Online Sports Betting

October 8, 2021

Sports Betting in New Zealand

With the passing of the Interactive Gambling Amendment Bill by New Zealand’s parliament in 2019, which made all forms of online gambling offered by local businesses banned, we felt that it was time to come back and look at the effect it has had and what options are available for New Zealander’s to bet online.

We know that New Zealand has a general prohibition on the provision of online gambling. This is highlighted in Section 9(2) of the Gambling Act of 2003; it states that “remote interactive gambling” (online gambling) is illegal unless it is authorised under the Act. The only providers authorised to offer online gambling products are the Lotteries Commission (Lotto NZ) and The New Zealand Racing Board (TAB).

This policy expressly excludes offshore operators as it states “The prohibition is on remote interactive gambling in New Zealand and therefore does not prohibit gambling conducted overseas. For example, it is not illegal for someone in New Zealand to participate in gambling over the Internet if that website is based overseas.”

This has created a really difficult situation for Kiwis that do want to gamble online as they are forced to play at offshore casinos that vary greatly in their ethics regarding player protection. We have also seen a major increase in online gambling over this period. Which is in complete contradiction to the objective of the act itself.

How to bet online in New Zealand

We have previously covered how to play at online casinos in New Zealand and will therefore focus on the sports betting aspect here. There are two options for New Zealanders when it comes to betting on sports online.

  1. Play at tab.co.nz which is strictly regulated and operated from within New Zealand.
  2. Play at an offshore Sportsbook.

The tab is well governed and offers strong player protection mechanisms to ensure that problem gamblers are protected and that AML rules are adhered to. The downside is that it operates as a monopoly within New Zealand and offers players worse odds and very few bonuses.

Offshore Sportsbooks and Casinos operate in a much more competitive environment and therefore offer players better odds and a continuous stream of bonuses and promotions. The downside is that there is very little recourse for players that play at an unethical establishment. This can be minimised by doing research online but the risk is still very real.

Should you bet online?

The answer to this question is not a simple yes or no. Your risk appetite, ability to keep your betting under control and need for accessibility are going to be the determining factors.

If you are someone that does not suffer from any gambling addiction and has a reasonably high tolerance for risk, then online sports betting at an offshore operator is a good option for you. If you are less risk tolerant then playing at Tab is a good option but if you are someone with an addictive personality then we would recommend avoiding any form of gambling.

If you do feel like you could suffer from a gambling problem, please visit PGF.nz to get the support you need to overcome it.

Sports Betting in New Zealand

The regulatory framework for sports betting in New Zealand

The Gambling (Gaming Levies and Other Matters) Amendment Bill (the Bill) has received its third reading at Parliament. If enacted, the Bill would amend the Gambling Act 2003 (the Act) to provide for the regulatory framework for sports betting in New Zealand. It is important for stakeholders to understand the implications of the Bill and how it could affect them.
Why would New Zealand restrict sports betting?
At its essence, the New Zealand government sees the new law as protecting consumers from overseas competitors that undercut or enter the market with undue advantages. However, there is also another view: that the government is actually protecting the incumbent operators (Betfair, William Hill, Unibet, etc.) who have extensive web presence in New Zealand and the U.S., but whose websites are restricted by U.S. law.

Over the past 5 years, there have been interesting lawsuits all over the world between offshore sportsbooks and New Zealand law. Virtually every country has regulations when it comes to overseas sports betting. The U.K. is perhaps the most pervasive censor among the major European Union countries. There are additional bans in Australia, South Korea, Japan, and Taiwan.

Would there be a games section in the bill?
In order for the New Zealand government to pass any new laws, the matter has to be presented to the cabinet, which then drafts the legislation and sends it to Parliament for approval. This means that, ultimately, it is up to the government to decide if and how much regulation is needed.

Conclusion

This may seem like a negative outlook on online sports betting but it is not. We ourselves are big supporters of the opening up of online betting in New Zealand but until regulations come in that protect customers, from both the inherent risks that come with gambling and the monopoly that currently exists with New Zealand, we advice Kiwi’s to be cautious of where they gamble online.

 

Embraced Gambling, Esports Betting, Football Betting, Online Sports Betting, Sports, Sports Betting, Sports Betting in New Zealand
March 12, 2020

The Extraordinary Growth of Online Sports Betting Industry

The snowballing of digitization has engendered mobile devices and the internet to transcend into dominant avenues for bettors trying to access the burgeoning global sports wagering market.

The casino industry bears testament to a novel phenomenon of a shift to computer or smartphone sports wagers that constitute 90% of every sports action occurring in a span of the next ten years, as reported by the East Coast Gaming Congress.

Yet another report by The Grand View Research states that the online sports betting market will escalate to an enormous $102.97 billion by 2025, accompanied by an 11.5% CAGR from 2019 to 2025. Therefore, the wave of the future is the avant-garde mobile sports betting.

Betting Industry

The Changing Pattern

Two years after a milestone decision by the United States Supreme Court has revolutionized the relationship between sports leagues and the gambling industry. The federal statute termed as Professional, and Amateur Sports Protection Act of 1992 had limited regulated sports betting to chiefly Nevada for the past 26 years before being deemed unconstitutional.

Since the lionized striking down of PASPA by the Supreme Court in May 2018, a colossal $20 billion has been wagered using US sportsbooks. Twelve states in the US have endorsed online sports betting, comprising Tennessee and Virginia, that confers the sole option of online betting. An approximate 84% of wagers were placed online out of the $4.6 billion flutters with New Jersey sportsbooks in 2019.

The significant players in the US gambling industry are also undergoing metamorphosis. The gargantuan shares in the New Jersey market have shifted from the grasp of traditional gambling companies like MGM Resorts and Caesars Entertainment to Fan Duel and DraftKings, who etched their prominence through fantasy sports, who are now established, bookmakers and online casino operators.

Online Sports Market in the UK

The world’s first sports betting exchange was actualised in the UK. Bettors place wagers in an online betting pool instead of a fixed-odds system. If the online casino is licensed under the UK Gambling Commission, then the gamblers are showered the benefit of legally wagering on sports events.

The most popular variants of sports for betting include football, tennis, and horse racing. Considering only football, the revenue generated amounts to €450 million, with sports betting revenue contributing half of the online casino revenue.

sports betting

 Online Sports Betting in the US

The various states that allow sports betting include Nevada, Mississippi, New Jersey, New Mexico, West Virginia, and Delaware. According to the American Gaming Association, Americans illegally wager $150 billion annually in sports betting. Another restriction placed in sports betting is the restriction of placing flutter on single games.

The law that banned sports betting nationwide, PASPA, was made unconstitutional in 2018, enabling individual states to carve their own rules regarding sports betting in both online and offline platforms. This landmark judgement ushered an added $9 billion by the legal sportsbooks in the US.

Online Sports Betting