New Zealand Reviews Online Offshore Betting, Considers Restrictions On Practice

The New Zealand government is considering the restriction of online overseas betting. It believes the offshore online betting of New Zealanders is depriving the local racing industry of income.

New Zealand's Racing Minister Nathan Guy has announced a review of overseas online betting with former National MP Chris Tremain heading the working group. Guy said the Totalisator Agency Board, or TAB, held the monopoly on racing and sports betting under an arrangement that required the Racing Board to distribute profits back to the racing industry, reports the New Zealand Herald.

The profits were reportedly being undercut due to the increasing use of online betting outside of the country especially in Australia. The minister explained that offshore organisations make money in New Zealand’s racing and sports without paying their fair share of taxes to the government and giving contributions to the industry.

The terms of reference for the review were not clear in the extent to which New Zealanders use offshore online betting. The review noted that the racing industry was concerned about the practice undermining opportunities for investment and employment in the industry.

The review would also look into the matter of overseas bookmakers not subjected to the same rules on responsible gambling as the TAB. This could worsen the problem and promote underage gambling. “Finally, it deprives the government of potential revenue through taxation,” said the racing minister.

The working group is expected to report back with recommendations in September. Guy admitted that online overseas betting is a “challenging issue” as the review would be the government’s first real attempt to explore the extent of the problem. He expressed hopes that the review will also lead to solutions.

Newstalk ZB reports that University of Liverpool’s sports finance professor Tom Cannon believes everything comes down to competition. He said offshore operators usually offer better odds since they don’t have to pay taxes.

The New Zealand Racing Board remains hopeful that the monitoring of offshore betting will even out the playing field. Racing Board Chief Glenda Hughes said there are currently no restrictions or controls for overseas betting.

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