NZ says revenue from online gambling significantly lower than anticipated

The government’s intention to boost internet gambling revenue has been estimated by the New Zealand Inland Income Department; these figures differ significantly from the National Party’s pre-election projections.

National’s projected annual revenue of around NZ$176 million from closing tax loopholes in online gambling contrasts sharply with estimates from the Inland Revenue Department. The IRD expects to receive NZ$35 million in revenue per year initially, rising to around NZ$155 million over the course of four years.

This substantial divergence in revenue expectations between National’s pre-election forecasts and the IRD’s assessments—more than NZ$500 million over the course of the projection period—highlights the discrepancy. While acknowledging the lower results, Finance Minister Nicola Willis said that the government is thinking about implementing additional online gambling regulations. This framework has the ability to close the revenue difference between National’s estimates and IRD calculations, potentially earning NZ$118.6 million in the anticipated term.

In order to raise more money for the government, the National Party ran an aggressive campaign centered on tightening regulations around offshore online gambling and bringing it into line with land-based gaming. Authorities preferred a suggested fixed fee of 12% for the proposed measures, which included forcing online casino companies to register and disclose profits for tax reasons and applying IP ‘geoblocking’ for non-compliant services.

Willis expressed confidence in the idea despite the negative decline in revenue projections, highlighting the need of addressing the unregulated aspect of online gambling. Even if the revenue produced was less than first anticipated, she maintained that establishing a regulatory framework was essential.

Original story by: Asia Gaming Brief