Kiwis’ geoblock windfall – overseas bookies banned, triggering $100 million Entain payment

Kiwi punters will be geoblocked from accessing overseas betting agencies after the New Zealand government passed a bill tightening Entain’s monopoly on the country’s gambling dollar.

The legislation also triggers a NZ$100 million payment from wagering giant Entain, which is two years into a 25-year strategic partnership running TAB NZ and its new online bookmaker, betcha.

The legislation, which made changes to the Racing Industry Act, is expected to come into effect as soon as next week.

Entain, which also operates Ladbrokes and Neds wagering brands in Australia, welcomed the government’s passing of the legislation, which had been flagged by New Zealand Racing Minister Winston Peters last year.

“Entain is proud to be building on TAB NZ’s legacy of backing Kiwi racing and sport,” Entain Australia and New Zealand’s managing director – New Zealand Sam Moncur said. 

“We are also very aware of the privilege we have to provide a world-class betting experience to Kiwis. Entain, through TAB and betcha, will deliver odds as fair and competitive as a customer  would find in the highly competitive Australian market.  

“Kiwis love a fair go, and we’re committed to providing fair odds for our racing and sports fans into the future.” 

The amended law, which was unanimously passed through parliament on Wednesday, makes it illegal for overseas wagering operators to accept bets from punters domiciled in New Zealand.

Australia has a similar law, although it does not have a monopoly-based wagering system. 

Minister Peters, a long-standing supporter of the racing industry during his terms in parliament, said as a result of the geoblocking “increased ministerial and regulatory oversight will be in place to ensure TAB NZ operates with integrity”.

“If TAB NZ’s performance does not meet expectations, action can be taken to uphold the protection of consumers,” the minister said.

“This legislation comes at an important time for the racing industry, with TAB NZ’s announcement of the establishment of an advisory committee of industry leaders. 

“This will encourage connections and opportunities for TAB NZ to explore with the industry.”

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Peters argued that the change to legislation was required to protect the nation’s racing industry, which generates $1.9 billion for the New Zealand economy and employs 13,500 people.

“TAB NZ is the core funding source for New Zealand’s racing industry and contributes vital funding to a variety of sports codes,”the minister said.

“This legislation redirects New Zealand punters’ dollars for the benefit of the racing industry and sports here, rather than overseas commercial operators.

“It also means all sports and racing betting in New Zealand will now be in a fully regulated environment.”