Taxes on NZ Online Gambling
Every day, thousands of players from New Zealand dive into online gambling activities, even though online casinos are not licensed or regulated within the country.
That doesn’t mean Kiwi players are out of options. Many reputable offshore casino sites accept New Zealand players, offering real money games and experiences comparable to those at land-based venues. These platforms are often licensed in regions like the UK, ensuring secure and fair play.
Although there are no New Zealand-licensed casino sites, it is legal for Kiwis to join offshore platforms. Understanding the tax laws surrounding gambling is crucial before engaging in real money games. Here, we provide comprehensive insights to help you gamble safely and responsibly while staying compliant with New Zealand regulations.
By Amelia Smith - Last modified 22/01/2025 - Estimated reading time: 3 minutes.
Table of contents
Do Players Need to Pay Gambling Tax in New Zealand?
Good news for Kiwi gamblers: as a recreational player, you don't have to pay taxes on your gambling winnings in New Zealand. The government taxes gambling operators, not individual players.
However, if gambling is your primary income or you're a professional player, you must report your earnings and pay taxes. Inland Revenue assesses factors like the frequency and organization of your gambling activities to determine your status.
Enforcement can be challenging. Offshore online casinos aren't required to report payouts to New Zealand authorities, making it difficult for the government to track your winnings unless you self-report.
In summary, unless you're gambling professionally, you can enjoy your winnings tax-free. If unsure, consult a tax advisor.
Gambling Taxes That Casinos in New Zealand Pay
While players don't pay taxes on their winnings, gambling operators in New Zealand are subject to several taxes designed to contribute to the economy and address problem gambling. Here's a breakdown:
Casino Gambling Taxes in New Zealand
| Type of Tax | How it is Taxed |
|---|---|
| Casino Duty | 4% of the casino's gross gaming revenue, payable quarterly or annually. |
| Problem Gambling Levy | 0.56% of the casino's gross gaming revenue. |
| Gaming Machine Duty | 20% of gaming machine profits. |
Taxes on Gaming Machines in Hotels and Clubs
| Type of Tax | How it is Taxed |
|---|---|
| Gaming Machine Duty | 20% of profits. |
| Problem Gambling Levy | 0.78% of profits. |
Lotteries and Wagering
Lottery operators pay a 5.5% duty on ticket values, along with a 0.43% Problem Gambling Levy. Meanwhile, the Racing Industry pays a Problem Gambling Levy of 0.52% of betting profits.
Online Gambling Officially Illegal in New Zealand
Did you know that online gambling is technically illegal in New Zealand? According to the Gambling Act, all forms of remote interactive gambling are banned unless operated by the New Zealand Racing Board or Lotteries Commission.
That said, Kiwis can legally play at offshore online casinos without repercussions. Many of these platforms cater specifically to New Zealand players, offering popular games like pokies and table games. Just ensure the casino is licensed and has fair payout practices.
Tax on Gambling in New Zealand - Conclusion
For the average New Zealand gambler, the tax system is straightforward and favorable. You can enjoy your winnings without worrying about taxes. However, professional players or those treating gambling as a source of income should report their earnings and seek professional advice.
Whether you prefer land-based casinos or offshore platforms, always gamble responsibly and understand your tax obligations if your gambling becomes more than a hobby.
Frequently Asked Questions About Tax on (Online) Gambling in NZ
Why don’t players have to pay taxes on their gambling winnings in New Zealand?
Gambling is considered a recreational activity, not a taxable source of income, for most players. Additionally, operators already pay taxes, preventing double taxation.
Are lottery wins taxed in New Zealand?
No, lottery winnings are entirely tax-free. Whether you play online or offline, you keep all your winnings.
Do I need to declare casino winnings on my tax form?
No, unless gambling is your primary income or you’re receiving government benefits. Professional players should consult a tax advisor.
Author and fact checker: Amelia Smith
Expertise: Casino Games, Croupier and related topics.
Experience: Writing since 2019 with over 15 years in the gambling industry, Amelia has spoken at multiple events.
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