New Zealand seeks 2% turnover tax from international betting operators

New Zealand is pressing ahead with plans to impose a point-of-consumption tax on international online gambling operators that take wagers from Kiwi punters.

Late last year, New Zealand Racing Minister Nathan Guy revealed the recommendations of an Offshore Betting Working Group that had been tasked with figuring out ways to allow the New Zealand Racing Board (NZRB) to better compete with international online betting operators.

Last week, the Department of Internal Affairs (DIA) published its Proposals to Amend the Racing Act 2003, which are based on the Working Group’s recommendations. The DIA is seeking public comment on the proposed changes until May 27.

Chief among the recommendations are lifting the existing restrictions on (a) the NZRB taking in-play wagers, and (b) the NZRB offering wagers only on sports represented by National Sporting Organizations (NSO) with which the NZRB has struck a deal. The recommendations also suggest letting the NZRB accept prop wagers on non-sport related “novelty prediction events.”