New Zealand racing is expected to receive a further windfall with confirmation that the government will introduce a “legislative net” which will not only give TAB NZ a monopoly but also trigger a $100 million bonus payment from Entain.
Racing Minister Winston Peters has now introduced the legislation required to ban offshore operators, such as Australian-based wagering service providers, from servicing customers in New Zealand.
The monopoly will prove a major boost for TAB NZ, which entered a 25-year deal with Entain in June 2023, a key aspect of which was that a further $100 million would be paid should the government pass the required legislation to grant exclusivity.
Peters said the amendments to the Racing Industry Act were crucial for the purposes of funding the New Zealand racing industry, which has already received a significant boost from Entain’s initial investment.
“This legislation will enhance the long-term sustainability of New Zealand’s racing industry by making TAB NZ New Zealand’s sole provider for sports and race betting both on land and online,” Peters said.
“Growing competition from offshore online betting operators poses a significant threat to the TAB NZ model.
“This change brings the model up-to-date with the current sports betting climate and will ensure the financial sustainability of the racing industry, as established in the Coalition Government’s Q4 Action Plan for New Zealand.”
Warwick Barr
Among the first to welcome the introduction of the bill before parliament was TAB NZ.
“This is a positive outcome which will have national impact,” said TAB NZ chief executive Nick Roberts.
“We estimate Kiwis lose $180 million annually to offshore racing and sports betting operators. Retaining this money in New Zealand will not only maximise funding to our communities instead of providing profits to foreign companies, but also ensure Kiwis can bet in a safe and regulated environment.”
The TAB was established as New Zealand’s sole betting operator in 1950 but the emergence of the Australian corporate betting market over the past 15 years has impacted its business model.
“Critically this will deliver an additional $1 billion to our stakeholders over the remaining term of our strategic partnership with Entain,” Roberts said.
“It’s excellent timing for the legislative net as Entain is now delivering a world-class betting product to local punters. In a short time, Entain has introduced market-leading harm minimisation tools alongside modern betting options across two distinctively Kiwi brands – TAB and betcha.”
Bren O’Brien
As well as the $100 million up front payment, TAB NZ will receive increased revenue share and other payments over the remainder of the 25-year strategic partnership.
“The legislative net will materially boost TAB NZ’s funding outcomes from the strategic partnership, providing a major boost to the racing industry and sporting bodies,” Roberts said.
The bill also gives new oversight powers for the Minister to seek information from TAB NZ and regulatory oversight of the prohibition on other operators.
Other changes to the legislation include regulation-making powers for harm prevention and minimisation, and consumer protection, and removing the Point of Consumption Charge.
The Bill will now be referred to the Governance and Administration Committee for a select committee process.
