New Zealand aims to extend TAB NZ's monopoly to online sports and racing betting, promising increased revenue and consumer protection.
The New Zealand government has proposed legislation to expand TAB NZ's monopoly, granting exclusive rights to handle online sports and horse racing betting. The move is designed to increase funding for the local racing industry while safeguarding consumers from offshore betting risks.
The proposed amendment to the Racing Industry Act 2020, introduced by Racing Minister Winston Peters, would establish TAB NZ as the sole provider of all sports and racing betting in New Zealand, including online operations. This legislation aims to modernize TAB NZ's operational model, addressing the challenges posed by offshore operators.
Peters emphasized the importance of this move, citing it as critical for the financial sustainability of New Zealand's racing industry. "This legislation will enhance the long-term sustainability of New Zealand's racing industry by making TAB NZ the exclusive provider for betting both on land and online," Peters explained.
A core component of the proposal is the protection of consumers from illegal offshore betting sites. Peters argued that such sites undermine the local market and pose risks to Kiwi bettors. By consolidating operations under TAB NZ, the government hopes to retain revenue within New Zealand, ensuring that funds benefit local communities and stakeholders.
TAB NZ chief executive Nick Roberts hailed the move, estimating that New Zealanders lose NZ$180 million annually to offshore operators. "Retaining this money will not only maximize funding for communities but also ensure betting occurs in a safe and regulated environment," Roberts said.
In addition to the monopoly expansion, the bill includes several significant amendments:
The legislation has been referred to the Governance and Administration Committee for further evaluation.
TAB NZ's 25-year partnership with Entain is set to benefit from these changes. Once the legislation takes effect, TAB NZ will receive a one-off payment of NZ$100 million from Entain. Over the partnership's duration, additional payments and increased revenue shares are expected to inject an estimated NZ$1 billion into New Zealand's racing and sports sectors.
Roberts highlighted Entain's contributions since the partnership began, noting the implementation of harm minimization tools and modernized betting options. "This partnership, coupled with the legislative amendments, will materially boost funding outcomes for the racing industry and sporting bodies," Roberts said.
The proposal coincides with New Zealand's plans to regulate online casinos. The government intends to introduce legislation in 2025, with the licensing process commencing in early 2026. A total of 15 licenses will be available, with prominent operators like SkyCity, Bet365, and 888 already expressing interest.
The expanded monopoly and forthcoming online casino regulations signal a transformative period for New Zealand's gambling landscape. By retaining revenue domestically and prioritizing consumer safety, the government aims to bolster the racing industry and create a safer, more sustainable betting environment for Kiwis.
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