gambling new-zealand
Is it illegal for a company to own an overseas company that breaks the law?
<p>I live in New Zealand.</p>
<p>I have a company here in NZ which is the sole owner of an overseas company.</p>
<p>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.</p>
<p>Edit: I’m wanting to start a company in Curaçao to provide online gambling. Providing “remote interactive gambling” is illegal in New Zealand.</p>

<p>You ask</p>
<blockquote>
<p>Is it illegal for a company to own an overseas company that breaks the law?</p>
</blockquote>
<p>And</p>
<blockquote>
<p>I’m wanting to start a company in Curaçao to provide online gambling. Providing “remote interactive gambling” is illegal in New Zealand.</p>
</blockquote>
<p>An appeal to general principles is not going to be particularly useful if the law that forbids &quot;remote interactive gambling&quot; in New Zealand says something specific.  This law is the <a href="https://www.legislation.govt.nz/act/public/2003/0051/latest/whole.html" rel="nofollow noreferrer">Gambling Act 2003</a>.</p>
<p>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 &quot;remote interactive gambling&quot; says (edited for brevity and pertinence):</p>
<blockquote>
<p>remote interactive gambling (b)
does not include (iii) gambling by a person in New Zealand conducted by a gambling operator located outside New Zealand;</p>
</blockquote>
<p>So it's possible that the situation you imagine does not violate this act.  But you need to look at several things first:</p>
<ul>
<li><p>would the Curaçao company's gambling activities in fact count as
&quot;conducted by a gambling operator located outside New Zealand&quot; for this purpose?</p>
</li>
<li><p>would there be some other violation of this act even if the definition of &quot;remote interactive gambling&quot; is not met?</p>
</li>
<li><p>would there be a violation of some other act?</p>
</li>
</ul>
<p>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.</p>
