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Taxes on Online Gambling in New Zealand

Taxes on Online Gambling in New Zealand

In recent times, many kiwis are increasingly turning towards online gambling for recreation day by day. If you are from New Zealand, it is essential for you to be aware of the various gambling laws before you get started. The purpose of this article is to provide you with an overview of the same.

Laws Around Gambling in New Zealand

Many countries have different laws and attitudes around gambling. Some of them are very black-and-white while others are a bit more complicated and sometimes even a little strange. Although betting on sports is fully legal and allowed in New Zealand, the laws around gambling are different.

Due to the Gambling Act of 2003, people in New Zealand are not allowed to gamble on websites that operate within the country. However, they are more than welcome to sign up with online casino websites whose servers are outside the country. Also, foreign online casino websites are prohibited from advertising in New Zealand.

Gambling

Whether Gambling Winnings are Taxed in New Zealand

So, what does this mean for the taxation around online gambling? It turns out that people in New Zealand are quite lucky. The law states that gamblers won’t be taxed for any amount of winnings. In fact, this applies to even sports betting on foreign websites.

However, funnily enough, a gambler has the option to report to the New Zealand Government on how much he has won and can pay taxes for the same. As one can expect, no gambler in New Zealand goes for this option. Hence, no one will be prosecuted for not having reported their winnings.

Whether Professional Poker Players are Taxed for Their Winnings

However, as always, when things sound too good to be true, there is always one or more exceptions in the picture. In this case, if a professional poker player from New Zealand wins real money from playing online poker on a foreign online casino website, he will be required to pay taxes for the winnings.

This is because professional poker players make their livelihood through online poker, also considering the fact that poker is primarily a game of skill. Hence, it will be considered to be their income and be taxed.

This exception doesn’t apply to players who gamble for recreation. The legislation in New Zealand treats casino games, whether online or offline, as essentially a fun hobby to indulge in. Hence, the winnings made are not considered as an income. It also makes no effort or even has any way to track how much players have won from the games.

Whether Online Casino Websites are Safe for Kiwis

If you’re still wondering whether it is safe for you, as a kiwi, to go on foreign websites and get started playing, then you need to know that this is quite a common concern. This is where you will have to exercise some caution and do your research. Make sure to go for licensed websites. The last thing you want to do is play on a website that hasn’t been authorized or verified by a third party.