Entain’s TAB Racing Club in New Zealand, an ownership program that engaged 18,000 Kiwi punters, has fallen victim to the wagering giant’s purge on costs under new chief executive Andrew Vouris.
The TAB Racing Club was costing Entain, which has a 25-year deal to run New Zealand’s totaliser and fixed odds bookmaking under NZ TAB and Betcha brands, $2.5 million annually to run.
The decision continues Entain Australia and New Zealand CEO Vouris’ wish to stabilise the business following the departure of a number of key executives, including his predecessor Dean Shannon and chief financial officer Lachlan Fitt.
Entain, which operates the Ladbrokes and Neds brands in Australia, is also facing huge fines that could total hundreds of millions of dollars for alleged serious and systemic non-compliance with Australia’s anti-money laundering and counter-terrorism financial laws.
The action has been brought by AUSTRAC after a more than two-year investigation into the corporate bookmaker.
Shannon axed the Ladbrokes Racing Club, the Australian version of the ownership experience provided to Entain’s account holders, in February where he blamed the rising costs of owning horses and greyhounds, as well as the taxes imposed on betting companies for the move.
At the time, Entain said it was committed to continuing to race its New Zealand portfolio of horses.
Vouris, who was appointed Entain Australia and NZ boss in August, says following suit in New Zealand was necessary to curb costs.
“This is a disciplined, responsible decision that allows us to get back to basics - selling bets and delivering strong returns to the New Zealand racing industry,” he said.
“We are focused on our core business of responsibly selling bets and creating innovative products, while ensuring the horses are well cared for with their new owners, and our customers enjoy the experiences they’ve already secured.
“This decision is about discipline, focus, and doing what’s right for the long term – winning, but not at all costs.”
Bren O’Brien
The TAB Racing Club enjoyed its first win at Ascot Park last November when Bella Ragazza scored for trainer Robert Dennis while the Mark Walker and Sam Bergerson-trained In Haste has been a standout for the group, carrying its silks to victory in two of her four starts.
The Snitzel filly also finished runner-up in the Group 3 Gold Trail Stakes (1200m) at Ellerslie last month.
The TAB Racing Club’s latest victory came this past weekend when Transcend posted her second consecutive win for trainers Shaune Ritchie and Colm Murray at Te Rapa.
Entain will honour all existing racing club experiences through to the end of New Zealand Cup Week in Christchurch in November.
The company has also initiated the process of selling the club’s horses. This will involve an independent appraisal, and animal welfare will be a key priority, Entain said.
