Government’s Online Gambling Regulation Plan
The New Zealand government has unveiled its plan to regulate the online gambling industry, sparking concerns among local casino operators. The proposed framework includes issuing 15 licenses for online casino operators, with these licenses to be auctioned to the highest bidders.
This move comes alongside the National Party’s campaign promise to impose a 12% gaming duty on gross betting revenue for offshore online casino operators. Closing this tax loophole is expected to generate $179 million annually over four years, totalling $719 million. However, with approximately double the number of operators currently active in New Zealand, the competition for licenses is expected to be fierce.
Local Casinos Fear Foreign Dominance
Local operators worry they could be outbid by offshore companies with substantial financial resources. These concerns stem from the belief that foreign operators, without ties to New Zealand, may lack the same commitment to community welfare and regulatory compliance.
Jason Walbridge, SkyCity’s chief executive, expressed support for a competitive market but stressed the importance of prioritising local businesses. “We’re a trusted brand in New Zealand. Kiwis know who we are,” Walbridge said in an interview with Nine to Noon. He urged the government to consider the economic and social benefits of licensing New Zealand-based operators.
“Offshore operators are massive companies with deep pockets. They can outbid local businesses easily,” Walbridge warned. He highlighted the need for the government to prioritise local operations to safeguard jobs and ensure compliance with host responsibility and anti-money laundering regulations.
Limiting Licenses: A Double-Edged Sword?
The government’s decision to cap licenses at 15 was met with mixed reactions. Walbridge noted that fewer operators would reduce aggressive marketing and excessive advertising. “No one wants to wake up to gambling ads on every device,” he said.
Brett Anderson, CEO of Christchurch Casino, echoed these concerns, arguing that the current plan overlooks the long-term benefits for New Zealand. While he acknowledged that local casinos are profit-driven, Anderson emphasised their deeper ties to the community. “Our employees live and work here. We have a social license to uphold and a door regulators can knock on,” he said.
Call for a New Approach
Both executives stressed that local operators are better positioned to minimise harm and maintain New Zealand’s social and regulatory standards. They called on the government to consider mechanisms beyond auctions to ensure licenses benefit the community, such as prioritising operators with local investments and commitments to responsible gambling.
As the online gambling landscape evolves, the government faces a critical decision: balance the allure of high auction bids against the long-term welfare of New Zealand’s economy and communities.
