WARNING: Racing Act Amendment Bill 2017 288-1 Introduced To Parliament

[Guest 2Admin2]

Follow its progress here:

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_74731/racing-amendment-bill

Read it here:

Racing Amendment Bill 2017 Full Text

[Guest 2Admin2]

Looks like we will get betting on the local tiddly winks competitions now.  The following new clause enables betting on those sports that don't have a New Zealand national sporting organisation:

55AAgreements with Sport and Recreation New Zealand

(1)

This section applies if, in relation to a sport involving human competitors participating in lawful organised games, competitions, or other events held in or outside New Zealand, there is no appropriate New Zealand national sporting organisation—

(a)

that administers the sport in New Zealand; or

(b)

under whose auspices or control the events held in New Zealand are conducted (or, in the case of events held outside New Zealand, would be conducted if they were held in New Zealand).

(2)

Despite section 55(1), the Board may conduct betting on any event held in relation to the sport concerned if the Board has entered into a sports betting agreement with Sport and Recreation New Zealand that complies with the requirements in subsection (3).

(3)

A sports betting agreement between the Board and Sport and Recreation New Zealand must be on the terms and conditions agreed between the parties, including as to payment to Sport and Recreation New Zealand, under section 57(1)(d), of revenue derived from sports betting on the event or events to which the agreement relates.

[Guest 2Admin2]

Looking at Section 65 - how are they going to enforce this?

Part 6AAOffshore betting operator charges

65AAPurpose and overview of this Part

(1)

This Part relates to the provisions of this Act concerned with ensuring that a proportion of the revenue from racing betting and sports betting conducted by the Board or the Board’s agents on its behalf is paid to racing and sporting organisations in New Zealand.

(2)

The purpose of the Part is to provide for a regulatory regime under which offshore betting operators must pay charges in New Zealand in respect of their betting operations involving this country. These charges are to recognise the financial returns that offshore betting operators enjoy from bets that they take on racing and sporting events held in New Zealand and from bets that they take from people located in New Zealand.

(3)

To that end, this Part—

(a)

provides for a scheme requiring offshore betting operators to—

(i)

obtain permission from a designated authority in New Zealand before using New Zealand racing and sporting information for taking bets on racing events and sporting events taking place in New Zealand; and

(ii)

enter into an agreement with that authority setting out the terms and conditions on which the authority’s permission is granted, including the offshore betting operator’s agreement to pay charges for using that information in the operator’s betting operations:

(b)

establishes a scheme requiring offshore betting operators to pay charges in respect of bets that they take on racing and sporting events from persons located in New Zealand, whether the events are held in or outside New Zealand:

(c)

provides for the designated authority, or 1 or more delegates of the authority, to implement each scheme, including collecting the charges payable under the scheme and paying that money for purposes relating to racing and sport in New Zealand.

(4)

Subsection (3) is only a guide to the general scheme and effect of this Part.

65ABTerritorial scope

 

This Part and regulations made under section 65AV apply to an offshore betting operator regardless of where that offshore betting operator is resident or incorporated.

65ACInterpretation

 

In this Part, unless the context otherwise requires,—

betting information use agreement has the meaning set out in section 65AF(1)

betting information use charges means the charges payable under a betting use information agreement under section 65AG(a)

consumption charges means the charges payable in accordance with sections 65AJ to 65AMA

Department means the department of State that, with the authority of the Prime Minister, is for the time being responsible for the administration of this Act

designated authority means the Department or, if the Department has delegated functions or powers to another entity under section 65AE then, in relation to those functions or powers, that delegate

New Zealand racing and sporting information means information relating to any New Zealand racing event or New Zealand sporting event on which betting may occur

New Zealand racing event means a betting race held in New Zealand

New Zealand sporting event means a sporting event—

(a)

held in New Zealand; and

(b)

declared by rules made under section 54(2)(d) to be a New Zealand sporting event for the purposes of this Part; and

(c)

in respect of which one of the following applies:

(i)

the event is held under the auspices or control of a New Zealand national sporting organisation:

(ii)

there is an agreement in accordance with section 55A between the Board and Sport and Recreation New Zealand in respect of the sport concerned

offshore betting operator means a person who is located outside New Zealand and who—

(a)

takes bets on New Zealand racing events or New Zealand sporting events (whether from persons located in or outside New Zealand); or

(b)

takes bets on racing and sporting events from persons located in New Zealand (whether the events are held in or outside New Zealand)

scheme for betting information use charges means the scheme referred to in section 65AA(3)(a)

scheme for consumption charges means the scheme referred to in section 65AA(3)(b).

Designated authorities

65ADDesignated authority for each scheme

(1)

The Department is the designated authority for the scheme for betting information use charges and the designated authority for the scheme for consumption charges.

(2)

The functions of the designated authority for each scheme are to implement the scheme, including enforcing payment of the charges and distributing the charges, in accordance with this Part.

(3)

The designated authority has the powers specified in, or prescribed under, this Part.

65AEAbility to delegate

(1)

The Department may delegate in writing any of its functions or powers as a designated authority to another entity.

(2)

The Department’s power to delegate under this section may be exercised in respect of the scheme for information use charges or the scheme for consumption charges, or both or any part of those schemes.

(3)

The entities to which the Department may delegate its functions and powers include, without limitation, the Board, a Crown entity as defined in section 7 of the Crown Entities Act 2004, or another department.

(4)

The Department must, when deciding whether to exercise its power of delegation under this section in favour of another entity, take into account whether the entity has the knowledge of offshore betting operators, and existing relationships with those operators, that is necessary to perform the functions and exercise the powers that the Department proposes to delegate.

(5)

A delegation under this section must not include—

(a)

the power to delegate under this section:

(b)

the power to review a decision to issue a penalty notice under section 65AR(4)(b).

Betting information use charges

65AFRequirements on offshore betting operators before using New Zealand racing and sporting information

(1)

Every offshore betting operator must, before using New Zealand racing and sporting information in the conduct of the operator’s betting operations, obtain permission from the designated authority and enter into an agreement in accordance with section 65AG (a betting information use agreement).

(2)

The requirements in subsection (1) do not apply to an offshore betting operator if, and to the extent that, the betting operator is exempted from compliance with those requirements under section 65AO.

65AGTerms and conditions of betting information use agreement

 

The terms and conditions of a betting information use agreement must—

(a)

require the offshore betting operator to pay betting information use charges for the operator’s use of New Zealand racing and sporting information; and

(b)

require the offshore betting operator to provide prescribed information, in the prescribed manner, to the designated authority for the purpose of enabling the authority to monitor the amounts due as betting information use charges; and

(c)

provide that the betting information use charges payable under the agreement are recoverable as a debt due to the designated authority under the agreement; and

(d)

provide that the law applicable to the agreement is New Zealand law; and

(e)

provide for a dispute resolution process that the parties agree to submit to if they have a dispute relating to the agreement; and

(f)

provide that the courts of New Zealand are the courts with jurisdiction to hear and determine any proceedings relating to the agreement if the parties are unable to resolve a dispute through the dispute resolution process; and

(g)

provide that the offshore betting operator submits to the jurisdiction of the courts of New Zealand for the purposes of any proceedings referred to in paragraph (f); and

(h)

provide for any additional matters that may be prescribed.

65AHMinister must set rates of betting information use charges

(1)

The Minister must set the rates of the betting information use charges that offshore betting operators must pay.

(2)

The Minister may set the rates by way of specified figures or methods of calculation.

(3)

The Minister must set the rates—

(a)

in accordance with section 65AM; and

(b)

in the prescribed manner.

65AIPowers to enforce betting information use agreement

 

The designated authority may issue and conduct proceedings for—

(a)

determining any dispute relating to a betting information use agreement in accordance with the terms of agreement referred to in section 65AG(f):

(b)

enforcing any provisions of a betting information use agreement that do not fall within the power of the designated authority to issue proceedings under section 65AT (which provides powers for the authority to recovering unpaid charges and penalties).

Consumption charges

65AJRequirement to pay consumption charges

 

Every offshore betting operator must pay consumption charges in respect of bets that they take on racing events and sporting events, held in or outside New Zealand, from persons located in New Zealand.

65AKMinister must set rates of consumption charges

(1)

The Minister must set the rates of the consumption charges that offshore betting operators must pay.

(2)

The Minister may set the rates by way of specified figures or methods of calculation.

(3)

The Minister must set the rates—

(a)

in accordance with section 65AM; and

(b)

in the prescribed manner.

65ALInformation to be provided relating to consumption charges

(1)

An offshore betting operator who is required to pay consumption charges must provide the prescribed information to the designated authority for the purpose of enabling the authority to monitor the amounts due as consumption charges.

(2)

The information must be provided in the prescribed manner.

Limits on betting information use and consumption charges payable

65AMLimit on proportion of revenue or profit payable as information use and consumption charges

(1)

Betting information use charges and consumption charges must be set by reference to the proportion of revenue or profit that the Board pays to New Zealand racing and sports organisations under this Act or under funding agreements between the Board and New Zealand racing and sporting organisations in accordance with this Act.

(2)

In setting the rates of the charges, the Minister must seek to ensure that the total betting information use charges and consumption charges payable by offshore betting operators for a financial year, as a proportion of the total revenue or profit received that year from the bets to which those charges relate, is not greater than the total payments that the Board makes to New Zealand racing and sports organisations for a financial year, as a proportion of the Board’s total revenue or profit received that year from racing betting and sports betting conducted by the Board or its agents on behalf of the Board.

(3)

The Minister must, at least once every 3 years, review the rates set under subsection (1) and may, if necessary, adjust those rates so that they meet the requirements under subsections (1) and (2).

(4)

Any adjustment must be made in the prescribed manner.

(5)

In setting the rates, or adjusting any rate, the Minister must take into account the advice of the Board.

65AMACertain offshore betting operators not liable for charges

(1)

An offshore betting operator is not liable to pay betting information use charges or consumption charges in respect of a financial year if the operator’s betting revenue for that year is less than the minimum betting revenue.

(2)

In subsection (1), minimum betting revenue means NZ$60,000, or such other amount as may be prescribed by regulations made under section 65AV(1)(e), of betting revenue (as determined in accordance with the method for calculating revenue prescribed by regulations made under section 65AV(1)(f)) that an offshore betting operator receives in a financial year from both of the following:

(a)

bets taken on New Zealand racing events and New Zealand sporting events (whether from persons located in or outside New Zealand); and

(b)

bets taken on racing and sporting events from persons located in New Zealand (whether the events are held in or outside New Zealand).

Application of money from charges

65ANApplication of money received from charges

 

The designated authority may only apply the money received from betting information use charges and consumption charges for the following purposes:

(a)

paying the cost of administering the enforcement and collection of the betting information use charges, consumption charges, and penalties:

(b)

promoting the long-term viability of New Zealand racing and sports:

(c)

funding measures to prevent and minimise harm from gambling.

Exemptions

65AOMinister may grant exemptions

(1)

The Minister may, by notice in writing, exempt an offshore betting operator or a class of offshore betting operators (on terms and conditions, if any) from the need to comply with any 1 or more of the following:

(a)

the requirement under section 65AF to obtain permission from the designated authority before using New Zealand racing and sporting information:

(b)

the requirement under section 65AF to enter into a betting information use agreement before using New Zealand racing and sporting information:

(c)

the requirement under a betting information use agreement to pay betting information use charges:

(d)

the requirement under section 65AL to pay consumption charges.

(2)

In deciding whether to grant an exemption, the Minister must—

(a)

have regard to the purpose of this Act set out in section 3 and the purpose of this Part set out in section 65AA; and

(b)

in the case of an exemption under subsection (1)(b), be satisfied that—

(i)

the designated authority (or, as applicable, the Board, a racing code, a national sporting organisation, or Sport and Recreation New Zealand) and the offshore betting operator are parties to an agreement negotiated outside the regulatory regime provided for in this Part; and

(ii)

under the terms of the agreement, the designated authority (or any other applicable entity referred to insubparagraph (i)) receives from the offshore betting operator not less than the amount of income that the authority would receive from that offshore betting operator under this Part were the exemption not granted; and

(c)

be satisfied that the exemption will not unduly negatively affect, or be detrimental to, the long-term viability of New Zealand racing and sports; and

(d)

consult the Board and take the Board’s advice into account; and

(e)

consult the racing codes, the relevant New Zealand national sporting organisation, and Sport and Recreation New Zealand.

65APMinister may vary or revoke exemption

 

The Minister may vary or revoke an exemption under section 65AO in the same way as an exemption may be granted under that section.

65AQStatus and publication of exemptions

(1)

For the purposes of the Legislation Act 2012, an exemption granted under section 65AO—

(a)

is a disallowable instrument and must be presented to the House of Representatives under section 41 of that Act; and

(b)

is not a legislative instrument.

(2)

An exemption must, as soon as practicable after being granted, be—

(a)

published on an Internet site maintained by or on behalf of the Department; and

(b)

notified in the Gazette.

(3)

Despite subsection (2)(a), the Minister may, if satisfied that an exemption contains or refers to information that may reasonably be regarded as confidential or commercially sensitive, authorise the designated authority to redact that information from the Internet publication.

(4)

A notification in the Gazette for the purpose of subsection (2)(b) does not need to include the text of the exemption.

Penalties

65ARPenalties

(1)

A designated authority may issue a penalty notice to an offshore betting operator if the designated authority is satisfied that the offshore betting operator has—

(a)

failed to pay an amount of a betting information use charge or consumption charge on or before the date on which the charge was due and payable under the regulations; or

(b)

provided false or incorrect information to the designated authority about the amount of a charge that the offshore betting operator is due to pay.

(2)

The penalty notice may require the offshore betting operator to—

(a)

pay to the designated authority as a penalty, and in addition to the amount of the charges outstanding, the amount referred to in subsection (3); and

(b)

make that payment by the date specified in the notice.

(3)

The penalty amount stated in the notice must be the amount specified in, or the amount calculated in accordance with, regulations made under section 65AV(1)(g).

(4)

An offshore betting operator issued with a penalty notice under this section—

(a)

must pay the penalty:

(b)

may request the designated authority to review the decision to issue the notice.

(5)

A penalty notice under this section must be in the prescribed form (if any) and issued in the prescribed manner.

65ASMaximum amount of penalties

 

The amount payable as a penalty under regulations made under section 65AV(1)(g), whether the regulations specify a fixed amount or method of calculating the amount, must not be greater than—

(a)

NZ$20,000, in the case of an offshore betting operator who is an individual; or

(b)

NZ$50,000, in the case of an offshore betting operator that is a body corporate.

65ATStatus and recovery of outstanding charges and penalties

(1)

Outstanding betting information use charges, consumption charges, and penalties payable by an offshore betting operator constitute a debt due to the designated authority, and the authority may issue legal proceedings for recovery of the debt from the offshore betting operator.

(2)

The applicable law in respect of recovery of the debt is New Zealand law.

(3)

The courts of New Zealand are the courts with jurisdiction to hear and determine proceedings for recovery of the debt.

65AUObligation to pay penalty not suspended by review or legal proceedings

(1)

An offshore betting operator’s obligation to pay, and the designated authority’s right to receive and recover, a penalty imposed are not suspended by a request for review under section 65AR(4)(b) or any legal proceedings relating to the penalty.

(2)

Subsection (3) applies if an offshore betting operator pays the amount of a penalty imposed and, on review or in legal proceedings, it is found that the betting operator was not liable for that penalty or part of the penalty.

(3)

The designated authority must, as soon as practicable, refund to the offshore betting operator the amount of the penalty or part of the penalty for which the offshore betting operator was not liable.

Regulations

65AVRegulations for this Part

(1)

The Governor-General may, by Order in Council on the recommendation of the Minister in accordance withsubsection (4), make regulations for all or any of the following purposes:

(a)

prescribing minimum amounts, or the method or methods to be used for calculating minimum amounts, for the purposes of section 57(1)(d):

(b)

prescribing the financial or other relevant information that an offshore betting operator must provide to the designated authority, the manner in which that information is to be provided (including how the information must be presented, calculated, or prepared), and when the information must be provided for the purposes ofsection 65AG(b):

(c)

prescribing the financial or other relevant information that an offshore betting operator must provide to the designated authority, the manner in which that information is to be provided (including how the information must be presented, calculated, or prepared), and when the information must be provided for the purposes ofsection 65AL:

(d)

prescribing the manner in which rates and adjustments to rates must be set for the purposes of sections 65AK and 65AM:

(e)

prescribing the amount of the minimum betting revenue for the purposes of section AMA(1):

(f)

prescribing the method for calculating betting revenue for the purposes of section AMA(2):

(g)

specifying penalty amounts or the method by which penalty amounts must be calculated for the purposes ofsection 65AR(3):

(h)

prescribing the form of penalty notices for the purposes of section 65AR(5):

(i)

prescribing the manner in which penalty notices must be issued for the purposes of section 65AR(5):

(j)

prescribing the manner in which any other thing must be done for the purposes of this Part:

(k)

prescribing fees and charges payable in respect of any matter under this Part or the manner in which fees and charges must be calculated:

(l)

providing for any other matters contemplated by this Part, necessary for its administration, or necessary for giving it full effect.

(2)

Regulations made under this section may provide differently for different classes of offshore betting operator.

(3)

Regulations made under this Part are not invalid merely because they confer any discretion on, or allow any matter to be determined or approved by, any person.

(4)

The Minister, before making a recommendation relating to regulations under this Part, must consult the Board, Sport and Recreation New Zealand, and,—

(a)

if the regulations relate to racing betting, the racing codes; and

(b)

if the regulations relate to sports betting, New Zealand national sporting organisations that have entered into agreements under sections 55 and 55A.

[We're Doomed 4,855]

Thank you for putting that up for all to see. Good to see it being discussed, even if I don't have time to study it word for word right now.

[Guest 2Admin2]

Interesting that Sport and Recreation New Zealand has a bigger say than before.

[Jape 344]

How much input have the NZRB/NZTR/HarnessNZ/NZGRA had in all this?

 

[Phantom 494]

On 8/2/2017 at 2:25 AM, 2Admin2 said:

Looking at Section 65 - how are they going to enforce this?

Part 6AAOffshore betting operator charges

65AAPurpose and overview of this Part

(1)

This Part relates to the provisions of this Act concerned with ensuring that a proportion of the revenue from racing betting and sports betting conducted by the Board or the Board’s agents on its behalf is paid to racing and sporting organisations in New Zealand.

(2)

The purpose of the Part is to provide for a regulatory regime under which offshore betting operators must pay charges in New Zealand in respect of their betting operations involving this country. These charges are to recognise the financial returns that offshore betting operators enjoy from bets that they take on racing and sporting events held in New Zealand and from bets that they take from people located in New Zealand.

(3)

To that end, this Part—

(a)

provides for a scheme requiring offshore betting operators to—

(i)

obtain permission from a designated authority in New Zealand before using New Zealand racing and sporting information for taking bets on racing events and sporting events taking place in New Zealand; and

(ii)

enter into an agreement with that authority setting out the terms and conditions on which the authority’s permission is granted, including the offshore betting operator’s agreement to pay charges for using that information in the operator’s betting operations:

(b)

establishes a scheme requiring offshore betting operators to pay charges in respect of bets that they take on racing and sporting events from persons located in New Zealand, whether the events are held in or outside New Zealand:

(c)

provides for the designated authority, or 1 or more delegates of the authority, to implement each scheme, including collecting the charges payable under the scheme and paying that money for purposes relating to racing and sport in New Zealand.

(4)

Subsection (3) is only a guide to the general scheme and effect of this Part.

65ABTerritorial scope

 

This Part and regulations made under section 65AV apply to an offshore betting operator regardless of where that offshore betting operator is resident or incorporated.

65ACInterpretation

 

In this Part, unless the context otherwise requires,—

betting information use agreement has the meaning set out in section 65AF(1)

betting information use charges means the charges payable under a betting use information agreement under section 65AG(a)

consumption charges means the charges payable in accordance with sections 65AJ to 65AMA

Department means the department of State that, with the authority of the Prime Minister, is for the time being responsible for the administration of this Act

designated authority means the Department or, if the Department has delegated functions or powers to another entity under section 65AE then, in relation to those functions or powers, that delegate

New Zealand racing and sporting information means information relating to any New Zealand racing event or New Zealand sporting event on which betting may occur

New Zealand racing event means a betting race held in New Zealand

New Zealand sporting event means a sporting event—

(a)

held in New Zealand; and

(b)

declared by rules made under section 54(2)(d) to be a New Zealand sporting event for the purposes of this Part; and

(c)

in respect of which one of the following applies:

(i)

the event is held under the auspices or control of a New Zealand national sporting organisation:

(ii)

there is an agreement in accordance with section 55A between the Board and Sport and Recreation New Zealand in respect of the sport concerned

offshore betting operator means a person who is located outside New Zealand and who—

(a)

takes bets on New Zealand racing events or New Zealand sporting events (whether from persons located in or outside New Zealand); or

(b)

takes bets on racing and sporting events from persons located in New Zealand (whether the events are held in or outside New Zealand)

scheme for betting information use charges means the scheme referred to in section 65AA(3)(a)

scheme for consumption charges means the scheme referred to in section 65AA(3)(b).

Designated authorities

65ADDesignated authority for each scheme

(1)

The Department is the designated authority for the scheme for betting information use charges and the designated authority for the scheme for consumption charges.

(2)

The functions of the designated authority for each scheme are to implement the scheme, including enforcing payment of the charges and distributing the charges, in accordance with this Part.

(3)

The designated authority has the powers specified in, or prescribed under, this Part.

65AEAbility to delegate

(1)

The Department may delegate in writing any of its functions or powers as a designated authority to another entity.

(2)

The Department’s power to delegate under this section may be exercised in respect of the scheme for information use charges or the scheme for consumption charges, or both or any part of those schemes.

(3)

The entities to which the Department may delegate its functions and powers include, without limitation, the Board, a Crown entity as defined in section 7 of the Crown Entities Act 2004, or another department.

(4)

The Department must, when deciding whether to exercise its power of delegation under this section in favour of another entity, take into account whether the entity has the knowledge of offshore betting operators, and existing relationships with those operators, that is necessary to perform the functions and exercise the powers that the Department proposes to delegate.

(5)

A delegation under this section must not include—

(a)

the power to delegate under this section:

(b)

the power to review a decision to issue a penalty notice under section 65AR(4)(b).

Betting information use charges

65AFRequirements on offshore betting operators before using New Zealand racing and sporting information

(1)

Every offshore betting operator must, before using New Zealand racing and sporting information in the conduct of the operator’s betting operations, obtain permission from the designated authority and enter into an agreement in accordance with section 65AG (a betting information use agreement).

(2)

The requirements in subsection (1) do not apply to an offshore betting operator if, and to the extent that, the betting operator is exempted from compliance with those requirements under section 65AO.

65AGTerms and conditions of betting information use agreement

 

The terms and conditions of a betting information use agreement must—

(a)

require the offshore betting operator to pay betting information use charges for the operator’s use of New Zealand racing and sporting information; and

(b)

require the offshore betting operator to provide prescribed information, in the prescribed manner, to the designated authority for the purpose of enabling the authority to monitor the amounts due as betting information use charges; and

(c)

provide that the betting information use charges payable under the agreement are recoverable as a debt due to the designated authority under the agreement; and

(d)

provide that the law applicable to the agreement is New Zealand law; and

(e)

provide for a dispute resolution process that the parties agree to submit to if they have a dispute relating to the agreement; and

(f)

provide that the courts of New Zealand are the courts with jurisdiction to hear and determine any proceedings relating to the agreement if the parties are unable to resolve a dispute through the dispute resolution process; and

(g)

provide that the offshore betting operator submits to the jurisdiction of the courts of New Zealand for the purposes of any proceedings referred to in paragraph (f); and

(h)

provide for any additional matters that may be prescribed.

65AHMinister must set rates of betting information use charges

(1)

The Minister must set the rates of the betting information use charges that offshore betting operators must pay.

(2)

The Minister may set the rates by way of specified figures or methods of calculation.

(3)

The Minister must set the rates—

(a)

in accordance with section 65AM; and

(b)

in the prescribed manner.

65AIPowers to enforce betting information use agreement

 

The designated authority may issue and conduct proceedings for—

(a)

determining any dispute relating to a betting information use agreement in accordance with the terms of agreement referred to in section 65AG(f):

(b)

enforcing any provisions of a betting information use agreement that do not fall within the power of the designated authority to issue proceedings under section 65AT (which provides powers for the authority to recovering unpaid charges and penalties).

Consumption charges

65AJRequirement to pay consumption charges

 

Every offshore betting operator must pay consumption charges in respect of bets that they take on racing events and sporting events, held in or outside New Zealand, from persons located in New Zealand.

65AKMinister must set rates of consumption charges

(1)

The Minister must set the rates of the consumption charges that offshore betting operators must pay.

(2)

The Minister may set the rates by way of specified figures or methods of calculation.

(3)

The Minister must set the rates—

(a)

in accordance with section 65AM; and

(b)

in the prescribed manner.

65ALInformation to be provided relating to consumption charges

(1)

An offshore betting operator who is required to pay consumption charges must provide the prescribed information to the designated authority for the purpose of enabling the authority to monitor the amounts due as consumption charges.

(2)

The information must be provided in the prescribed manner.

Limits on betting information use and consumption charges payable

65AMLimit on proportion of revenue or profit payable as information use and consumption charges

(1)

Betting information use charges and consumption charges must be set by reference to the proportion of revenue or profit that the Board pays to New Zealand racing and sports organisations under this Act or under funding agreements between the Board and New Zealand racing and sporting organisations in accordance with this Act.

(2)

In setting the rates of the charges, the Minister must seek to ensure that the total betting information use charges and consumption charges payable by offshore betting operators for a financial year, as a proportion of the total revenue or profit received that year from the bets to which those charges relate, is not greater than the total payments that the Board makes to New Zealand racing and sports organisations for a financial year, as a proportion of the Board’s total revenue or profit received that year from racing betting and sports betting conducted by the Board or its agents on behalf of the Board.

(3)

The Minister must, at least once every 3 years, review the rates set under subsection (1) and may, if necessary, adjust those rates so that they meet the requirements under subsections (1) and (2).

(4)

Any adjustment must be made in the prescribed manner.

(5)

In setting the rates, or adjusting any rate, the Minister must take into account the advice of the Board.

65AMACertain offshore betting operators not liable for charges

(1)

An offshore betting operator is not liable to pay betting information use charges or consumption charges in respect of a financial year if the operator’s betting revenue for that year is less than the minimum betting revenue.

(2)

In subsection (1), minimum betting revenue means NZ$60,000, or such other amount as may be prescribed by regulations made under section 65AV(1)(e), of betting revenue (as determined in accordance with the method for calculating revenue prescribed by regulations made under section 65AV(1)(f)) that an offshore betting operator receives in a financial year from both of the following:

(a)

bets taken on New Zealand racing events and New Zealand sporting events (whether from persons located in or outside New Zealand); and

(b)

bets taken on racing and sporting events from persons located in New Zealand (whether the events are held in or outside New Zealand).

Application of money from charges

65ANApplication of money received from charges

 

The designated authority may only apply the money received from betting information use charges and consumption charges for the following purposes:

(a)

paying the cost of administering the enforcement and collection of the betting information use charges, consumption charges, and penalties:

(b)

promoting the long-term viability of New Zealand racing and sports:

(c)

funding measures to prevent and minimise harm from gambling.

Exemptions

65AOMinister may grant exemptions

(1)

The Minister may, by notice in writing, exempt an offshore betting operator or a class of offshore betting operators (on terms and conditions, if any) from the need to comply with any 1 or more of the following:

(a)

the requirement under section 65AF to obtain permission from the designated authority before using New Zealand racing and sporting information:

(b)

the requirement under section 65AF to enter into a betting information use agreement before using New Zealand racing and sporting information:

(c)

the requirement under a betting information use agreement to pay betting information use charges:

(d)

the requirement under section 65AL to pay consumption charges.

(2)

In deciding whether to grant an exemption, the Minister must—

(a)

have regard to the purpose of this Act set out in section 3 and the purpose of this Part set out in section 65AA; and

(b)

in the case of an exemption under subsection (1)(b), be satisfied that—

(i)

the designated authority (or, as applicable, the Board, a racing code, a national sporting organisation, or Sport and Recreation New Zealand) and the offshore betting operator are parties to an agreement negotiated outside the regulatory regime provided for in this Part; and

(ii)

under the terms of the agreement, the designated authority (or any other applicable entity referred to insubparagraph (i)) receives from the offshore betting operator not less than the amount of income that the authority would receive from that offshore betting operator under this Part were the exemption not granted; and

(c)

be satisfied that the exemption will not unduly negatively affect, or be detrimental to, the long-term viability of New Zealand racing and sports; and

(d)

consult the Board and take the Board’s advice into account; and

(e)

consult the racing codes, the relevant New Zealand national sporting organisation, and Sport and Recreation New Zealand.

65APMinister may vary or revoke exemption

 

The Minister may vary or revoke an exemption under section 65AO in the same way as an exemption may be granted under that section.

65AQStatus and publication of exemptions

(1)

For the purposes of the Legislation Act 2012, an exemption granted under section 65AO—

(a)

is a disallowable instrument and must be presented to the House of Representatives under section 41 of that Act; and

(b)

is not a legislative instrument.

(2)

An exemption must, as soon as practicable after being granted, be—

(a)

published on an Internet site maintained by or on behalf of the Department; and

(b)

notified in the Gazette.

(3)

Despite subsection (2)(a), the Minister may, if satisfied that an exemption contains or refers to information that may reasonably be regarded as confidential or commercially sensitive, authorise the designated authority to redact that information from the Internet publication.

(4)

A notification in the Gazette for the purpose of subsection (2)(b) does not need to include the text of the exemption.

Penalties

65ARPenalties

(1)

A designated authority may issue a penalty notice to an offshore betting operator if the designated authority is satisfied that the offshore betting operator has—

(a)

failed to pay an amount of a betting information use charge or consumption charge on or before the date on which the charge was due and payable under the regulations; or

(b)

provided false or incorrect information to the designated authority about the amount of a charge that the offshore betting operator is due to pay.

(2)

The penalty notice may require the offshore betting operator to—

(a)

pay to the designated authority as a penalty, and in addition to the amount of the charges outstanding, the amount referred to in subsection (3); and

(b)

make that payment by the date specified in the notice.

(3)

The penalty amount stated in the notice must be the amount specified in, or the amount calculated in accordance with, regulations made under section 65AV(1)(g).

(4)

An offshore betting operator issued with a penalty notice under this section—

(a)

must pay the penalty:

(b)

may request the designated authority to review the decision to issue the notice.

(5)

A penalty notice under this section must be in the prescribed form (if any) and issued in the prescribed manner.

65ASMaximum amount of penalties

 

The amount payable as a penalty under regulations made under section 65AV(1)(g), whether the regulations specify a fixed amount or method of calculating the amount, must not be greater than—

(a)

NZ$20,000, in the case of an offshore betting operator who is an individual; or

(b)

NZ$50,000, in the case of an offshore betting operator that is a body corporate.

65ATStatus and recovery of outstanding charges and penalties

(1)

Outstanding betting information use charges, consumption charges, and penalties payable by an offshore betting operator constitute a debt due to the designated authority, and the authority may issue legal proceedings for recovery of the debt from the offshore betting operator.

(2)

The applicable law in respect of recovery of the debt is New Zealand law.

(3)

The courts of New Zealand are the courts with jurisdiction to hear and determine proceedings for recovery of the debt.

65AUObligation to pay penalty not suspended by review or legal proceedings

(1)

An offshore betting operator’s obligation to pay, and the designated authority’s right to receive and recover, a penalty imposed are not suspended by a request for review under section 65AR(4)(b) or any legal proceedings relating to the penalty.

(2)

Subsection (3) applies if an offshore betting operator pays the amount of a penalty imposed and, on review or in legal proceedings, it is found that the betting operator was not liable for that penalty or part of the penalty.

(3)

The designated authority must, as soon as practicable, refund to the offshore betting operator the amount of the penalty or part of the penalty for which the offshore betting operator was not liable.

Regulations

65AVRegulations for this Part

(1)

The Governor-General may, by Order in Council on the recommendation of the Minister in accordance withsubsection (4), make regulations for all or any of the following purposes:

(a)

prescribing minimum amounts, or the method or methods to be used for calculating minimum amounts, for the purposes of section 57(1)(d):

(b)

prescribing the financial or other relevant information that an offshore betting operator must provide to the designated authority, the manner in which that information is to be provided (including how the information must be presented, calculated, or prepared), and when the information must be provided for the purposes ofsection 65AG(b):

(c)

prescribing the financial or other relevant information that an offshore betting operator must provide to the designated authority, the manner in which that information is to be provided (including how the information must be presented, calculated, or prepared), and when the information must be provided for the purposes ofsection 65AL:

(d)

prescribing the manner in which rates and adjustments to rates must be set for the purposes of sections 65AK and 65AM:

(e)

prescribing the amount of the minimum betting revenue for the purposes of section AMA(1):

(f)

prescribing the method for calculating betting revenue for the purposes of section AMA(2):

(g)

specifying penalty amounts or the method by which penalty amounts must be calculated for the purposes ofsection 65AR(3):

(h)

prescribing the form of penalty notices for the purposes of section 65AR(5):

(i)

prescribing the manner in which penalty notices must be issued for the purposes of section 65AR(5):

(j)

prescribing the manner in which any other thing must be done for the purposes of this Part:

(k)

prescribing fees and charges payable in respect of any matter under this Part or the manner in which fees and charges must be calculated:

(l)

providing for any other matters contemplated by this Part, necessary for its administration, or necessary for giving it full effect.

(2)

Regulations made under this section may provide differently for different classes of offshore betting operator.

(3)

Regulations made under this Part are not invalid merely because they confer any discretion on, or allow any matter to be determined or approved by, any person.

(4)

The Minister, before making a recommendation relating to regulations under this Part, must consult the Board, Sport and Recreation New Zealand, and,—

(a)

if the regulations relate to racing betting, the racing codes; and

(b)

if the regulations relate to sports betting, New Zealand national sporting organisations that have entered into agreements under sections 55 and 55A.

That's the problem. They can't. If overseas bookmakers say F. you, we're not paying you one cent, the government can't do anything. Which makes the whole bill a waste of time. 

[Leggy 4,076]

On 8/4/2017 at 1:01 PM, Phantom said:

That's the problem. They can't. If overseas bookmakers say F. you, we're not paying you one cent, the government can't do anything. Which makes the whole bill a waste of time. 

The DIA agree with you Phantom.

The critical line in the legislation is this:

The applicable law in respect of recovery of the debt is New Zealand law.

I don't think New Zealand Law has any jurisdiction in relation to overseas bookmakers with respect to their operations outside NZ.

Aside from that, even with full bookmaker compliance, the estimated gains are probably ten times or more the best peer reviewed estimates. It's all smoke and mirrors, evidently to justify spending money in advance that they don't have and are unlikely to ever receive.

[Guest 2Admin2]

Interesting - the single biggest legislative change in the last decade to affect Racing and no one wants to debate it!

You can worry all you want about the state of the tracks but if there isn't any revenue to fund repair it matters diddly squat.  Don't expect a handout from Government as that is politically untenable.

[Midget 4,489]

I'm sure he won't mind me quoting him, but Michael Stiassny always warned that if the racing industry risked amending The Racing Act they'd lose the control they currently have over the revenue and profits generated by other sports.

Given that there's little or no evidence that the NZRB sees racing as a priority you'd hope we're not opening a can of worms here.

[Guest 2Admin2]

3 minutes ago, Midget said:

I'm sure he won't mind me quoting him, but Michael Stiassny always warned that if the racing industry risked amending The Racing Act they'd lose the control they currently have over the revenue and profits generated by other sports.

Given that there's little or no evidence that the NZRB sees racing as a priority you'd hope we're not opening a can of worms here.

Yes and Clause 55A is a classic case of that.  I remember Midge you posting your concern about how the NZ Basketball Association pocketed a large amount of money from the TAB Sports betting.  If my interpretation is correct the new clause creates more leakage especially if the costs are allocated evenly.

[Midget 4,489]

There is a lot of wriggle room in 65AN.

Yes, basketball got a one million pay out, but when I asked head office I was assured that as a sport they generated far more ( although no one will talk about exactly how much profit each sport generates.)

My concern is that ( say rugby ) sees this as an opportunity to say to the NZRB, look we'll enter into a contract for you to sell our events/product internationally but we want ALL the consumption fees and a fair proportional share of the profits.

I'm close to a member of the NZRFU commerce committee, they're very smart people, as are the players collective, and they will latch on here because it makes no sense for them to provide all the media and spill their blood so NZ racing can waste the fruits of their endeavors.

At the moment virtually every sport and pokie machine is working for the racing industry, but it appears to me that could change really quickly, to our detriment, and if this legislation has been approved by NZTR then God forbid because if brains were dynamite the NZTR board couldn't blow the wax out of their ears.

 

 

 

 

[Leggy 4,076]

Yep, 65AN is a doozy. Big change in purpose from the current:

(c) to promote the long-term viability of New Zealand racing.

to:

(b) promoting the long-term viability of New Zealand racing and sports:

Probably should rename the act to the Racing and Sports Act while they are at it.

[Ohokaman 5,825]

1 hour ago, Midget said:

I'm sure he won't mind me quoting him, but Michael Stiassny always warned that if the racing industry risked amending The Racing Act they'd lose the control they currently have over the revenue and profits generated by other sports.

Given that there's little or no evidence that the NZRB sees racing as a priority you'd hope we're not opening a can of worms here.

Particularly if the toothy one and the Greens get in...their take on things might be quite different,

[Guest 2Admin2]

Unfortunately it is a little bit too late now to openly challenge these clauses.  Racing will look churlish.  In the past there were behind doors deals to compensate but I don't see that happening in the current political climate.  I guess once again this was a compromise deal to get the amendment through however I don't think anyone with any intelligence did the revenue financials correctly.  Even the DIA says the changes are very unlikely to raise the revenues projected by NZRB/NZTR.

[Midget 4,489]

This is an interesting reaction by multinational betting agencies to a change in a country's law, although clearly this is about legality as distinct from paying a fee to a supplier.

Mind you I guess refusing to pay the proposed fee makes the betting agency guilty of breaking NZ laws, and that's illegal.

http://www.smh.com.au/business/online-poker-giants-exit-australia-as-tougher-laws-loom-20170801-gxmxyy.html

 

[Guest 2Admin2]

41 minutes ago, Midget said:

This is an interesting reaction by multinational betting agencies to a change in a country's law, although clearly this is about legality as distinct from paying a fee to a supplier.

Mind you I guess refusing to pay the proposed fee makes the betting agency guilty of breaking NZ laws, and that's illegal.

http://www.smh.com.au/business/online-poker-giants-exit-australia-as-tougher-laws-loom-20170801-gxmxyy.html

 

Correct the online poker issue is about legality.  It should be noted that overseas providers are just going - thanks we'll just exit the market rather than have to bother with your laws.

It's a murky legal area Midge.  You only have to look at the DotCom debacle.  The moot to debate is how freely available is the information that forms the basis of creating a racing book - e.g.  the race field and form.  We all know that there are many sources of that information and much of it is not charged for.  

Does our overseas turnover really matter to overseas bookies or will they go like the online poker suppliers - thanks but no thanks.  

The internet doesn't conform to normal legislative boundaries.

In my opinion the best option for NZ Racing is to sub-contract everything to an overseas Agency - but you wont see the big salary NZRB boys agreeing to that!  They wouldn't have a job!

The irony of course is that under this proposed bill the NZ Texas Hold'm Association could seek revenue from the TAB.  Further irony is they probably already get some funding through Clubs NZ pokie machines!

[Leggy 4,076]

1 hour ago, 2Admin2 said:

Does our overseas turnover really matter to overseas bookies or will they go like the online poker suppliers - thanks but no thanks. 

That's an interesting question. I think the idea is that if they do go thanks but no thanks, the related punter losses will shift to providers who are paying fees and taking bets on NZ Racing. I'm not convinced that is what will happen to any great degree.

[Guest 2Admin2]

3 minutes ago, Leggy said:

That's an interesting question. I think the idea is that if they do go thanks but no thanks, the related punter losses will shift to providers who are paying fees and taking bets on NZ Racing. I'm not convinced that is what will happen to any great degree.

I tend to agree.  Plus I don't see where they can enforce collecting anything from a NZ punters bets who uses an overseas provider to bet on overseas races.  So a possible outcome is that a % of NZ punters using overseas providers to punt on NZ races will just focus on overseas races.  I'd love to see the analysis and modelling the NZRB have done around the possible outcomes.  Assuming there has been some.

[Leggy 4,076]

Only voluntary compliance will work for that idea and serious  NZ based punters will probably just set up accounts using overseas bank accounts and addresses and perhaps use overseas IPs to interact as is required now to bet in some jurisdictions, so the provider won't even know the bets are coming from NZ residents. Can't really see how they can enforce that.

[Insider 3,947]

12 hours ago, Ohokaman said:

Particularly if the toothy one and the Greens get in...their take on things might be quite different,

I doubt it. The right winged lot have done zero for us, whereas it was the left, mainly Winston but in conjunction with Labour who last did something. 

Guess we will just have to wait and see, only seven weeks to go plus the sorting out, like what job Winston wants etc. 

Liz

[Guest 2Admin2]

9 hours ago, Insider said:

I doubt it. The right winged lot have done zero for us, whereas it was the left, mainly Winston but in conjunction with Labour who last did something. 

Guess we will just have to wait and see, only seven weeks to go plus the sorting out, like what job Winston wants etc. 

Liz

Don't expect any handouts this time.  The money thrown at stakes should never happen again.  It had the effect of creating a false sense of entitlement and security.  It blinkered the industry from addressing the fundamental issues.  The tax correction was a one off and the industry frittered away that income on stakes and worthless projects.   As well 2006 was a different political landscape to now.  No matter how long the industry quotes out of date statistics about the industry's contribution to the economy it wont make a jot of difference.  The industry is half what it was in 2006.

Time to face reality and realise the sport of kings needs to stand on its own two feet and unfortunately the island it stands on is rapidly diminishing.

http://www.stuff.co.nz/sunday-star-times/features/feature-archive/549208/Winstons-one-horse-race

[Midget 4,489]

9 hours ago, Insider said:

I doubt it. The right winged lot have done zero for us, whereas it was the left, mainly Winston but in conjunction with Labour who last did something. 

Guess we will just have to wait and see, only seven weeks to go plus the sorting out, like what job Winston wants etc. 

Liz

Since when has Winston been of the left persuasion ??

[Guest 2Admin2]

7 minutes ago, Midget said:

Since when has Winston been of the left persuasion ??

More like a Centralist!  The reddest part of him is his neck!

[Berri 2,131]

Pardon my French but in all my years as being an interested party in the financial welfare of racing, I have never seen a bigger garrotting of the industry than I am experiencing through reading the proposed amendments to the Racing Act.  We can't possibly be bent over more, we are allowing a 30 meter run up, the phalanx is broader in width and the sphincter less lubricated.

EVERYTHING is I the hands of the government and independently appointed persons who have no knowledge or interest in the horse industry. The terms of ANY negotiations, in respect of take outs, distributions to racing and/ or competition of the value of data falls clearly in the hands of the "Department" and the Minister for Racing.

Are any of you going to feel compelled to fight our corner?This Act fucks us all. Don't you see this?

We stringently appealed to others in respect of the 2003 Amendments where the government effectively took charge of the industry by repealing any challenge to the racing's potential ownership of the tote. No one listened to us. We objected to the process where the accounts had to be signed off by the Minister for Racing and that he had the right to appoint the Board. That was light weight in comparison to this debacle. Now everything is gone...It is election year...

Fight for this....it's wrong....we have been dicked.....