New Zealand Urged to Adopt International Gaming Licence System

An international betting organisation has called for the New Zealand government to switch to a regulatory structure that would allow international operators to gain a licence. The International Betting Integrity Association (IBIA) pointed to success of other markets around the world, and urged New Zealand to follow suit by allowing a wide range of gambling products.

New Zealand launched a public consultation into widening the number of permitted operators allowed to offer online betting services in the country. At present, just two organisations, TAB and Lotto NZ are the online firms allowed to offer online gambling in New Zealand. However, the government has been forced to accept that a growing number of residents are circumventing the restrictions by using offshore providers. The IBIA statement was issued in response to the New Zealand consultation which finished on 30 September 2019.

Proportional licensing system 

IBIA has pointed to a number of other countries which successfully manage a licensing model that permits overseas companies to operate. Denmark, the UK, Sweden and Spain are all examples of nations which have adopted the regulatory regime which IBIA are pushing New Zealand to use.

The body also suggested that New Zealand should ensure they take a proportionate approach to taxation, rather than viewing it as a “revenue raising tool”. The IBIA cautioned that if taxation was set too high, operators would be reluctant to apply for a licence in the country.

Heavy restrictions on what type of gambling would be permitted was also cited as a potential hurdle by the IBIA. The body warned that if the New Zealand government were too heavy-handed in limiting the available betting, players would simply continue to go to off-shore providers who offered the market they were looking for.

Following existing examples 

The structure in the UK was cited by the IBIA as being particularly effective, with the British Gambling Commission allowing all types of betting while still offering stringent regulation. The IBIA said the British model was widely regarded as one of the best in the world encompassing elements such as a code of practice, exchange and receive information and prosecute when necessary.

So far, the New Zealand government have put forward four possible models for regulatory reform but the IBIA have condemned three of these. Maintaining the status quo, extending the remit for TAB and Lotto NZ and only permitting domestic operators were criticised by the IBIA as being fundamentally the same as the “existing monopoly”.

The consultation period has now ended and the New Zealand government is yet to announce its findings.