Is there is any tax to pay on gambling winnings in New Zealand?

New Zealand Lotteries Act has directed all the game in New Zealand and three gaming operators have exclusive rights to organize games on the continent of NZ. New Zealand, monopoly system aim is to restrain the social and health-related harms caused by games like crime and set-ups, uncontrolled gambling, as well as guarantee the honesty of the games and the legal protection of the consumers.

Gambling act of 2003 is the law that regulates gambling in New Zealand and section 22 and 23 covers cases where no gambling license is required to operate. When reading the 22 section one can interpret running poker tournaments, housie or bingo, betting pools and other forms of gambling. This is legal and no license is required and section 22 defines class 2 gambling, which is common for organizations, certain business, and charities.

Now, you are going to see about the New Zealand laws of online gambling tax. Let’s see about them,

Laws and tax of New Zealand:

Gaming sectors taxation is regulated by the Lottery Tax Act (552/1922) and the New Zealand Income Tax Act (1535/1992) are winnings taxable in New Zealand. Based on the Income Tax Act, any income received by a taxpayer in the form of money or benefits of monetary constitute taxable income. It also restricts the taxability of lotteries and in the case of lotteries; the organizer is liable to pay a lottery tax that covers the necessary income tax.

According to the Lottery Tax Act, the gaming operators have to pay lottery pay to the government for the lotteries they organize. For the New Zealand government, lottery tax is a significant source of revenue and in 2009 it receives so many millions in total from all the gaming operators in the lottery tax.

This tax is challenged to the government’s expenditure without any specific allocations and it is expected that the government will raise the lottery tax rate again soon.

By the lottery act, the gaming profits are used for utilitarian purposes.

  • Ministry of education and culture decide the distribution of the profit from the game provided by Veikkaus.
  • Ministry of social affairs and health control the distribution of the profit from the game provided by RAY and it is based on the suggestion made by RAY.
  • Lotteries act regulate the distribution of the profit from the game provided by Fintoto and the Ministry of Agriculture and Forestry answer for the implementation.

The profit of the gaming is used for the funding of

  • Veikkaus: Art, sport, science and youth work.
  • RAY:Social and welfare organization, the rehabilitation of the war veterans and the helping of the less fortunate.
  • Fintoto:Equestrian sports and promoting of horse breeding.

Every online player, who is playing online gambling games, has to pay tax on gambling winnings in NZ. Finally, you have some knowledge about the tax to pay in gambling and their purposes in New Zealand. You can also search the website of NZ tax authority Inland Revenue for more information.

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