Regulating NZ gambling industry: Pros & Cons

  (photo credit:  Amanda Wilson)
(photo credit: Amanda Wilson)

The gambling industry of New Zealand is a flourishing business with millions of people being a part of the gambling industry – both as players and service providers. With the availability of casinos in both offline and online formats, poker alone amounts to 35% of the gambling revenue indicating a high rise in players. 

It then became important for the federal government to impose certain rules and regulations that would aid the smooth functioning of the gambling industry. Looking back at history, one would notice how the gambling industry transformed over time, especially in the domain of player protection. 

Thus, with the execution of the Gambling Act 2003, strict control was exercised by the Gambling Commission to ensure security, while several gambling service providers were allowed to run their businesses making it the billion-dollar industry it is now. Nevertheless, there are certain shortcomings that accompany the benefits of the law. Let's explore them in detail.

  (credit:  Amanda Wilson)
(credit: Amanda Wilson)

Pros

  • A prominent feature of the gambling industry of New Zealand that evidently stands out is that of the protection of players. The rules and regulations ensure that all the functioning casinos are licensed and registered under the regulatory body of the New Zealand Gambling Commission. Licensed casinos are required to mandatorily ensure their players of guaranteed protection wherein all their personal and banking details are kept confidential and under high security. Thus, when it comes to gambling, be rest assured to be protected by proper safety measures. One can further view the official website of the Commission for detailed information. 
  • If taxes are a concern and you are a citizen of New Zealand, then every casino reviewed by NZ CasinoDeps is the right choice for you. As gambling is considered to be a hobby or a pastime, there are no taxes incurred by the players under the current law of the country. Unless you are a professional gambler with gambling being your main source of income, be rest assured that there is no way for the government or the commission to find out the profits and money that you have earned and generated, including the jackpots. 

Cons

  • As licensing became a mandate, there were not many casinos, especially the online ones that could avail of the approval to function. In such a situation, very few providers like that of Lotto and TAB gained a monopoly over the market, limiting the choices of the players to explore other casino sites. 
  • As choices are limited, New Zealanders often opt for international markets outside the jurisdiction of their country. To make sure this does not happen, the gambling black market of New Zealand started becoming more active wherein they provided innumerable options to the players to explore and continue gambling. In fact, gambling became an agency for people to depend upon when they face a crisis, eventually leading to addiction.
  • With the passing of the new law, certain activities related to gambling became prohibited. The Commission released certain terms and conditions that further regulated the gambling industry. Under this, gambling of Level 1 (a turnover greater than NZ$500 is not permitted, hosts cannot keep any profit) 2 (clubs or societies do not need licensing but the prize should fall between NZ$500 and NZ$5,000), 3 and 4 (gambling operators need to get a license and prizes over NZ$5,000+ are allowed, gambling machines are administered) were the only terms for gambling that was allowed.

    Anything beyond this was an offence and not permitted. Thus, such a rule limited players and companies to exercise freedom over gambling activities. 

ConclusionTo sum it all up, one can say that the current rules and regulators that control the gambling industry in New Zealand facilitate responsible gambling wherein they attempt to minimize any harm caused by gambling. In addition to this, it also makes sure that the growth of gambling is controlled through the authorization of only a few gambling terms, ensuring control. 

In this way, it limits opportunities for fraud and enhances the fairness of the games. Thus, through these provisions, the gambling community can benefit through a pastime. Thus, it is important for all the players and providers to abide by the safe side of the law in order to enjoy themselves while making money. 

This article was written in cooperation with Amanda Wilson