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SkyCity at Risk of Profit Loss Due to Offshore Gambling

Several months ago, SkyCity announced that they’re planning on launching and operating their own online casino site in another country. They even mentioned that they’re willing to pay any amount …

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SkyCity at Risk of Profit Loss Due to Offshore Gambling

postimage SkyCityatRiskofProfitLossDuetoOffshoreGambling pokermachines 735x400 - SkyCity at Risk of Profit Loss Due to Offshore Gambling

Several months ago, SkyCity announced that they’re planning on launching and operating their own online casino site in another country. They even mentioned that they’re willing to pay any amount of tax to get the favour of critics regarding the unregulated site.

This is perhaps the reason why they’re brought a challenge by the Government of New Zealand, where they were required to pay an initial tax of $40 million even before their offshore operation starts.

Goods and Services Tax

GST or Goods and Services Tax is pretty simple if the provider of the goods and services are present in New Zealand. It clearly states on paper that the tax is payable. However, the matter becomes more complicated when the provider is not within New Zealand’s boundaries.

In SkyCity’s case, their services will be provided online without being present in New Zealand. This is the reason why they’re currently having problems with the tax of $40 million since there are more calculations necessary.

postimage SkyCityatRiskofProfitLossDuetoOffshoreGambling womangamble - SkyCity at Risk of Profit Loss Due to Offshore GamblingWhy did SkyCity do it in the first place?

It is found that the online gambling industry is currently worth $45 billion and this only makes it even more tempting to enter the industry. However, since New Zealand does not allow such activities to happen within their boundaries, SkyCity resorted to using offshore sites instead.

While $40 million is not exactly what got SkyCity on the edge, there are some aspects of the GST problem that made it impossible for the company to decide their next move.

$40 Million isn’t Enough of a Problem

The fact that their services will be delivered mostly to New Zealand Kiwi gamblers through the internet makes it difficult to determine the underlying problem. However, in their case, they found that there are VPN services available on the internet nowadays.

SkyCity is now struggling to find out whether it’s a good move to continue their project without waiting for any changes in New Zealand’s gambling laws.

This is because New Zealand players may use VPN services to connect to another server, making it more complicated for the casino company.

Subsequently, players from around the world besides New Zealand may connect to the country’s server making them seem like residents of New Zealand.

Since the GST is different when the gamblers are playing in or out of New Zealand, both situations will prove to be difficult to find a solution for.

SkyCity’s Solution for the Underlying Problem

For SkyCity, there are many aspects that need to be taken into consideration, such as interest or late GST.

However, they already determined that if they want to solve this problem regarding GST, they’ll need some help from the Government to sign into law some kind of change in their existing gambling legislation.

SkyCity’s move is likely to benefit the whole nation due to the tax rate. This only proves that while companies need to rely on their own nation, countries also need to rely on companies.

SkyCity Unveils Plan for Big Money Online Casino

postimage SkyCityUnveilsPlanforBigMoneyOnlineCasino insideview 735x400 - SkyCity Unveils Plan for Big Money Online Casino

SkyCity is best known for their casino entertainment, and now, they’re trying to pull off one of their biggest projects, a European-based online casino.

Since the law regarding online gambling is still incomplete, such project is irreversible and the Government can’t do anything about it.

SkyCity’s Plan for Receiving Profits

postimage SkyCityUnveilsPlanforBigMoneyOnlineCasino womanplaying - SkyCity Unveils Plan for Big Money Online Casino

According to statistics, there are currently $400 million received by online casino websites from Kiwi gamblers. The SkyCity company’s goal is to get at least $180 million of that large amounts of money.

The company also stated that they have no plans on waiting for the gambling legislation in New Zealand to undergo changes allowing for the operation of offshore Kiwi gambling websites.

While the Government was disappointed that the casino giant is making this kind of move, it only proves how insufficient the law is as of now.

A Change in the Casino Environment

This move of the casino giant is perhaps the result of the increased number of players transitioning from typical poker rooms to live dealers on the internet. This move also represents the inadequacy of the laws by the Government when it comes to tax these kinds of establishments.

SkyCity’s Plan on Bypassing New Zealand’s Gambling Law

While New Zealand does not allow the operation of online gambling facilities within their boundaries, SkyCity revealed that they’re planning on running one in another country, which should have no problems for the New Zealand Government.

postimage SkyCityUnveilsPlanforBigMoneyOnlineCasino casinooutsidesign - SkyCity Unveils Plan for Big Money Online CasinoThe casino company also stated that they’re going to focus on promoting the website to Kiwi gamblers while accepting New Zealand currency.

Council and Government members are now discussing how they should uphold the law in New Zealand since it’s not only SkyCity but also other offshore websites are entering the country without their permission since these establishments don’t need it.

SkyCity’s move of creating the site might receive a lot of criticism due to being unregulated by its own country. However, the casino company stated that they’ll be paying the tax rate straight up if that’s what it takes to start the new venture.

If SkyCity is expecting to get $180 million from Kiwi gamblers, then the tax rate may reach the $30 million mark.

No Law Broken

It was several months ago when Jackpot City, an online casino site, started promoting the website by promoting their so-called “free” gambling site when in reality, it directed to the actual gambling site. This might be a dirty trick, but it’s still allowed by law.

However, SkyCity declared that they won’t be using such tricks and they’re going to ensure that there is no law broken in the project.

With the addition of SkyCity, the competition of online casino sites will become tighter and some sites that are barely getting by may be closed down for good this time around. Hopefully, either the best gambling sites stay open or SkyCity becomes a safe and secure gambling site with the best services.

New Zealand’s Luckiest Lotto Shop Meets Luckiest Lotto Winner

postimage NewZealandsLuckiestLottoShopMeetsLuckiestLottoWinner ticketpaper 735x400 - New Zealand’s Luckiest Lotto Shop Meets Luckiest Lotto Winner

The Hawke’s Bay Lotto shop is considered as the luckiest lotto shop in New Zealand, if not of the whole world. This is evident considering that just recently, they sold their 47th winning ticket, which made over $11 million as the prize.

This ticket is particularly sold in Unichem Stortford Lodge in Hastings.

Luckiest Store in Lotto in New Zealand

Hastings’ Unichem Stortford Lodge Pharmacy is, in fact, one of the stores in the area considered to be the most likely store to sell a winning ticket.

However, what’s really surprising is that the woman who won the Powerball Jackpot $11 million in the said lotto shop was the winner of the Lotto First Division several months ago, which gave her an amount of $333,333, a third of a million.

Luckiest Winner of Lotto in New Zealand

It was a Saturday night when the Auckland woman realized that she had won the Powerball lotto when all the numbers were given, her ticket matching all, in addition to the lucky letter “R”.

While it’s very lucky for them, it’s barely believable considering that winning the Lotto First Division on top of the Powerball Jackpot Lotto is one out of 147,000,000,000,000 according to statistics.

postimage NewZealandsLuckiestLottoShopMeetsLuckiestLottoWinner lottocard - New Zealand’s Luckiest Lotto Shop Meets Luckiest Lotto Winner

This value is calculated by experts and yes, it’s definitely worth checking out since this is a once-in-a-lifetime event.

The winning ticket of the Lotto First Division that she won several months ago was purchased at Night n Day in Auckland. The winner stated that she and her husband have been renting for all their lives, but with the Lotto First Division winning a prize, they started to house hunt.

House Hunting in the Next Level

She then continued talking about how they’ll have to step up their game in house hunting with their most recent winnings of $11 million. In fact, they said they’ve started house hunting more since they got the Money on Sunday.

Not only will it solve their house problem, but her husband will also be able to retire from his job and focus on their children more.

There’s no denying that winning the Powerball Jackpot in Lotto isn’t going to be more surprising. That’s why the winner stated that she only noticed that she got all the matching numbers when the lucky letter was announced to be “R”.

postimage NewZealandsLuckiestLottoShopMeetsLuckiestLottoWinner onecard - New Zealand’s Luckiest Lotto Shop Meets Luckiest Lotto Winner

While her husband told the media that this event is barely believable, he still credits all of it to his wife with her lucky streak. He also stated that this year will be an unforgettable one for them and even for their neighbourhood, who was kept updated at that time.

This event made it possible to promote the North Shore for being one of the luckiest regions in New Zealand when it comes to Lotto.

This is perhaps the reason why Lotto players are now buying more tickets in the area, and some non-Lotto players are starting to buy too.  The North Shore has, in fact, sold a winning ticket several months ago worth $7.2 million.