Racing Minister Winston Peters introduced legislation aimed at amending the Racing Industry Act 2020 to secure TAB NZ’s exclusive rights over New Zealand’s sports and horse racing betting market. This move, announced recently, seeks to establish a TAB NZ monopoly in the sector.
Formed under the Racing Industry Act, TAB NZ took over from the Racing Industry Transition Agency (RITA), which previously managed the nation’s betting activities. The government reports that TAB NZ already accounts for a substantial 90% of revenue in New Zealand’s racing sector.
Minister Peters emphasized that expanding the monopoly to include online operations would significantly boost revenue and bolster the industry’s growth. He also highlighted that a single online operator could better shield consumers from risky offshore betting sites.
“The new law aims to ensure New Zealand’s racing industry remains viable by positioning TAB NZ as the sole provider for both physical and online sports and race betting,” Peters stated. “Increasing competition from offshore online betting services is a significant threat to TAB NZ’s setup.”
“This legislative update aligns with the current sports betting environment and is crucial for the financial health of the racing industry, supporting the coalition government’s Q4 Action Plan for New Zealand,” Peters added.
### Amendments to the Monopoly Include New Oversight
Besides the monopoly, the legislation also introduces several updates to the Act. Among these are expanded authority for the minister to acquire information from TAB NZ and regulatory provisions to block other operators.
The legislation sets forth the creation of regulations intended to prevent and minimize harm, alongside consumer protection measures. Additionally, it proposes the removal of the consumption charge.
“These regulatory tools will allow TAB NZ to continue providing value to both consumers and the racing industry, securing the industry’s ongoing viability,” Peters commented.
The bill will now undergo scrutiny by the Governance and Administration Committee through a select committee process.
### TAB NZ’s Positive Response to Monopoly Proposal
TAB NZ has expressed full support for the proposed legislative changes, with CEO Nick Roberts describing the outcome as beneficial nationwide.
Roberts stated, “We estimate New Zealanders lose NZ$180 million annually to offshore betting operators. Retaining these funds domestically not only maximizes community funding but also ensures a safe and regulated betting environment.”
Roberts also noted that if the amendment passes, it could lead to an additional $1 billion for stakeholders within the term of its strategic partnership with Entain. This follows a 25-year deal TAB NZ secured with Entain in March last year.
Once enacted, Entain will provide TAB NZ with a one-time payment of $100 million, along with enhanced revenue shares and additional payments over the ongoing partnership period.
“As Entain implements a high-quality betting product for New Zealanders, the legislative changes are timely,” Roberts mentioned. “Entain’s rapid deployment of advanced harm minimization tools and contemporary betting options through TAB and betcha has been notable.”
“The legislative modifications will substantially enhance TAB NZ’s funding from the strategic partnership, significantly benefiting the racing industry and sports organizations,” Roberts concluded.