New Zealand targets offshore operators with new racing tax

Offshore operators taking bets on New Zealand racing could soon be subject to a new point of consumption levy and royalty fee under government plans announced today.

New Zealand’s Racing Minister Nathan Guy unveil plans to amend the country’s Racing Act 2003 in an effort to protect the TAB from increased competition from offshore bookmakers.

The proposed legislative changes include introducing a charge for offshore gambling operators using New Zealand race data and a consumption charge for oversees operators accepting bets.

The rate of the fees are still subject to consultation but the government said each of the charges will likely be 2% of turnover.

It also announced it intends to remove the prohibition on the TAB taking bets during a race, which is currently possible in other sports.

“A growing number of New Zealanders are now gambling through offshore betting agencies who make no contribution back to our communities,” says Racing Minister, Nathan Guy.

“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,” he added.

The announcement was also welcomed by the country’s three racing codes – New Zealand Thoroughbred Racing (NZTR), Harness Racing New Zealand (HRNZ) and Greyhound Racing New Zealand (GRNZ).

“This represents a significant step forward for our industry and is something all industry bodies have been advocating for some time,” NZTR chairman Dr Alan Jackson said.

“The proposed changes will make the industry more competitive in an increasingly complex wagering market and provide real benefits for our stakeholders.”