Renowned casino operator SkyCity is reportedly exploiting a gap in the law that will allow it to launch a European-based online casino in the course of 2019 whether a government vexed by the plan likes it or not. The company will also pay around “$40 million” in taxes for the yet-to-be-launched online gambling platform. Discussions pertaining to the casino operator’s offshoring plans began in August 2018 when Graeme Stephens, the SkyCity chief executive, outlined broad plans for online gaming.
No location was specified in the statement that was given by Colin Espiner, the casino’s spokesman, but he went on to mention locations that were not even being considered – these included Australia and New Zealand since online gambling is illegal in those countries. However, even though SkyCity will not be allowed to advertise its offshore-based online casino to residents of New Jersey, the company intends to put more effort into search engine optimization in a bid to attract more international gamblers.
As it stands, close to $400 million is leached offshore from Kiwi gamblers annually and some of the main beneficiaries are unregulated overseas online gambling operators. SkyCity’s intentions is therefore to reclaim a portion of the $180-million chunk that is channeled towards the many unregulated offshore casinos.
Prime Minister Expressed Disappointment
SkyCity’s move to offer online gambling via an offshore channel was not given the green light by the government and they have no intention of waiting for the country’s laws to change in order to offer online gambling services to Kiwi customers. Tracey Martin, the Internal Affairs Minister, has said that she is “disappointed they are forging ahead” with the plan. Even so, she has acknowledged that the move is proof that there are inadequate gaming laws and regulations in the country – in fact, it is a portrayal of just how much governments all over the world are struggling to tax and regulate their online gaming industries.
Despite differing opinion by government officials especially because the online site will be unregulated, the company has maintained that the move will definitely be great for the country as well as the government. SkyCity plans to “self-regulate” its activities based on the host responsibility measures which it has in place at its land-based casinos.
“We have also kept the regulator abreast of our plans to launch an offshore-based online casino site in the interim, which will be in full compliance with New Zealand law and will contain a range of best-practice host responsibility features,” Espiner added.
Now, while the gaming operator hopes that online gambling is legalized in New Jersey, there is a bit of concern concerning competition especially from the unregulated operators – these unregulated gaming companies usually put no restrictions on their platforms and this might appeal to a lot of Kiwi gamblers.
