The controversial situation between the New Zealand government and the Sky City company motivated IBIA to give NZ some advice. This advice could be helpful to the country which is struggling hard to regulate online gambling. It’s tryst with the Sky City is one of its many attempts to keep online gambling in check.

The International Betting Integrity Association (IBIA) advised  the New Zealand government to adopt a regulatory regime. This regime allows foreign and domestic operators to secure licenses for a diverse range of products.

New Zealand won’t be the first country to use a regulatory regime. The IBIA also cited examples of other countries like UK, Denmark, Sweden and Spain who benefit from a regulatory regime.

The IBIA also warned the government, to cut some slack with the taxes. It said that if government tries to raise the revenue through high taxes then people might shy away from getting the license.

In IBIA’s words “It is also important that, as with the countries employing a licensing system listed above, any license fees are proportionate and wholly based on the necessary administrative costs of proper market regulation”. No unnecessary taxes should be added to the cost of license. In that case it would merely be extortion.

IBIA also mentioned that if the taxes are within range of 15-20% then the gaming revenue generation  rate is higher.

New Zealand  has Lotto NZ and Totalisor Agency Board as the only online gambling operators. But it is now consulting the public to expand the online gambling products range.