Did you know that around 80% of New Zealanders have gambled in one way or another in recent years? According to statistics published by the Department of Internal Affairs, locals wagered $2.38 billion on the four main types of gambling (lottery, sports, pokies and casino) between 2018 and 2019. That figure is up by $49 million on the previous year, showing that gaming in New Zealand is more popular than ever and continuing to rise.
This continued growth is partly down to the Gambling Act of 2003. By setting out clear rules for what is and isn’t legal, the government took control of the industry and, in turn, made it a lot safer for the consumer. Indeed, today, players must be at least 20 years old and no operator can offer any form of gambling without a licence. For operators and consumers alike, the regulation of gaming and betting has been a complete positive. However, there remains one slightly perplexing clause within the New Zealand gaming industry.
Overseas and Far Away
Under current laws, online gamers can only play on sites licensed overseas. Therefore, when someone wants to access a legal New Zealand casino, they need to find one regulated in jurisdictions such as the United Kingdom or Malta. Now, when you delve into the facts, that’s not such a bad thing. For example, a top-rated New Zealand casino such as LeoVegas is licensed by the UK Gambling Commission (UKGC). Regarded as the gold standard, the UKGC ensures LeoVegas stores player funds in a safe and secure way, the conditions attached to its $700 welcome bonus are fair, and much more which propels it to being one of the most trusted operators globally.
Such tight controls being in place is clearly a positive for Kiwis that want to play blackjack et al in a safe and secure way. However, what locals can’t do is play games at sites based in New Zealand just yet. Because of this law, there aren’t any online casinos located within the country, therefore no one is in any danger of doing anything that’s potentially illegal. What is interesting though is the opportunity the government is missing. By keeping online gaming as an offshore entity, the state is losing out on a hefty sum of money.
Home Advantage Would be Advantageous
“Dollar growth chart” (CC BY 2.0) by wuestenigel
If we take the UK as an example, online gaming now accounts for more than 33% of all gambling revenue. Between 2017 and 2018, remote bettinggenerated £5.6 billion/$10.5 billion. Looking at the online casino industry as a whole, revenue around the world topped US$45 billion/$71 billion in 2017 alone. We already know that the Department of Internal Affairs isn’t opposed to gambling. Therefore, it’s unclear why it’s not ready to oversee online operators within its own jurisdiction. Of course, there are probably political reasons why regulations haven’t been put in place. However, based on tax revenue alone, it seems like a win-win for everyone.
For players, the current dynamic is great because it means they can still play online. Indeed, if you look at Australia where online operators are banned, the landscape is very different. However, there are clearly benefits to having homegrown talent. The UK and the US have proved that in recent years. As a country, New Zealand needs to be bold and have confidence in its own abilities. Opening up the market and bringing online gaming home would be a step towards achieving that goal.
