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I live in New Zealand.

I have a company here in NZ which is the sole owner of an overseas company.

The company overseas has activity that is legal in that country, but very illegal back here in NZ. Would this be breaking the law at all? I understand that it would probably be looked down upon though.

Edit: I’m wanting to start a company in Curaçao to provide online gambling. Providing “remote interactive gambling” is illegal in New Zealand.

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    an example please? Like... Is your company overseas doing something like... cultivating Coca plants in Peru, Bolivia or Columbia, which is illegal in NZ?
    – Trish
    Commented Sep 17, 2022 at 12:54
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    Please clarify your specific problem or provide additional details to highlight exactly what you need. As it's currently written, it's hard to tell exactly what you're asking.
    – Community Bot
    Commented Sep 17, 2022 at 13:16
  • @Trish I’ve updated my question now, hopefully it’s a bit more informative.
    – Enzo
    Commented Sep 18, 2022 at 8:43
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    Would the company in Curaçao target NZ customers?
    – Greendrake
    Commented Sep 18, 2022 at 8:47
  • @Greendrake If it's legal, yes. Although, according to dia.govt.nz, "Advertising overseas gambling is prohibited under section 16 of the Gambling Act 2003."
    – Enzo
    Commented Sep 18, 2022 at 9:39

1 Answer 1

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You ask

Is it illegal for a company to own an overseas company that breaks the law?

And

I’m wanting to start a company in Curaçao to provide online gambling. Providing “remote interactive gambling” is illegal in New Zealand.

An appeal to general principles is not going to be particularly useful if the law that forbids "remote interactive gambling" in New Zealand says something specific. This law is the Gambling Act 2003.

Now this is a complex act with hundreds of sections and dozens of definitions, and plus this is the internet, so we can't give you actual legal advice, but I can point out that the definition of "remote interactive gambling" says (edited for brevity and pertinence):

remote interactive gambling (b) does not include (iii) gambling by a person in New Zealand conducted by a gambling operator located outside New Zealand;

So it's possible that the situation you imagine does not violate this act. But you need to look at several things first:

  • would the Curaçao company's gambling activities in fact count as "conducted by a gambling operator located outside New Zealand" for this purpose?

  • would there be some other violation of this act even if the definition of "remote interactive gambling" is not met?

  • would there be a violation of some other act?

Fines for violating provisions of this act range up to $5000, with advertising overseas gambling at the top of the list. With a law of this complexity and stakes of this magnitude (gambling imagery caught only in proofreading, but I'll let it stand), it would be sheer folly to embark on such a venture without retaining a lawyer who has significant experience relating directly to this act and to the question of corporate liability in multinational corporations.

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  • This is a great answer! I think it will count as an operator located outside of New Zealand, because the license will be obtained in Curaçao, hosted in Curacao etc.
    – Enzo
    Commented Sep 18, 2022 at 11:41
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    @Enzo "I think it will count as an operator located outside of New Zealand, because the license will be obtained in Curaçao, hosted in Curacao etc." You might want to check whether that question has ever been considered in a New Zealand court before you form a firm opinion, as well as looking into how the fines are applied. If your Curaçao site has something on it that counts as advertising itself, and 10 people load the site in New Zealand, does that make you liable for a $50,000 fine? If so, and 100 people load it, could you afford the $500,000 fine?
    – phoog
    Commented Sep 18, 2022 at 11:48
  • I completely agree with you, and I'm in the process of speaking to some professionals that can help me along this journey! I really appreciate your help, I'd upvote all your comments if I could!
    – Enzo
    Commented Sep 19, 2022 at 1:54

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