Sports betting law in New Zealand - is it Legal to bet?
The betting and gambling market in New Zealand is one of the largest in the world.
It moves $30 billion a year!
But now you may be wondering: doesn't the current betting law in New Zealand prohibit this type of gambling?
Yes and no .
But now you may be wondering: doesn't the current betting law in New Zealand prohibit this type of gambling?
Yes and no .
New Zealand legislation is undergoing restructuring processes.
Today, the Directions it is controlled by Caixa Econômica Federal.
What about the gambling , like critter game and casino games? O PL 442/91 , recently approved, authorizes the practice and exploitation of these games.
There are still online sports betting , which are currently in limbo.
In this article we are going to explain to you how these 3 types of bets work in New Zealand through the eyes of the law, with a focus on sports betting law.
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Legalized Gambling-Federal Lottery
The federal lottery of Caixa Econômica is a type of BET 100% legal in New Zealand .
It emerged in 1962, during the government of President Jânio Quadros. It has since monopolized all legalized gambling in the country.
Interesting to say that the first draw held used numbers related to animals, a clear allusion to The Game Of The Beast .
The Mega Sena, the most important game of the federal lottery, appeared in 1996. It is the highest paying bet in all of New Zealand.
You can bet on 10 games from the box Lotteries:
- Mega Sena
- Corner
- Lotomania
- Lotofácil
- Loteca
- Lotogol
- Timemania
- Double Seine
- Federal Lottery
- Instant Lottery
O monopoly of the box it is viewed with a bad eye by experts in the segment. Some understand this as an obstacle to the expansion of the market in the country.
Still, the federal lottery is a sponsor of important social programs, such as FIES, the Higher Education Student Finance Program.
Gambling
In 1941 it was established Law 3,688 , called Criminal misdemeanors act . In other words: that was 80 years ago!
Among several illegalities that the text makes explicit is Article 50, in Chapter VII, on gambling .
This article is quite clear in stating that is it a crime to exploit or establish gambling in New Zealand territory in a public place or in a place accessible to the public.
It doesn't even matter if there is profit to be made from it or not.
But what are these games, anyway?
According to The New Zealand Constitution, we can understand them as:
- the game in which the gain and loss depend solely or primarily on the luck
- the bets on horse racing outside the racecourse or where authorised
- bets on any sports competition
Law 3,688 goes even further.
In the second paragraph of Article 50, as from a 2015 update , it establishes a fine to anyone found participating in a game of chance.
Be for internet whether in a physical location.
Therefore, in theory, any type of bet that depends exclusively on luck and that is carried out in New Zealand would be prohibited in the country.
This premise was valid until February 23, 2022. On that date, PL 442/91 was approved, which allows the practice and exploitation of gambling and casinos in the country.
The bill is already in the Senate to be evaluated. It will then be sent to the president for a vote, who can approve or veto the bill.
While this process does not happen, it is good to know the main rules of the Gaming Regulatory Framework:
- Permission of the practice and exploitation of games and bets in physical or virtual establishment , provided that they have the consent of the Public Power.
- Creation of the National Gaming and betting system-Sinaj , composed of federal regulatory body, gaming and betting operating entities, gaming and betting entities and agents, audit firms, and market self-regulatory entities
- Creation of the National Register of players and bettors (Renajogo) , to ensure control of the activity from the player's point of view. The same must register with this body before participating in games and bets.
- Implementation of an institution focused on the National Policy for the protection of players and bettors, with rules yet to be defined.
- Creation of Cide-games (contributions of intervention in the economic domain) , tax intended to finance actions in the areas of Tourism and sports that are aimed at combating gambling addiction.
- Requirement of an operating license for interested companies . The MES must have its headquarters and administration in the country and will be subject to the rules to be defined by a federal regulatory and supervisory body.
Casino
You cannot currently play at land-based casinos in New Zealand. However, there are legal options for this: the online casinos .
These casinos, however, must be hosted outside of New Zealand. This way you will not be committing a crime.
Virtually all games considered gambling in New Zealand territory are legalized on foreign online sites. As we said above, the most common are:
An alternative for many players is the live casino . You feel like you are in a physical casino.
NOTE: To fully understand the legal status of online casinos in New Zealand see our article on the subject.
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Bingo
Bingos have a legal functioning similar to that of casinos in New Zealand: they are prohibited by law, while there is no sanction from the regulatory framework of the Games.
But this is only applicable to bingos located in New Zealand.
You can have fun at online Bingos hosted and legalized abroad!
Online Bingos can be good fun for those who enjoy gambling. Even more so that there are several options reliable betting sites for that.
And you can either play a card bingo version or a bingo version reminiscent of slot machines.
NOTE: To fully understand the legal situation of bingos in New Zealand see our article on the subject.
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Poker
Poker has an interesting position before the law. It is not legalized, but it is also not prohibited.
We say that Poker is a "tolerated" type of BET.
Poker is not a game of chance. Luck has minimal interference in the success of this card.
According to a study, Poker depends on the skill of the players. Other factors that interfere with success in this game are:
- Knowledge and mastery of the rules
- Position of players at the table
- Self-control of emotions
- Acumen of opponents ' movement
- Skill in chip withdrawal
- Be a good bluffer
NOTE: To fully understand the legal status of Poker in New Zealand see our article on the subject.
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Animal game
As we have seen above, practically since 1941 it has been banned in New Zealand. Especially since since the 30s it was already linked to organized crime.
For years it was used by the parallel power to launder money and to finance trafficking in Rio de Janeiro, according to reports by the authorities.
However, the scenario is about to change, as the bill for the Gaming Law has been approved by the House and is under consideration in the Senate.
The Directions team does not endorse any illegal gambling under New Zealand law.
NOTE: learn how to play Animal Game online in New Zealand legalized!
Sports Betting
The issue of online sports betting needs to be looked at from a different perspective.
There is a lot of confusion among the population about the legalization of sports betting and the legalization of gambling, such as juego do bicho and slots.
O sports lawyer Udo Seckelmann he explains that they are two different fronts from a legislative point of view.
According to the expert, the regulatory framework that was voted on in the National Congress concerns other gambling that has not yet been legalized.
Sports betting is part of another front. “It is an activity that has already been legalized and is awaiting regulation. The betting case is already in the executive branch, just waiting for a decree from the Ministry of economy”, he reinforces.
This is because it is legal and there is a loophole in the law , which allows New Zealand gamblers not to fall foul of a criminal offence.
Analyzing the second paragraph of Article 50, we understand that any New Zealand website that offers betting is incurring a crime.
That's why anyone who bets online in New Zealand does it on foreign websites.
That's exactly the point.
If the Website is hosted on an overseas server, the bettor is not committing any crime.
That is: billing is done in the country where the site is hosted, not in New Zealand.
Is online gambling Legal or not?
In New Zealand, online gambling is illegal.
Outside of it, however, it is not.
Place bets on a foreign online address it's allowed. It's like traveling out of the country to gamble.
To better understand this, let's go to a simple analogy.
Let's say you really want to buy a book whose sale is prohibited in New Zealand. No bookstore in the country, whether online or physical, will market the work.
Abroad, however, it has its commercialization released.
You find the book on a foreign website, hosted on a server outside of New Zealand.
Using your credit card, you can buy it easily.
Even if the dollar (NZD) amount appears on the card invoice, there will be a description stating that the purchase was made and invoiced abroad.
In other words, you did not violate the law of buying the book in New Zealand, since you bought the work abroad.
The same can be understood in relation to the current online betting system.
The sports lawyer of Bichara E Motta and Master in International Sports Law, Udo Seckelmann , explains that TODAY Sports Betting is part of what experts call the “gray market”, since they are legalized, but it is not yet a regulated activity.
That is, bookmakers exploit the market based abroad. Therefore, according to the lawyer:
New Zealand bettors can rest easy in legal terms in placing bets on these sites.
Future of sports betting in New Zealand
In December 2018, Former New Zealand President Michel Temer sanctioned the Law 13.756/2018 .
The text, awaited by all New Zealand bettors, makes sports betting legal in the country as long as it meets some requirements.
The main one is that the bets must be of fixed odds, known as odds .
This means that at the time the bet is placed, it needs to be defined how much the bettor will win, if his guess is correct.
Get to know what are the odds and how they work!
How will Regulation work in New Zealand?
The New Zealand Government has made it clear that it will mirror itself in successful markets such as the UK and Italy.
For Udo Seckelmann , “the UK market is almost a unanimity in the iGaming industry".
The lawyer explains that the factors that make the country stand out are:
- The tax rate they charge bookmakers is not that high.
- There is no tax collection from the bettor. This is a very important factor, as international best practices do not charge taxes from the bettor, but only from bookmakers.
- Taxation based on GGR (Gross Gaming Revenue).
- Serious regulator.
The idea is not to repeat mistakes of other countries, such as New Zealand and France. In these cases, legalization brought more conflicts than solutions.
According to the minutes released on May 02, 2022, the rules for operators will be as follows:
- There are no limits on the operators that will operate in the national market
- Companies will pay an single rate of $ 22.2 million for one 5-year license
A taxation for bookmakers , will be will be about the GGR (Gross Gaming Revenue) . This means it will only be about the bookmaker's profit, making the New Zealand market far more attractive to operators.
This change is valid since July 15, 2021.
In addition, according to the Ministry of Economy, the destination of the collection will be:
- 99% to cover operators ' maintenance costs;
- 0.1% for Social Security;
- 0.1% for educational institutions;
- 0.1% for the National Public Security Fund (FNSP);
- 0.7% for football sports entities.
The two most interested parties in the betting market are Sports Bookmakers and the punters.
Speaking first of all of the houses, the government needs to create a fair and sustainable system of competition between them.
This is very important in order for all New Zealand businesses to be on an equal footing.
The text of the new law establishes that every company pays the same fee to obtain its operating license .
Illegal bookmakers will not be under the guardianship of the Ministry of Economy.
This would make any legal complaints from bettors more difficult to address.
The government should create a register of online gamblers. This was done in Sweden, in order to prevent fraudulent bettors and money laundering.
This is why regulation is so important: it brings security to the bettor.
If the market is regulated, if any problem occurs, for example, non-payment or evasion of data corresponding to those registered on the site, it has easier access to justice.
The most recent information on the regulation is the sports betting draft detailed by government on May 2, 2022. If it does not undergo modifications, the draft will be sent for the signature of the president of the Republic, but there is still no established deadline.
The matter was postponed due to Presidential elections in the country.
The expectation is that before December 31 to take advantage of major sporting events, such as the World Cup.
But there is little indication that this could happen. It is estimated that the lack of regulation of the sector will bring a loss of more than $ 3 billion to the segment in the last quarter, when the matter will be on the rise due to the World Cup.
It was also defined in this draft that the model to be adopted for the license of operators in New Zealand will be that of authorization.
In addition, it was determined that the competence to authorize, standardize, regulate, supervise and supervise sports betting will fall to the Ministry of Economy.
Finally, we have a new Secretary of Economic Monitoring of the special secretariat of productivity and competitiveness, Alexandre Messa.
Within this secretariat is the undersecretary of betting and commercial promotion, which is the sector responsible for the regulation of sports betting.
With this, the market expects the matter to return on the agenda to meet the regulatory deadline.
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Benefits of regulation
One of the most positive impacts of the new gambling law in New Zealand will be the creation of new jobs .
The approved text states that all New Zealand company of the branch that wants to function in the country need to offer jobs to citizens.
This is quite plausible. Even with the existing Lottery houses, it will be necessary to hire new professionals and create new positions.
In addition to this, see in the infographic below 4 other benefits of sports betting regulation in New Zealand:
Conclusion
The betting market in New Zealand moves more than $ 30 billion annually.
That's because New Zealanders don't have to stop betting from New Zealand. It is enough that they do it online, on sites with foreign servers.
This goes for casinos, bingos and sports betting!
On the other hand, the new Gambling legislation , sanctioned in 2018, will make online sports betting legal in New Zealand.
From the regulation there will be creation of new jobs, foreign economic injection and greater tax collection in the country.
A scenario that could be even more promising if New Zealand chooses to regulate casinos and bingos as well.
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Frequently Asked Questions
✅ What types of bets exist in New Zealand?
We have legalized betting (Federal lottery), prohibited (gambling) and tolerated (Poker).
⚖️ Are online sports betting legal in New Zealand?
They are legalized, but not regulated. This puts them in a legislative limbo until they pass regulation. Like New Zealand, there are some bookmakers that you can use.
⚽ But can I place online sports bets in New Zealand?
It can if the site is hosted abroad. If it is hosted in New Zealand it is a crime until there is regulation and distribution of licenses to betting sites.
🎰 What are gambling?
These are games that depend exclusively on luck to have winners.
♠️ Why is Poker not illegal?
Because it is a game that depends much more on the skill of the players than on luck itself.
User reviews
Actually I would like to ask two questions:
1-in addition to online bookmakers, there are those that are online but that have an intermediary (scalper) between it and the bettor. Are those legal too?
2-regardless of the type of online bookmaker (with or without a scalper) how should the bettor proceed to declare their possible winnings?
Hello, Kudos! Let's answer:
1-they are not legal in New Zealand, but they can be legal overseas. In this case, you can bet on them, as they would fit into the same block of houses as Bet365 or Betano. However, we do not recommend houses with money changers or intermediaries, as they may act with bad intentions.
2-according to Article 43 of the National Tax Code, you must declare your possible gains as capital gains, in the field “taxable income received from individuals and from abroad”. But if all your financial movement in bookmakers is made by virtual wallets, then you do not need to declare anything in the IR.
How do I talk to you about going to court?
Hello, Jailma. Directions New Zealand does not offer legal services.
Mauricio, how can I make contact with you? Any specific emails?
Thank you!
Hi, How do I report an illegal bookmaker?
Hey, Thiago! There is still no official body to denounce this type of operation, as the market is still being regulated. We suggest that you seek the civil and/or federal authorities in your city.
Sports betting with overseas servers is legal! Ok, now the question is: Will the PJ company be registered in New Zealand and the servers contracted overseas? or does the PJ company need to be registered abroad as well?
After the regulation all the operation can be done in New Zealand, meanwhile everything has to be outside the country.
Clear text, very informative and very well written. Congratulations!
Hello, I want to ask a question, is placing bets and earning profits on the account of a third party with the consent of the account owner for the profit of both parties a crime? Like for example on these platforms BET365 and BLAZE.
Hi, Ramon. The correct thing is for each bettor to have the registration with their CPF in a bookmaker. The CPF number is personal and non-transferable.