New Zealand Increases Tax Rate for Online Gambling Operators to 16%

New Tax Policy for Online Gambling in New Zealand

New Zealand has announced an increase in the tax rate applied to offshore online gambling operators, raising it to 16%. This adjustment, confirmed by Minister of Internal Affairs Brooke van Velden, aims to generate new sources of funding for local communities throughout the country.

Establishing a Regulated Online Gambling Market

The government plans to legalize and regulate up to 15 online gambling operators within New Zealand. This move is designed to create a controlled market environment, allowing the country to reclaim revenue currently lost to offshore platforms that operate without sufficient oversight.

By implementing a regulated system, New Zealand hopes to reduce illegal gambling activities and channel more tax income into public funds. However, to make this successful, the local market needs strengthening to compete with the unregulated operators—a challenge faced by many regulatory authorities globally.

Minister van Velden emphasized community interests, noting that residents expect the benefits from regulated online gambling to support local sports, grassroots organizations, and various community groups.

Monitoring the Effects of Regulation on Gambling Behavior and Revenues

The government intends to carefully observe how the newly regulated online gambling sector influences existing gambling avenues and overall community contributions. An evidence-driven strategy will be used to assess whether introducing this regulated segment affects tax revenues from traditional gambling and to evaluate any social impacts caused by the regulation.