IBIA calls for New Zealand licensing system to combat offshore operators
Integrity association says maintaining existing monopolies will “serve no useful purpose” in preventing offshore gambling
The International Betting Integrity Association (IBIA) has called on the New Zealand government to license domestic and overseas operators for sports betting.
In its response to New Zealand’s consultation on gambling reform, the IBIA dismissed three other options put forward by the NZ government as being “variations” on maintaining the monopoly model being used in the existing market.
The IBIA claimed maintaining this monopoly model will “serve no useful purpose” in addressing the issue of New Zealand players using offshore sites.
The New Zealand government proposed reforming the country’s gambling industry in August, as a way of combatting unlicensed offshore gambling sites targeting New Zealand citizens.
Four options were proposed by the New Zealand in its August consultation
Currently, Lotto NZ and the TAB are the only New Zealand-based gambling providers that can offer online gambling products to New Zealanders. While it is illegal for offshore online gambling operators to advertise in New Zealand, it is not illegal for New Zealanders to gamble on their sites.
Under the model that would license offshore operators, firms would be required to pay a point of consumption tax of 2% of turnover for the use of New Zealand racing and sports information.
The IBIA said this charge would not prove as effective in discouraging offshore operators from targeting New Zealand citizens. It also claimed that efforts to stop New Zealanders from gambling on offshore sites such as geo-blocking and public WIFI restrictions can be easily circumvented.
The IBIA voiced its support for a GGR-based method of taxation for licensed operators and claimed an open unlimited licensing model would be the most successful one for the market.
The consultation closed in September, with a decision on the preferred regulatory model expected in 2020