It doesn’t really matter if you find yourself in Sydney or Auckland, Melbourne or Wellington, we’re pretty sure that you’d agree with us that both Australia and New Zealand are privileged to share one of the world’s strongest economic partnerships. This economic relationship goes back for five decades and has been crucial for economic progress in both countries.
Over the last five decades, numerous businesses have expanded their offer across the Tasman Sea, trying to get the most out of the opportunities that arise on the other side of the sea. Amongst these businesses is SkyCity Entertainment Group, an experienced gambling and entertainment company that is originally from Auckland, but has managed to launch itself as a significant player in both New Zealand and Australia.
In this guide we’ll be more than excited to explore the close economic ties between New Zealand and Australia, with a particular focus on the gambling industry as there are few industries that have been able to draw as much attention in both countries in recent years.
Whilst we talk you through the strong relationship between Australia and New Zealand, we’ll be using SkyCity’s fascinating story as a key example of a successful trans-Tasman business. SkyCity was established in 1996 in Auckland, New Zealand and opened its first Aussie based branch only four years later. Ever since its arrival in Adelaide the gambling venue has welcomed thousands of visitors from Australia, New Zealand and far beyond.
On Both Sides Of The Tasman Sea
Whilst economic unions exist in most continents, very few relationships have put so much focus on two countries as the economic relationship between Australia and New Zealand.
The economic relationship between our country and our neighbours has been evolving for over 50 years now and is expected to remain strong for many years to come.
Economic union exists in different forms, but in the Aussie-NZ relationship it has extended to freedom of movement allowing Aussies and Kiwis to live and work across the Tasman. This ease of movement has not only enhanced the quality of life for individuals from both countries but also bolstered business opportunities and economic growth on both sides of the Tasman Sea.
The Closer Economic Relations (CER) Agreement was implemented in 1983, and stands as one of today’s most effective free trade agreements. Thanks to close economic relations, trans-Tasman trade has flourished, with merchandise trade growing at an impressive annual rate of 10.6 percent since 1983. New Zealand has consistently been one of Australia’s top markets for elaborately transformed manufactures.
Australia remains New Zealand’s largest foreign investor, with investments exceeding AUD 56.4 billion, whilst New Zealand is also a significant investor in our country with an impressive AUD 15.5 billion stake. This strong economic partnership is reflected in the presence of nearly 700,000 Kiwis living in Australia and more than 70,000 Aussies in NZ.
SkyCity: Getting The Best Out Of Both Countries
The Kiwi company SkyCity Entertainment Group is one of the best success stories of the synergy between both countries from a gambling operator perspective. Founded in Auckland in 1996, SkyCity has grown to become one of the most dominant names in the casino and entertainment industry across both Australia and New Zealand. The company operates a total of four casinos in New Zealand and one venue in Australia. Whilst the exact offer depends on the venue, all locations across both countries are known for their range of gambling products, entertainment offerings as well as luxury options for food & drinks.
When the casino group was first established in 1996 gambling minded Kiwis were welcomed in the SkyCity Auckland complex located in the 328-metre Sky Tower. SkyCity’s journey into Australia began a few years later with the acquisition of Adelaide Casino in June 2000. What once started as a modest operation has since transformed into a major gaming venue with nearly 1000 pokie machines and 90 casino tables. SkyCity Adelaide holds the exclusive licence for table games in South Australia, tightening its monopoly in the state’s gambling market.
The Kiwi company’s commitment to growth was proven with its $339 million investment in 2011 aimed to expand the venue and bring it closer to the city’s riverfront. The investment was considered as a smart move to bring more appeal for both locals and tourists which might be one of the reasons why the casino still welcomes visitors nearly 25 years after it originally opened. For New Zealand businesses like SkyCity, Australia presents a lucrative market with a stable economy, offering a perfect environment for expansion and success. SkyCity’s shares are now traded on both the Australian and New Zealand stock exchanges, underlining its position as a key player in the trans-Tasman economic landscape.
Difference in Gambling Laws Between NZ And Australia
Whilst SkyCity has successfully navigated the business environments in both New Zealand and Australia, it must work with distinct gambling laws that apply in each country. In New Zealand, the gambling industry is governed by the Gambling Act 2003, which regulates all forms of gambling, including land-based casinos, lotteries, and sports betting. It nonetheless doesn’t leave any space for iGaming as online casinos have not yet been legalised.
Interestingly, New Zealand citizens are not prohibited from participating in online gambling platforms that are based offshore, provided that these platforms do not operate from New Zealand soil. The Act’s primary objectives are to minimise harm, ensure fairness and integrity, and tightly control the expansion of gambling activities. Outdated, there has been growing support for a new gambling bill that legalised online casino gambling and allows iGaming operators to obtain a local licence.
In the meantime, international gambling operators have been able to get the most out of the favourable market conditions as they are not explicitly prohibited from offering their products whilst they are not tied to any tax obligations in New Zealand. The number of international casino brands turning their attention to New Zealand has gradually increased over the years, but due to the lack of a regulated framework most Kiwis are uncertain about where to begin their casino journey. Notably, there is a site dedicated to New Zealand that helps New Zealanders (18+) to find licensed online casinos that accept NZ players.
Australia’s Approach Towards Gambling Legislation
In contrast, Australia has taken a completely different approach by legalising online gambling through the Interactive Gambling Act 2001 with the main ideas being to boost both player protection and tax revenues. This federal law regulates online gambling and allows for a variety of online betting activities, including sports betting and online casinos, provided the operators are licensed within Australia. This legislation has enabled a thriving online gambling market offering Australian residents a wide range of legally accessible online gambling options.
Australian gambling operators are therefore obligated to enhance their responsible gambling policy and provide players with tools and support to help to minimise excessive online gambling. Tools include readily accessible limits like session limits and loss limits whilst a player always needs to be able to receive support in case they don’t feel comfortable about their gambling behaviour.
Whereas international online gambling brands use a local Australian licence to offer their gambling products in our country, they stick to their European or Caribbean licence to operate their gambling platform in New Zealand. Interestingly, SkyCity New Zealand makes use of a European iGaming licence issued in Malta by the Malta Gaming Authority (MGA). As a consequence, all revenues are taxed in these jurisdictions rather than in New Zealand, which explains the increasing backing in New Zealand politics for an updated law that addresses the country’s potential of iGaming.
Difference Between Aussie and NZ
Another significant difference between the two countries is the legal gambling age. In New Zealand, the minimum age to enter a brick and mortar casino is set at 20 years, whilst in Australia, SkyCity Adelaide operates with a lower minimum age of 18 years. This reflects the location specific regulatory frameworks on gambling between the two countries.
These differences highlight the unique regulatory environments in New Zealand and Australia, and the need for gambling operators like SkyCity to adapt local strategies accordingly to remain compliant and successful in both markets. For now, there don’t seem to be any concrete plans amongst other gambling operators to follow the same route and cross the Tasman Sea, but punters from both countries will most likely be eager to welcome any experienced land-based casino operator from the other side of the sea.
