NZ. At the moment, there isn’t a clear system to control them. The government can’t always protect players.

Proposed New Regulations Highlights

Brooke van Velden wants safe online gambling. The rules make it harder for unsafe foreign casinos to operate in NZ. Here’s what each rule means in simple terms.

• Online casino licenses: Only casinos with special licenses can legally run in NZ. The government can check if the casino is safe and fair. Without a license, casinos won’t operate.
• Limited number of licenses: Only a few casino operators will get licenses. Regulations help the government keep a close watch on casinos operating in NZ. Every three years, casinos must renew their licenses. They have to strictly follow the rules to stay open.
• Types of games allowed: Only traditional casino games, like slots and table games, are allowed under these new rules. Sports betting and lottery games are not included.
• Advertising rules: Licensed casinos will advertise, but there will be strict limits. Ads can’t target young people. Also, casinos won’t be allowed to sponsor events to show gambling out of kids’ view.
• Age limit: Only people who are 18+ are eligible to play online casino games. The rule protects younger people from the risks of gambling.

New Offshore Tax Duty

New Zealand’s new offshore tax rule controls online gambling, bringing more money for the government. Starting in July 2024, any international online casino operators making over NZ$60,000 a year must register and follow New Zealand’s gambling laws. These operators will pay a 12% tax on profits from Kiwi players, in addition to New Zealand’s Goods and Services Tax (GST). Together, the taxes add up to nearly 25%

Impact on Online Casino Operators

The offshore tax duty is likely to bring big changes for online casino operators. These changes mean casinos might become quite expensive and offer fewer options, but the funds support safer gambling.

• High costs: Foreign casinos making money in NZ will pay extra taxes. This makes it expensive for them to continue running here​.
• Fewer rewards and bonuses: To manage these higher costs, offshore casinos may offer fewer perks. Players might see fewer welcome bonuses or free spins because these extras will cost casinos too much.
• Casinos leaving: Casinos might decide to stop operating in the country if they think it costs too much to stay. It means fewer choices.
• Minimise harm support: The tax fund programs will support responsible gambling. It encourages safe play to avoid problems with gambling.

Consumer Protection and Responsible Gambling

Protecting players is a major goal of New Zealand’s new regulatory overhaul. The rules encourage responsible gambling by providing players with safer options and setting strict online casino standards.

The tax money goes toward programs that assist people who struggle with gambling. These programs teach safe ways to gamble.

Casinos outside NZ must register and attain the legal status of online gambling in order to serve Kiwi players. Only trusted casinos can offer games. Players don’t get tricked.

Registered casinos also have to keep games fair and limit ads, especially for younger people and those at risk.

Government leaders like Brooke van Velden propose a safe gambling environment. New rules will help them watch over casinos better and build a safer space for Kiwi players.

Economic Implications for New Zealand

New Zealand’s new tax on offshore casinos definitely has economic implications for the economy in many ways.

Taxes bring millions of dollars into New Zealand each year. Offshore online casinos must pay a tax on the money they get. The government can use the money for important projects, like helping people with gambling problems.

New tax regulations make it easier for New Zealand casinos to compete with offshore casinos. Online casinos in NZ might result in jobs and businesses.

Offshore online casino operators may have higher costs because of taxes. Casinos in NZ might decide to offer fewer services to players if their profits go down.

Potential Challenges

New online casino rules will bring tough challenges. These show how New Zealand’s government is working hard to create safer gambling.

• New rules mean online casino operators will need to pay for licenses. These costs can be high, especially for smaller businesses. Foreign casinos may disregard entering New Zealand’s market if it’s too expensive.
• New Zealand only gives a set number of licenses to casinos. Fewer licenses mean less competition. There may not be as many options.
• Many online casinos are based outside New Zealand. It can be hard for them to pay taxes to New Zealand, even though they serve New Zealand players.
• Online casinos might raise fees to cover the costs. High fees make online gaming less exciting for Kiwi players.
• With new rules coming, everyone will need to learn and adjust. All these might create confusion at first.

To Sum Up

New Zealand’s new plan for online casinos is about keeping players safe. It makes sure games are fair. The government wants to regulate online casinos by 2026. This includes paying taxes, getting licensed, and following responsible gambling practices. The new licensing system for online casinos will watch over casinos operating in New Zealand. It will protect people from risky, unfair practices while they enjoy gambling in NZ.