The government of New Zealand has introduced updates to its horseracing laws, aiming to reinforce TAB NZ’s exclusive hold on the market and provide further support to the racing sector.
With changes to the nation’s Racing Industry Act of 2020, initiated by Racing Minister Winston Peters, TAB NZ will emerge as the country’s lone provider for sports betting, both offline and on the internet. Key alterations in the legislation involve increased transparency, allowing ministers to obtain more information from TAB NZ along with tighter controls on barring other betting operators.
Additionally, the amended law will do away with the point of consumption charge for bets made through overseas operators. It will also set regulations concerning consumer protection and the reduction of harm. This revised bill will be forwarded to New Zealand’s Governance and Administration Committee for a detailed committee review.
Since its inception in 1950, TAB NZ employs over 13,000 individuals and contributes to 90% of the revenue generated by New Zealand’s horseracing industry. In March 2023, TAB NZ partnered with Entain for 25 years to leverage the London-listed company’s capabilities to enhance its market operations.
Entain manages the TAB and betcha brands in the market but faces substantial competition from the grey market operators. Following the implementation of the bill’s amendments, TAB NZ is set to receive a one-time payment of NZ$100 million (£45.9 million) from Entain, along with an increased revenue share over their 25-year strategic alliance.
Minister Peters lauded the legislative measures, citing significant threats posed by foreign operators to the domestic betting industry. He stated, “This legislation is vital for the enduring viability of New Zealand’s racing sector by establishing TAB NZ as the exclusive provider for sports and race betting, both terrestrially and online. Increasing competition from foreign online betting firms seriously jeopardizes the TAB NZ framework.”
“With this legislative shift, our model will align with the contemporary sports betting environment, ensuring the racing industry’s financial stability as outlined in the Coalition Government’s Q4 Action Plan for New Zealand,” he added.
Nick Roberts, CEO of TAB NZ, regarded the legislative shift as broadly beneficial for the country. He noted, “This is a favorable resolution with nationwide implications. We estimate that Kiwis lose approximately NZ$180 million yearly to overseas racing and sports betting operations.”
“Recapturing this capital within New Zealand will not only enhance funding for local communities, instead of boosting foreign profits, but also assure that New Zealanders can gamble within a secure and regulated framework,” Roberts continued.
Regarding the venture with Entain, Roberts remarked, “The legislative adjustment comes at a prime time as Entain is delivering a top-tier betting service to local bettors.”
“In a relatively short span, Entain has introduced industry-leading harm reduction tools alongside cutting-edge betting options across two distinctive Kiwi brands – TAB and betcha,” he stated. “The regulatory framework will significantly uplift TAB NZ’s financial outcomes from our strategic partnership, giving a substantial boost to the racing industry and sports organizations.”
This legislative overhaul occurs as New Zealand reveals plans to open its online casino industry to foreign operators starting in 2026.
