New Zealand Moves to Strengthen TAB NZ Monopoly Amid Online Expansion
New Zealand’s Racing Minister Winston Peters has introduced legislation to expand TAB NZ’s monopoly to include online sports and race betting. The bill, which amends the Racing Industry Act 2020, seeks to modernize the country’s betting framework while ensuring the long-term financial sustainability of its racing industry.
Currently, TAB NZ generates 90% of the revenue for New Zealand’s racing sector, primarily through land-based sports betting and horse racing wagering. By extending this monopoly to the online market, the government of New Zealand aims to counteract the increasing threat posed by offshore operators, which often divert revenue and evade local regulations.
Oversight and Consumer Protection Measures
Beyond extending TAB NZ’s monopoly, the legislation introduces several oversight and regulatory measures. These include granting the minister authority to request operational information from TAB NZ, establishing harm prevention strategies, and implementing consumer protection regulations. Additionally, the proposed changes would eliminate the point of consumption charge, reducing operational costs for TAB NZ.
Peters stressed the importance of the proposed changes, 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."
The bill has been referred to the Governance and Administration Committee, where it will undergo a thorough review process, including public consultation and input from industry stakeholders.
Positive Outcomes for New Zealand’s Racing Industry
TAB NZ CEO Nick Roberts welcomed the proposal, highlighting its potential to retain NZ$180 million in annual revenue currently lost to offshore casino operators.
Roberts noted that retaining this money in New Zealand will not only maximize funding to local communities instead of providing profits to foreign companies, but will also create safe and regulated gambling environment for NY residents.
In addition to this, Roberts emphasized the financial benefits expected from the partnership with Entain, a global betting leader. The agreement includes a one-time payment of NZ$100 million to TAB NZ upon the amendment’s approval and an estimated NZ$1 billion in additional revenue for stakeholders over the partnership’s remaining term.
Entain’s contributions to the partnership have been transformative, introducing modern betting options and market-leading harm minimization tools. The collaboration with Entain ensures TAB NZ remains competitive while supporting community-focused initiatives.
With the proposed legislation and the backing of key industry players, New Zealand’s racing industry stands to benefit significantly. The amendments aim to secure the industry’s financial future while providing players with a safe, regulated betting environment.
Overhaul of NZ Casino Industry
The NZ government plans to regulate its online casino industry with the Online Gambling Bill, introducing a licensing framework to prioritize consumer safety and harm prevention.
Set to be introduced in Parliament in 2025 and enacted by 2026, the bill would allow up to 15 licensed operators to offer services under strict regulations. Internal Affairs Minister Brooke van Velden highlighted the need to redirect users from unregulated offshore platforms to safer, licensed operators.
Key regulations include mandatory age verification, an outright ban on ads targeting minors, and robust harm minimization measures. Non-compliance will result in severe penalties, with fines reaching up to NZ$5 million. The licensing system will also streamline accountability and tackle issues like delayed payouts and poor consumer protection on offshore platforms.
The government aims to implement this through a competitive auction system, awarding licenses by 2026. Licensed operators will need to meet stringent compliance standards, ensuring transparency and responsible gambling.
By limiting licenses to 15, the government intends to maintain effective oversight while capturing over 90% of potential tax revenue. This framework is designed not to promote gambling but to create a safer environment for New Zealanders already participating in online gambling.
SOURCE: “New Zealand Proposes Expanding TAB NZ Monopoly to Online Betting”, casinonewsdaily.com, December 10, 2024.