Taxes on NZ Online Gambling
Each day, thousands of players from New Zealand engage in online gambling activities. Online casinos are not licensed or regulated in New Zealand.
However, this does not mean players do not have options. There are some super casino sites that are operating in other countries that will accept these players. Here, one can play for real money and have an experience just as they would at their favorite land-based casino venue.
Despite the lack of New Zealand casino sites, players continue to play online. There are no laws that restrict NZ players from signing up at offshore casino sites. Many of the popular choices are sites that are licensed in the UK, offering secure access to some of the best games online.
One thing players may be concerned about when playing online is taxes. It is important to understand any and all tax laws in New Zealand before playing real money games at a casino site. Here, we provide you with all the information you need to enjoy a safe and rewarding experience while abiding by New Zealand gambling laws.
By Amelia Smith - Last modified 07/01/2025 - Estimated reading time: 4 minutes.
Table of contents
Do Players Need to Pay Gambling Tax in New Zealand?
Here’s some great news for Kiwi gamblers: In most cases, you don’t have to pay gambling taxes on your winnings in New Zealand. Gambling is considered a recreational activity, and the government has structured taxes to fall on operators rather than individual players.
However, there is one exception. If you’re a professional poker player or treat gambling as a primary source of income, you are required to report your earnings and pay taxes on them. Inland Revenue uses criteria such as the frequency of your gambling, your level of organization, and whether you have a systematic approach to winning to determine if you are considered a professional gambler.
Even though this rule exists, enforcement is complex. Offshore poker websites and online casinos catering to New Zealanders are not obligated to report payouts to New Zealand authorities. This makes it nearly impossible for the government to track your winnings from such platforms unless you voluntarily report them.
In short, unless you’re gambling professionally, you can enjoy your winnings tax-free in New Zealand. Always consult a tax advisor if you’re unsure about your situation.
Gambling Taxes That Casinos in New Zealand Pay
While players don’t pay taxes on their winnings, physical casinos and other gambling operators are heavily taxed. These taxes are designed to contribute to the economy and help 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 net casino wins, payable quarterly or annually. |
| Problem Gambling Levy | 0.56% of net casino wins. |
| Gaming Machine Duty | 20% of profits from gaming machines. |
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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