New Zealand to introduce Point of Consumption tax to offshore operators
The New Zealand government is getting tough with offshore betting companies following concerns that the racing industry in the country is struggling to keep afloat because of the loss of betting to overseas operators.
It is to introduce a consumption charge for offshore operators taking bets from residents in New Zealand, estimates by the government say that 40,000 New Zealanders bet online with offshore operators spending annually over $500 million and losing some $58 million a year.
That says the government represents a loss to the racing industry here of at least $45 million.
“These changes will help create a more level playing field for the TAB in the face of offshore competition, and ensure that offshore operators pay their fair share back to our communities,” Racing Minister Nathan Guy said. “This system ensures any proceeds from gambling go back to the local sporting and racing activities that make that gambling possible in the first place, and that punters operate within a regulatory framework that minimises gambling harm.”
The consumption tax is expected to be around 2% of each operator’s turnover, The New Zealand racing industry generates some $1.6 billion in gross domestic product and providing for 17,000 full-time jobs and the move by the government is hoped to ensure those jobs and figures are protected.