New Zealand has introduced a new 12% tax for offshore casinos in the country. The government already charges every business a 13% GST tax, meaning gambling sites will now pay 25% in taxes.
The government will only factor in income generated in New Zealand. It will also deduct losses and money paid out to gamblers as profits. The National Party estimates it could generate up to NZ$716 million annually by taxing offshore casinos and sportsbooks.
Will offshore casinos pay the new duty or flee New Zealand? Discover how the latest offshore gambling duty will affect iGaming businesses in the country.
New Duty to Become Effective from July
Gone are the days when online casinos could operate in emerging markets without paying taxes. Governments around the world are closing this loophole by introducing taxes for offshore companies.
NZ’s offshore gambling duty will start this July. Genuine casinos have no reason to evade taxes. Tax evasion usually leads to blacklisting, which can taint a company’s reputation and curb its expansion efforts. Besides, NZ’s tax is reasonable. Most countries have 20% to 30% taxes.
The UK charges a 21% duty to remote gambling companies. In the US, some states enforce a gambling tax of up to 50%: New York is a case in point. In countries targeting offshore casinos, non-compliant operators are blocked from providing their services.
New Zealand plans to use geo-fencing to protect its citizens from non-compliant gambling sites. It could also authorize local banks to suspend their operations with such companies.
New Tax Could Affect Sports Betting Odds and Bonuses
Taxes take away profits from businesses. In the gambling industry, operators compensate for revenues lost through taxation by adjusting their odds and promotions. Some operators can reduce odds slightly to balance their bottom line.
However, betting fans shouldn’t be worried. With the high competition in the NZ market, most companies will opt to absorb the lost revenue rather than risk losing their customers to competitors.
That being said, always compare odds when betting on sports through offshore operators. Some sites have incredibly attractive odds. Look for quality odds to maximize your profitability.
When it comes to bonuses, look for frequency and terms. A great sportsbook should give you free bets and other promotions regularly. The freebies should come with fair terms and conditions.
Maximizing Your Gambling Profits in NZ
New Zealand’s offshore gambling tax might not affect gamblers directly. However, they could have an effect on how sportsbooks and casinos provide their services. Below are tips to help you maximize your iGaming experience:
Shop Around for a Quality-Gambling Site
The new offshore gambling duty is good for the online gambling space in New Zealand. It will help bettors identify trustworthy gambling sites more easily. If you’re a casino fan, look for a trustworthy website among companies willing to pay their taxes in NZ.
Look for a site with your favourite features. If you’re into sports betting, prioritize your preferred sports and leagues. Choose a bookie with comprehensive rugby competitions if you like rugby. If you cheer boxing, ensure you can bet on major bouts.
Importantly, learn more about a site’s reputation. Some casinos have hundreds of slots and games. But they have a poor reputation. Select a site with a blend of everything you like
Create a Budget
Budgeting helps stay in control of your betting hobby. It allows you to balance your finances so that you don’t overspend money in betting. As a rule of thumb, bet with money you can afford to lose.
Create a budget for all your expenses before you think about budgeting for casino gaming. Set aside money for your savings, house bills, and investments. Only budget for casino gaming if you have a disposable income.
After you come up with a gaming budget, divide the amount into small amounts for staking on specific games. Let’s say you can afford to spend $100 on sports bets every month.
You need a plan to help you determine a safe amount to spend on each game. You could decide to bet on 10 games per month, with each game costing $10. Alternatively, you can opt for fewer games with higher bets.
Leverage Bonuses and Free Bets
Some betting sites in NZ may restructure their promotions to make up for the lost income from increased taxes. However, it is unlikely that gambling sites will stop giving out bonuses altogether.
Look out for welcome bonuses. Almost every casino has a welcome offer—both no-deposit and first-deposit bonuses. Also, consider loyalty rewards like cashback deals, reload bonuses, VIP points and big-event promotions.
While betting bonuses can boost your account balance, beware they have terms and conditions. Most bonuses have a time limit, meaning they can expire if you don’t use them. Also, bonuses have a play-through requirement and a maximum withdrawal limit.
Use bonuses to maximize your potential profits. For example, play high-volatility slots with free spins. This way, the casino takes a bigger risk.
Learn Betting Strategies and Systems
Betting strategies teach you how to win sports bets and casino games. You learn new techniques to lower the house edge in blackjack. You can also discover ways to lower your risk as a casino player.
Each casino game has a system that people use the most. For example, basic blackjack is highly popular among blackjack players. Martingale and Reverse Martingale are more popular among roulette players.
For clarity, the majority of systems don’t work. Or they require too much capital to make them ideal. However, general tips like betting big amounts or playing high-payout games have been proven to work.
In Conclusion
New Zealand is introducing a new tax for offshore gambling sites. The new duty might disrupt the online gambling space in the country primarily in how operators offer their services.
Some casinos and sportsbooks might restructure their bonuses and payout rates. However, don’t worry. The NZ iGaming industry is so competitive that most sites will actually improve their services with time. That being said, use the tips mentioned above to improve your profitability.
