Racing Minister Nathan Guy announces probe into online offshore gambling
Racing Minister Nathan Guy has signalled that the Government may crack down on online gambling, announcing a working group to look into the “problem”.
The TAB, operated by the New Zealand Racing Board (NZRB), holds a monopoly on all racing and sports betting within New Zealand, but the growth of online commerce and mobile technology has allowed online betting to be much more accessible to users around the world.
Often based in low tax environments, and operating at a greater scale to the TAB, overseas agencies attract punters because they can offer better odds than those available here.
However, Guy said while the TAB contributed money back into the racing industry and other sports organisations, paid tax, and funded problem gambling measures, offshore companies contributed little.
“When New Zealanders place their sports and racing bets with overseas betting operators online, they operate outside of our regulatory framework,” Guy said in a statement.
“This means that offshore organisations make money on New Zealand racing and sports without paying their fair share of tax, or making contributions back to the racing industry or sporting organisations that make the betting possible in the first place.”
Guy named former Internal Affairs Minister Chris Tremain, himself a former racehorse owner, to head the new offshore racing and sports betting working group.
The new working group was the first attempt “to clarify the extent of the problem” as well as giving “practical options” for addressing the issue, Guy said.
“Given the global trend towards online betting, this issue will continue to grow and needs to be addressed now,” he said.
Other members of the group include John Allen, the NZRB chief executive who previously headed the Ministry of Foreign Affairs and Trade, the chairman of Sport New Zealand, Sir Paul Collins, the NZRB’s thoroughbred representative, Greg McCarthy, and two officials from the Department of Internal Affairs.
The NZRB welcomed the announcement. It estimated that Kiwis bet “up to” $300 million a year with overseas agencies “that do not contribute to those industries, or are subject to the same responsibilities as NZRB”.
“This is a positive step towards what has been a long-standing issue for New Zealand’s racing industry and we look forward to seeing progress made on combatting the increasing impact of off-shore betting in New Zealand,” chairwoman Glenda Hughes said in a statement.
“Our industry works hard to provide quality racing and sport that is enjoyed around the world, but there is a problem when it does not get a fair return on its investment as a result of betting taking place offshore,” she added.
“International corporate bookmakers are increasingly taking bets on our domestic product without any benefit flowing back into the New Zealand racing industry, and without being subject to the same fees and taxes as NZRB. We would like to see a level playing field, where all betting placed on New Zealand racing results in an appropriate contribution back to support the development and growth of this industry.”
NZRB said in 2013-14 it contributed $134.1 million to horse and greyhound racing, and another $5m to other national sporting organisations.
