A new amendment has been added to the national gaming law, Racing Act. Under the updated legislators, the government of New Zealand will be able to charge offshore casino and betting operators.  The new tax is expected to collect 2 percent of the iGaming revenue held in foreign platforms.  Offshore gaming operators will be charged with a percentage when they use local race data and when they take bets from authorized New Zealand players.  National information about the racing industry has not been set yet, but the government will establish it to charge for the use of racing products.  “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,” commented Nathan Guy, Racing Minister.  “This system ensures any proceeds from gambling go back to the local sporting and racing activities that make that gambling possible in the first place, and that punters operate within a regulatory framework that minimizes gambling harm.”

   The new amendment also bans in-play bets in the TAB operations (bookmaker’s activity) but expands the current portfolio of sports for the betting industry.  A complete gaming regulation to control this sector is being drafted by national legislators.  According to a New Zealand Working Group, 40,000 New Zealanders placed bets of US$363 million in offshore platforms in 2015.  The study shows that the government has lost US$32 million in tax revenues.  Meanwhile, the local racing industry has been going through a small decline in its revenues.  However, the New Zealand racing sector is highly profitable in the country.  Operators have collected NZD$1.6 billion in gross domestic product.  Furthermore, the international press highlighted that the industry provides 17,000 full-time jobs.