Home » Legal Landscape of Crypto Online Gambling in New Zealand

Legal Landscape of Crypto Online Gambling in New Zealand

The development of digital currencies is an important element of universal technological trends that have already reformed many sectors, including gambling.

Attempts to slow down or oppose these innovations are frankly pointless and even harmful to overall progress.

Realizing this, the leading countries of the world are trying to adapt to the new conditions and allow the use of virtual money. And New Zealand is no exception. According to Statista, by the end of 2024, the cryptocurrency market in the country is expected to pass the threshold of $102.2 million. This shows that you can freely use cryptocurrencies seamlessly for online payments in various platforms including online casinos.

This article is sponsored content and does not reflect the opinion of the CryptoDnes team. The material does not constitute investment advice and is provided by the respective company.

But are there any specific laws and regulations regarding the use of cryptocurrencies in online gambling? And is it worth switching to this payment method when playing casino games or betting on sports?

Regulation and popularity of budget online casinos

The Gambling Act 2003 is the main document that regulates the activities of online casinos. Therefore, all operators and bookmakers in the market must comply with it. Based on the content of this regulatory act, local online gambling sites are not allowed in the country.

However, there is no special law that prohibits offshore casinos and operators from providing gambling services on the territory of the country. Furthermore, the Gambling Act does not contain any prohibitions or restrictions on the use of cryptocurrencies in online casinos. This way, New Zealanders can still enjoy their favorite casino entertainment using cryptocurrencies on gaming platforms based outside the country.

For those on a budget, $1 to $5 deposit casinos are becoming increasingly popular. Many players prefer operators of CasinoDeps with $5 free spins, which can be played with a minimum investment, and a variety of games with huge bonuses.

Cryptocurrency Regulation in New Zealand

Residents of the country wishing to participate in crypto casino activities often have concerns about whether buying and using digital tokens is legal in the country. The positive news is that New Zealand regulations and laws do not prohibit the use of decentralized financial systems.

One thing to keep in mind is that like many other countries, crypto is not fully regulated by the New Zealand government. However, this does not become an obstacle for the government to introduce appropriate taxation of income from cryptocurrency assets. The size and the tax rate varies depending on an individual’s earnings.

In most cases, the aggregate rate you will have to pay is between 10.5% and 39% – the final amount is calculated based on your annual income.

Benefits of using crypto payments for gambling

Globally, crypto gambling is on the rise. In the first quarter of 2023, the share of cryptocurrency bets reached 30% of the total. This shows that compared to the fourth quarter of 2022, there is about 19% volume growth.

These figures fully reflect the huge demand for digital coins in the online gambling space. So the residents of the country can access multiple benefits by using different cryptocurrencies in online casinos.

The most important of them cover the following points.To choose a reputable crypto operator, New Zealanders should consider the gambling site’s security measures, fair gameplay and the variety of games supported by their preferred cryptocurrency.

  • Privacy protection and increased privacy: When you join a gambling site and play with cryptocurrency, you don’t need to provide your real name to make a transaction. Therefore, you can easily hide your important information and protect your privacy to a greater extent.
  • Wide Availability: Crypto casinos are available almost everywhere, regardless of local gambling regulations and restrictions. All you need to play on these platforms is a stable internet network and nothing else.
  • Instant and convenient payments: Since crypto payments do not involve third parties, all transactions through digital tokens are almost instantaneous.

In addition, there are almost zero commissions and fees for crypto transfers, which is another significant advantage. In addition, leading gambling operators often offer exclusive bonuses and promotions specifically for players who make their deposits or withdrawals using crypto coins.

Disadvantages of Online Cryptocurrency Gambling

Apart from all the advantages mentioned, cryptocurrency gambling can also include some disadvantages. First of all, digital currencies are highly volatile and the situation in this area is changing rapidly. This means that cryptocurrency prices are constantly jumping up and down, causing some inconvenience to players and affecting their assets.

Also, cryptocurrencies are still undergoing continuous changes even though they have been around for years, which can lead to scalability issues. Another potential risk to be aware of is the security issues that may arise due to the lack of specific regulations and laws in the country.

You cannot expect help at the level of federal law in case of disputes with the casino, loss of crypto winnings, fraud or any other similar situation.

Final judgment

Overall, the integration of digital currencies by online casinos offering their services to New Zealanders has brought colossal changes to the entire iGaming market in the country. They enable offshore operators to provide seamless transaction capabilities without restricting the use of traditional payment methods and reach a global audience.

And all this with increased privacy, convenience and anonymity. So in the coming years, you can expect to see even more casino operators welcoming crypto payment features and innovations.

This article is sponsored content and does not reflect the opinion of the CryptoDnes team. The material does not constitute investment advice and is provided by the respective company.