The New Zealand government has unveiled a proposal to extend TAB NZ’s monopoly on sports betting and horse racing wagering to include online platforms. This move comes as part of an amendment to the Racing Industry Act 2020, spearheaded by Racing Minister Winston Peters. The proposed legislation aims to modernize the country’s betting framework while safeguarding the financial sustainability of the racing industry.
Under the existing system, TAB NZ controls 90% of the revenue generated by New Zealand’s racing sector. The monopoly extension is designed to protect this revenue stream from the growing threat of offshore online betting operators, which the government views as a significant challenge to the gambling industry of New Zealand.
TAB NZ Monopoly Expansion Proposed
The proposed changes are part of the Coalition Government’s Q4 Action Plan, focusing on maintaining and strengthening the racing industry’s financial health in a competitive global betting environment.
Peters explained the importance of this legislative update, stating:
“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. Growing competition from offshore online betting operators poses a significant threat to the TAB NZ model.”
Legislation Introduces New Oversight Measures
The bill does more than expand TAB NZ’s monopoly. It introduces measures to enhance regulatory oversight, granting the minister authority to access information from TAB NZ to monitor its operations. Other provisions include implementing harm prevention strategies, protecting consumers, and eliminating the point of consumption charge.
“These oversight tools will ensure that TAB NZ can continue to deliver value for consumers and the racing industry and to ensure the ongoing viability of the industry.” Peters added.
The legislation has been referred to the Governance and Administration Committee for further review, where it will undergo public consultation and stakeholder input.
Economic and Community Benefits Expected
TAB NZ Chief Executive Nick Roberts expressed strong support for the proposed changes, emphasizing their potential to retain significant revenue within the country.
Estimating that New Zealanders lose NZ$180 million annually to offshore racing and sports betting operators, Roberts pointed out that retaining this money in New Zealand will not only maximize funding to local communities instead of providing profits to foreign companies, but ensure players from this region can gamble in a safe environment.
The legislative amendment is expected to deliver an additional NZ$1 billion to stakeholders over the remaining term of TAB NZ’s 25-year partnership with Entain. As part of this agreement, TAB NZ will receive a one-time payment of NZ$100 million upon the amendment’s approval.
Roberts praised Entain’s contributions to the partnership, highlighting its role in introducing modern betting options and advanced harm minimization tools through the TAB and Betcha brands.
With the racing industry heavily reliant on TAB NZ for funding, this legislation could provide much-needed stability and support for the sector while ensuring players enjoy a secure and regulated environment.
Source:
“New Zealand government proposes extending TAB NZ monopoly online”, author: Robert Fletcher, igamingbusiness.com, December 9, 2024.