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Duties and levies
Duties and levies

Gaming machine and casino operators

If you're a gaming machine or casino operator, you'll need to pay duties on the income brought in by your gaming machine profits or casino wins. You'll also need to pay a problem gambling levy on all profits made.

Gaming machine duty

When a gaming machine operator makes a profit from its gaming machines, it must pay a gaming machine duty (GMD). The GMD is 20% of the gaming machine profits.

Gaming machine operators include any:

  • corporate society licensed to operate a gaming machine (under the Gambling Act 2003)
  • person not licensed under the Gambling Act 2003, but who operates a gaming machine.

Definition: Gaming machine

A gaming machine is any machine or device:

  • adapted, designed or constructed for gambling for money, and
  • declared by regulations to be a gambling machine.

It doesn't include a:

  • device used only to draw a lottery
  • random selection device used for housie
  • device used only to dispense tickets that is not capable of being used to decide the outcome of gambling
  • communication device that is used both to dispense tickets in and draw a lottery that is a sales promotion scheme.

If you need to pay GMD, you need to register as a gaming machine operator. You can do this by completing our gaming machine duty registration through your myIR account.

You need to file and pay GMD to us every month. The GMD return and payment are due by the 20th of the month after the period the duty applies to. You can do this through your myIR account.

Log in to your myIR account

Exemptions from paying income tax on gaming machine profits

If your only source of income is from gaming machine profits you'll automatically qualify for an exemption. This means you don't need to file income tax returns.

If you receive income from other sources, only the income from the gaming machine profits will automatically qualify for an exemption. You may still qualify for an exemption on your other income if your organisation meets certain criteria.

Find out about exemptions for charitable organisations

If your organisation doesn't qualify for an exemption you'll be required to file an income tax return each year. You should include a full set of accounts and a schedule of distributions with your return.

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Casino duty

Casino duty is payable by casino operators on gambling profits. The rate of casino duty is 4% of the casino wins. If you need to pay a casino duty, you'll need to register as a casino operator.

If you're a licensed casino operator, we'll send you a Casino duty return IR199 each month to file. Your return and payment are due by the 20th of the month after the period the duty applies to.

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Problem gambling levy

A problem gambling levy (PGL) must be paid on all gaming machine profits and casino wins.

The total payable on your profits will be worked out automatically when you file your:

  • gaming machine duty return, or
  • casino duty return.

We'll issue you with a GST invoice which provides the GST component of your PGL.

The rate for PGL is set by Order in Council and reviewed every three years. The current rates apply from 1 July 2016.

The gambling operators in the table below must pay the problem gambling levy.

Gambling operators Income liable Rate % (GST-exclusive)
Casino operators Casino wins 0.87
Non-casino gaming machine operators Gaming machine profits 1.30
New Zealand Racing Board Betting profits 0.52
New Zealand Lotteries Commission Turnover less prizes paid and payable 0.40

The rates in the table below apply for the period 1 July 2013 to 30 June 2016.

Gambling operators Income liable Rate % (GST-exclusive)
Casino operators Casino wins 0.87
Non-casino gaming machine operators Gaming machine profits 1.30
New Zealand Racing Board Betting profits 0.52
New Zealand Lotteries Commission Turnover less prizes paid and payable 0.40

Contact our Duties Unit

  • Email us at duties2@ird.govt.nz
  • Call us on 0800 105 654, between 8am and 5pm, Monday to Friday
  • Write to us at:

    The Duties Unit
    Inland Revenue
    PO Box 39 050
    Wellington Mail Centre
    Lower Hutt 5045