NZ online gambling tax plan could face legal hurdles, experts say

A proposal to regulate and tax online gambling in New Zealand may require legislative changes.

New Zealand.- A proposal to regulate and tax online gambling in New Zealand has come under scrutiny for potential legal complications. A proposal to tax offshore platforms has been made by the National Party as part of their pre-election tax policy ahead of the upcoming general election on October 14.

However, legal experts argue that the proposal would require legislative amendments. The National Party wants to mandate online casino operators to register and report their earnings. Non-compliant services would face IP geoblocking measures. They estimate that the move could generate approximately NZ$179m (US$105m) a year, which could offset other proposed tax cuts.

However, New Zealand’s Gambling Act forbids the approval of new casino licences or expanding casino gambling opportunities but does not mention online gambling, which would require the law to be amended first. Rachel Piper, a tax partner at KPMG, emphasised the complexity of addressing the online gambling tax loophole and the need for careful consideration. 

Members of the Labour Party have also raised concerns, suggesting that achieving the estimated revenue would require a significant increase in online gambling activity.

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