The International Betting Integrity Association has strongly encouraged the government of New Zealand to adopt a new regulatory system. The recommendation aims to make it easier for both local and international operators able to get permits and to obtain access to an array of services and products.
International markets including, but not limited to Denmark, Spain, Sweden, and the United Kingdom have adopted similar licensing models with great success. In addition, the alliance suggested that administration steer clear of arduous tax frameworks that would likely discourage potential entrants into the market.
Fairness of fees in question
The IBIA also insisted on the importance of permit fees being proportionate and entirely rooted in the administrative expenditure of properly regulating the market. Countries utilizing systems similar to those recommended have done away with viewing these payments as a way to raise profit since this approach will simply deter operators from applying for licenses.
Gross Gambling Revenue Tax recommended
The IBIA indicated that taxation systems based on gross gaming revenue have displayed more efficacy than those based on turnover. They additionally recommend that a taxation rate of between 15% and 20% of the gross gambling revenue being imposed.
Diversity is key
The Alliance’s expectations include a menagerie of lawful online sports betting products and services for wagers and the events on which these could be placed. The Alliance’s integrity reports show that 90% of alerts arise from stakes placed on mainstream markets like final results rather than negative ones such as yellow cards.
Beyond satisfactory fiscal and regulatory structures being implemented for sports betting, market viability also depends on licensed operators’ ability to provide a wide range of wagering products, according to the IBIA. They explained that restrictions would drive consumers to seek out the services they are interested in from potentially illegal and unregulated channels.
The UK Gambling Commission is the ideal model as it covers a vast number of burgeoning betting markets. The Commission controls and permits all kinds of wagering various sports without any restrictions. It manages this while retaining close market oversight and working hand-in-hand with the operators it has licensed, supporting an evidence-based policy approach.