Online gambling is one of the fastest growing industries in the world as it offers convenience, variety, and a hoard of other benefits that appeal to players across the globe. New Zealand is one of the newer regions that has started tapping into this market. And with resources like gambleonline.co.nz walking people through how gambling sites work, more people have felt comfortable trying their hand at one or two games. But instead of opening up the market to all gambling operators, New Zealand authorities have taken an alternative route that has given this region an edge. We look at its approaches and why they might soon be the standard in other countries.
What’s the Edge?
The increased availability of online gambling sites has put pressure on most authorities to legalize online gambling. But while this has worked in some regions, some are now bearing the brunt of opening up their market too soon. Having seen just how badly things can go, New Zealand used a conservative approach by emphasizing the following aspects:
1. Strict Regulations
New Zealand authorities are well aware that online gambling comes with numerous benefits, including additional revenue, which can go a long way in building more public infrastructure and creating job opportunities. However, they also know that gambling operations can have a negative impact on the economy if not capped. As such, it has used the following approaches:
- Limiting the number of operators: The authorities cap the number of operators who can get a license to offer their services in the country. What’s more, these operators must participate in an auction. As such, only the most prepared bidders get the licenses.
- Setting out strict requirements: Operating in New Zealand does not just come down to winning an auction. Instead, to qualify to bid, an operator must show that they meet all the minimum operating requirements. These include having age verification checks and adequate player protection measures. Moreover, these operators are still subject to these requirements once they get the licenses and can have their licenses revoked if they fail to adhere to these stipulations.
- Collecting levies and taxes: Operators are subject to different duties, levies, and taxes. For example, offshore operators must contribute 1.24% of their revenue to support addiction services. They are also expected to pay taxes on their profits as well as pay for their licenses.
With these checks in place, New Zealand authorities get to limit the number of operators in the market while also setting out the standards. As such, they get to have the benefits of more revenue collection while avoiding the potential negative consequences, such as operators who may target vulnerable players.
2. Practical Consumer Protections
While many people are able to engage in gambling without making decisions that can disadvantage them socially or financially, some players are vulnerable. Examples include minors and people who are likely to develop dependencies or addictions to gambling. New Zealand understands this and has thus set out several measures to ensure that such players remain protected at all times. These include:
- Imposing limits: Operators must offer players several tools that allow them to limit how much time or money they spend on the site. For example, the self-exclusion tools allow players to log off the sites for a given period so that they can limit how much time or money they spend on the site.
- Real-time monitoring: Some players are not vulnerable at the start, but instead start exhibiting problem gambling signs over time. As such, the authorities require operators to have technologies in place that can monitor players over time and study their patterns. Through AI and machine learning, operators can determine the players who are at risk and present them with resources to work through their dependencies.
- Offering problem gambling support: Players who find themselves struggling with boundaries can rely on the several resources offered through the government. These not only educate players on the risks of problem gaming, but they also provide practical support on how to navigate such setbacks.
The above requirements apply to any operator with a valid license, and those found in violation can face up to NZ$5 million in penalties.
3. The Use of Emerging Trends in Technology
When it comes to online gambling, players expect things such as live games, a wide variety of games, seamless payments, simple menus, and more. And while gambling operators in New Zealand focus on these aspects, they also pay attention to the following factors as part of their adherence to the licensing requirements:
- AI Integration: Operators are now using artificial intelligence and machine learning to study their players. On one hand, this helps them personalize experiences, which makes it easier to retain customers. But on the other hand, it helps them flag any transactions that could be fraudulent. By ensuring that only legal activities take place on their sites, they get to keep their licenses and avoid penalties.
- Compliance monitoring: Operators often run checks to ensure that their games have not been manipulated and provide the same results as indicated in their licensing agreements. In addition to these in-house checks, they are also subject to random independent checks.
Such approaches not only show the authorities that the operators are operating within the confines of the law, but they also inspire consumer confidence, both locally and internationally.
Also read: Sweepstakes Casinos as a Smart Alternative to Traditional Online Gambling
