Sports betting integrity body ESSA has ordered New Zealand to initiate a licensing policy for offshore operators together with its proposed point of consumption tax.
Khalid Ali, the Secretary General of ESSA commented that it was difficult to see how race field fees or a point of consumption tax, proposed in a new bill from Deputy Prime Minister Winston Peters, could be enforced without bringing operators onshore by offering licenses.
Ali went on to say that the lack of a proper regulatory structure could harm efforts to uphold sporting integrity.
Peter’s bill is part of an endeavor to restore the horse racing industry in New Zealand, with the Minister recently saying that the sector was ‘in a state of serious decline’.
The point of consumption tax, and fees for using racing and sporting data from New Zealand, are drawn up to enhance industry finances in the short term.
Ali also said that a market opening, as they are seeing in other parts of the world such as Sweden, the US and the Netherlands, would deliver a far more favorable regulatory and fiscal framework.
He added that an increased risk to the integrity of the racing and sporting sectors was a key issue influencing the policy and legislative position when this issue was previously put before Parliament. He also said that as they explained then, the maintenance of a monopoly provider for betting will not address these concerns and will, in fact serve to weaken the integrity position of New Zealand’s racing and sporting events.