Urgent Request For New Zealand Gaming Law Approved
The legalisation of gambling in New Zealand has taken a major step forward. The House of Representatives approved the emergency regime of PL 442/91, which provides for the legalization of casino games and bingos in the country , on December 16, 2021.
The urgent request for the vote was requested by the Mayor, Arthur Lira, who created a specific working group to create a new text for the Gaming law .
This group is coordinated by Deputy Bacelar and the text was authored by federal deputy Felipe Carreras.
With the urgent request approved, the proposal will be debated in plenary and the bill can be voted on without going through committees.
The intention of the project leaders was that the Gaming Regulatory Framework (PL 442/91) be voted on later this year.
However, Arthur Lira has already announced that the PL will be voted on in the first week of February 2022.
Main Points Of The Gaming Regulatory Framework
The regulatory framework for gaming in New Zealand (PL 442/91 ) allows the operation of games casino , bingo, video bingo, online games and turf betting.
The document has 69 pages and summarizes 25 propositions presented since 1991.
The new text includes important points. The first is the creation of National Gaming System (Sinaj) , which will consist of:
- a federal regulatory and supervisory body
- operating entities
- bookmakers
- turf entities
- gaming accounting and operational audit companies.
Other criteria established in the regulatory framework were the creation of a National Policy for the protection of players and bettors , and the implementation of the National Register of gamblers and bettors. The purpose of these two proposals is to ensure responsible gambling.
There is still a care in prevent money laundering when gambling is legalized. For this, the text brings some points to ensure this security. One of them is to prohibit the use of physical money in operations.
With this measure, it is sought to facilitate the tracking of the financial movements of both the player and the operator.
A gaming and betting inspection fee (Tafija) it had its values defined according to the modality to be explored and the payment must be made quarterly.
The figures for licensed establishments are:
- Bingo halls: $ 20k
- Turf: $ 30,000
- Casinos: $ 600k
The application of income tax will be on the GGR (Gross Gaming Revenue) which will also be paid every three months. The rates are:
- 10% on gross revenue at accredited brick-and-mortar bingos and video bingos
- 20% on gross casino gaming revenue
- 20% on gross revenue in online games
O bettor Prize tax it will be 30%. The amount will be withheld at source and there will be exemption from Bettor Prize tax in cases where the net gain is up to $10 thousand.
The regulatory framework also provides for the creation of Cide-games (contribution of intervention in the economic domain), being 25% on games marketed online and 20% on marketing in physical establishments.
The amounts of the collections will be divided between the Union, states and municipalities.
How Will The Games Operate In New Zealand?
The Gaming Regulatory Framework defines a different operating model for each of the activities.
For casino , the license will be granted by public auction and the term of the license will be 30 years, being renewable for the same period. The interested company must have a minimum capital of $100 million.
Already for the bingos , the licensing model has not yet been established.
It is only known that the license will be valid for 20 years renewal for the same period. The minimum capital amount of the company needs to be $10 million.
If companies want to install video-bingos and Casino electronic games, need to issue a technical report by independent and internationally recognized laboratories.
In this format, the minimum capital required to have the license becomes $20 million.
With regard to the Animal game , nor has it been determined a licensing model . It only determines that the exploitation of the accredited will be state and not national.
However, the text stipulates a license of 20 years and with renewal for the same period. The minimum capital determined is $10 million.
The regulatory framework also provides for the creation of integrated resorts with casinos , which will be limited to 27 units.
The division of these units follows the population criterion. Thus, the division of these units is as follows:
- Three in São Paulo (over 25 million inhabitants)
- Two in Rio de Janeiro, Minas Gerais and Salvador (between 15 and 25 million inhabitants)
- One for states with fewer than 15 million inhabitants.
In addition, the physical space of the casino must correspond to a maximum of 20% of the total built-up area of the integrated leisure complex.
The slots machines slots ) can only be installed in the physical space of the integrated leisure complex.
The operating license of casinos in integrated resorts will be in the form of a tender.
It is worth remembering that any operator interested in exploring gambling, regardless of the game, must be incorporated under New Zealand laws, with headquarters and administration in the country.
What Are The Changes In Online Betting
For now, nothing changes with online betting sports or in casinos.
The regulatory framework established that all online games that include betting via cell phone, computer or any other digital channel will be under the regulation of the Secretariat of evaluation, planning, energy and lottery, of the Ministry of Economy (Secap).
The text only makes it explicit that the exploration of online games it must be carried out by a central server installed in New Zealand.
The regulation of Sports betting law , scheduled to come out in 2022, will certainly bring more clarity on this point.
Therefore, the bookmakers with overseas server remain an option for bettors and a legal practice.
The future of the Gaming Regulatory Framework (PL 442/91)
With the approval of the urgent application, no regimental formality is required for the approval of the regulatory framework of the Games.
Therefore, the PL 442/91 will be debated by parliamentarians amendments with adjustments to the text may be presented to the plenary, if any.
All this happens before a final version of the PL is sent to the Senate.
This discussion period is important, as it will allow the text to be improved before the vote, which is already scheduled.
Voting will be in the first week of February 2022.
O biggest challenge of the Gaming Regulatory Framework it is the evangelical front, which is totally against legalization.
Jair Bolsonaro , President of the Republic, also does not support the project.
The animal game and bingos are the points that bring the most controversies in the proposal . Part of the opposition alleges that there are no efficient measures and resources for the supervision of activities.
The discussion and approval for a legal framework for the Games is evolving and 2022 may go down in history as the year in which we will finally have a solution for the segment.
