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Summary:
- Experts say National’s proposed online gambling policy won’t be effective in minimizing harm
- National projects that an online gambling tax system would generate $179 million each year for the govt.
- Labour disagrees and says the projected figures are overestimated
Experts have cast doubt on plans by New Zealand’s National Party to regulate the country’s online gambling sector, saying measures proposed by the party are not enough to force operators to comply with the rules and minimize gambling harm.
The National Party aims to establish a new regulatory system for online gambling operators as part of its election manifesto. Under the plan, offshore operators will have to pay taxes to the government so they can legally do business in the country. The move is projected to generate $179 million in annual revenue for the New Zealand government.
National’s Online Gambling Tax Figures Overestimated
To determine how much tax they need to pay, online gambling firms will be required to register and report their earnings to relevant authorities. Those failing to fulfill their tax obligations will be prohibited from offering their services to New Zealanders and access to their websites will be restricted through a process called “geoblocking”.
The Labour Party has hit out at National’s tax plan, saying figures laid out by the opposition are overestimated. To meet National’s tax targets, there needs to be a four-fold increase in the number of local customers engaged in online gambling, according to Labour’s Kieran McAnulty and Barbara Edmonds. Labour has also poured cold water on a proposal to set up an online gambling regulatory framework, saying it cannot be done by 2024 as promised.
Proposed Regulatory System Won’t Work According to Experts
National’s deputy leader and finance spokesperson Nicola Willis has come to the defense of her party’s tax package, arguing that the black market is much bigger than what it currently looks like. There’s a massive market of non-licensed operators who are not paying any taxes to the government, and that’s what National is aiming to address, Willis said.
But National’s online gambling proposal also does not sit well with several experts in the field. As to the geoblocking measure, InternetNZ chief executive Vivien Maldaborn said it can easily be circumvented through the use of a virtual private network (VPN). VPNs enable users to hide their real locations, allowing them to access restricted sites.
Experts are also skeptical whether operators would actually comply with the rules. Dr. Andrew Chen, a research fellow with The Center for Informed Futures at The University of Auckland, said the government will likely struggle to force every offshore gambling firm to conduct its business within the law.
Chen said the proposed regulatory system must be complemented with strict measures to protect customers.
