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Online Gambling Results in Smaller Community Grants in New Zealand

Online Gambling Results in Smaller Community Grants in New Zealand

In New Zealand the Dunedin City Council committee has been told that the increased popularity of online gambling might be reducing the money returned to the community through grants.

Online Gambling Results in Smaller Community Grants in New Zealand

As the government cannot tax offshore gambling operators, the money being returned to the community is falling as the popularity of online gambling increases

By law in New Zealand about a third of all takings from gambling machines must be returned to the community as grants.

The last five years has seen a significant drop in the amount spent on Dunedin’s slot machines, in April and June 2007 $5,730,681.28 was bet but only $4,720,582.89 was bet between October and December 2012.

There has also been a drop in the number of gaming machine venues; it is down to 42 from 55 in 2007. It is thought that online gambling could be a major factor in the decline of gambling machines.

Internet gambling is steadily growing in popularity, especially amongst the younger generation who are more familiar with computers.

However, unless gamers spend their money on websites operated from within New Zealand, money spent on internet gambling is not returned to the community as the government has no way of taxing offshore online gambling sites.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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