Gambling Operators Push for Changes to New Zealand iGaming Plans
Expertise: Global Gaming, Asia Gaming, US Gaming, Sports Gambling
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SkyCity has formally requested that the number of online gaming licenses be limited to five and granted only to operators with a physical presence in New Zealand. The company has raised concerns over potential tax avoidance issues if foreign operators are allowed to participate without establishing a domestic base. SkyCity argues that limiting the licenses to New Zealand-based companies would ensure that tax revenues remain within the country.
Internal Affairs Minister Brooke van Velden has rejected SkyCity’s request to reduce the number of licenses, stating that the goal is to establish a fair and regulated market. She has emphasized that all operators should have an equal opportunity to bid for a license, regardless of whether they have been established in New Zealand for years or are entering the market for the first time.
TAB has also expressed opposition to the government’s proposal. The company’s Chief Executive, Nick Roberts, has raised concerns that issuing 10 or more licenses would effectively create an open market, which he believes could undermine the viability of existing domestic gambling operators. Roberts has warned that allowing a large number of foreign operators to enter the market could benefit multinational organizations at the expense of local businesses.
Keep the Market Domestic
TAB has further argued that the proposed licensing structure could pose a risk to the funding streams for New Zealand’s racing and sports industries. The company has advocated for a licensing framework that would restrict the number of operators to between five and seven, with a preference for New Zealand-based companies. According to TAB, without such restrictions, domestic operators could face significant challenges in competing against multinational corporations with greater financial resources.
Van Velden has maintained that the government’s objective is to implement proper regulations that enable people to participate in online gambling safely within a controlled market. She has stated that while ensuring player protection is a priority, the government does not want to impose excessive restrictions that would discourage people from engaging in the regulated market.
The minister has reaffirmed her commitment to creating a balanced regulatory environment that allows competition while safeguarding consumer interests.
RELATED TOPICS: Regulation
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