Gambling is a large industry in New Zealand. Each year, the people of New Zealand spend NZ$2 billion dollars at the lottery, on betting, at the casino, and playing online poker. Gambling in New Zealander is almost a national pastime, as up to 40% of the country participates in gambling in any form. But what are the rules when it comes to taxes and gambling? Are winning recognized as income and must they be report when tax season comes(Must Watch)? Below, we will break down the world of online gambling taxes in New Zealand.
Who creates the Gambling Laws?
When the 2003 Gambling Act was passed, it changed the way Kiwis accessed gambling venues and casinos. The agency that writes the law concerning gambling is the Department of Internal Affairs. Within the DIA, the Gambling Commission regulates and monitors all forms of gambling in New Zealand.
How are online gambling taxed
Since most online gambling sites that New Zealanders bet on are international, they have no power to tax them and there are no tariffs on gambling sites. There are taxes on casinos, but when it comes to online gambling also long as the sites do not advertise in New Zealand, they are free from the law.
Gambling Taxes for most people
According to the law, if a person wins money from any form of gambling, on or offline, they do not have to pay taxes on those winnings. Many people think that the reason there are no taxes on the winnings is that gambling money is already taxed by the casinos and betting houses before you even bet with it. This is not true. The real reason you are not taxed if you win money and you are an occasionally gambler is because the law recognizes it as a recreational activity. Also, If you have a different source of income and your winnings are not part of your income, then you even don’t have to report them on your taxes. The government does not require its people to report the amount they win at any given time, even when tax season comes up. That is interesting, as in the US, winnings over $5,000 must be reported.
Gambling taxes for professional gamblers
If you are a professional gambler and your winnings are the main source of your income, then you must report all the money you have used and all of the money you have won on your taxes. Doing this is far more complicated than if you had a regular job and could report regular earnings. To report your income the correct way, it may be necessary to seek the help of a financial advisor.
The tax laws for online gambling are easy and simple to follow. The government of New Zealand trusts its people and has no plans to ruin the gambling industry with taxes and too much red tape. Online gambling is easily accessible and taxes for gambling online are straightforward. So, head to New Zealand and logged yourself into an online poker site for a few hours of fun. And remember, never gambling away any money that you need!