Regulating NZ Gambling Industry: Pros & Cons

Gambling Industry

Gambling is a flourishing business in New Zealand, with millions of Kiwis favoring Poker as their favorite casino game. In New Zealand, the Gambling Commission of New Zealand regulates online casino sites, and all gambling activities come under the Gambling Act 2003. According to the Act, participating in online gambling games is not illegal. You must be at least 20 years of age to be considered a legal citizen to gamble in New Zealand. An important point to note is that remote gambling through communication devices is prohibited, which is different from remote foreign gambling. According to the Act, remote foreign gambling is not prohibited. So, if you participate in gambling on a website that is based overseas even though you are in New Zealand, it is not illegal.

In this article, we will discuss how the execution of the Gambling Act 2003 has played a significant role in the Gambling Sector.

Pros of Regulation in the Gambling Industry:

Protection of the Players:

One of the major advantages of regulating the gambling industry is invariably the protection of gamblers. To operate in New Zealand, Casinos must be licensed and registered by the New Zealand Gambling Commission. These licensed casinos are required to ensure privacy to their players and guarantee the protection of their personal and banking details under high security.

Thus, when it comes to gambling, if you are using licensed casinos, you can rest assured of being protected by these proper regulatory measures.

Tax Exemption on Money Won:

In New Zealand, playing casino games is considered a hobby; therefore, there are no taxes imposed on the gambling winnings or lottery money, and this rule applies to online and offline winnings. According to Income Tax Act 2007, no money earned from online gambling is taxable. This is another advantage of regulation in the gambling industry. However, there is an exception to this rule. If you have decided to invest or save the money won into a bank, the return on that investment will be considered taxable income. Also, if you are a professional poker player and gambling is your primary income source, you are required by the law to pay taxes. However, there is no way for the gambling commission to find out the profits that you earned through gambling.

Cons of Regulation in the Gambling Industry:

Ineffective prohibition on Advertising: 

According to section 16 of the Gambling Act 2003, advertising overseas gambling is prohibited. Any communication that publicizes or promotes gambling or an overseas gambling operator is considered an overseas gambling advertisement. It also includes any communication that is likely to cause people to gamble outside New Zealand. This prohibition is of no use as overseas gambling operators can promote their services from outside of New Zealand and as it is legal for Kiwis to participate in gambling on casinos based overseas.

Gambling

Addiction to Gambling:

As gambling is considered a legal activity, many people who would otherwise not be interested might be attracted to try a hand at gambling. This may cause addictive behaviors in people where they come back to bet. This behavior can quickly turn into a habit, which might prove challenging to quit. In extreme situations, bettors may go bankrupt as they are dealing with real money. The legalization of gambling in many countries has led to increased promotion of them in public, and this exposure may easily influence youngsters and lead them to bet at a young age.

Leave a Reply

Your email address will not be published.