Expanded TAB NZ monopoly approved by New Zealand lawmakers
In a groundbreaking move, New Zealand's parliament has given the green light to legislation that makes TAB NZ the sole legal avenue for online sports and racing betting in the nation. This move extends their existing monopoly from brick-and-mortar outlets into the digital realm.
Winston Peters, the Racing Minister, hailed this as a vital step, stating that the racing industry pumps an impressive $1.9 billion into the economy and provides employment for 13,500 people across the country. He further emphasized the unique significance of racing and sports in various communities throughout New Zealand.
With the surge in online betting, Peters acknowledged the need to secure TAB NZ's betting revenue to aid in the progress of the industry. TAB NZ serves as the primary funding source for New Zealand's racing industry and contributes funds to multiple sports codes. Consequently, this legislation ensures New Zealand punters' money benefits local racing and sports instead of going abroad to commercial operators. Moreover, it establishes a fully regulated betting environment within the country.
The Bill introduces powers for regulation aimed at mitigating harm and provides a regulatory backbone to ensure consumer obligations are met. The legislation offers flexibility to respond to any future shifts in the racing and sports betting landscape.
Minister Peters assured increased ministerial and regulatory oversight to ensure TAB NZ operates with ethical integrity. If TAB NZ's performance falters, measures exist to safeguard consumers. This legislation arrives at a crucial time for the racing industry, with TAB NZ announcing the formation of an advisory committee consisting of industry leaders to foster connections and explore opportunities. Minister Peters expressed approval of the industry embracing such initiatives to foster development.
Entain, TAB NZ's operator under a 25-year partnership, views this change as a significant boost to sports and racing codes. Upon the legislation taking effect, Entain will make a payment of NZ$100 million to further solidify their commitment to the New Zealand industry and improve the fortunes of Kiwi racing participants and national sporting organizations.
Entain's managing director - New Zealand, Sam Moncur, expressed pride in building on TAB NZ's legacy of backing local racing and sport. Moncur asserts Entain's goal to offer fair, competitive odds that match those available in the competitive Australian market. Moncur expressed the operator's commitment to providing fair odds to racing and sports fans in the future.
Recently, Entain announced that Dean Shannon, CEO of Entain Australia and New Zealand, would be stepping down at the end of June. Andrew Vouris, a former Tabcorp executive, has been appointed interim CEO in his absence. Shares in Entain plc (LSE:ENT) saw a 0.31% dip earlier Friday.
The new legislation, which focuses on sports and racing betting, designates TAB NZ as the sole legal entity for online sports betting in New Zealand, aventing money from local punters from going overseas. TAB NZ's major funding for the racing industry and support for various sports codes will continue under this new digital monopoly, alongside increased ministerial and regulatory oversight for ethical integrity.
