The New Zealand parliament has passed legislation to enable TAB NZ to be the sole legal provider of online sports and racing betting in the country.
Racing Minister Winston Peters said the amendments to the Racing Industry Act 2020 will ensure the sustainability of the racing industry in New Zealand, with the bill expected to be passed into law in the coming days.
“The racing industry generates $1.9 billion for the economy and employs 13,500 people across the country,” said Minister Peters. “Racing and sports have a special place in communities throughout New Zealand. With the rapid growth in online betting, we needed to make changes to protect TAB NZ’s betting revenue to support the progress of the industry.
“TAB NZ is the core funding source for New Zealand’s racing industry and contributes vital funding to a variety of sports codes. This legislation redirects New Zealand punters’ dollars for the benefit of the racing industry and sports here, rather than overseas commercial operators. It also means all sports and racing betting in New Zealand will now be in a fully regulated environment.”
The Bill introduces regulation-making powers for harm minimisation and provides a regulatory backstop to ensure that consumer obligations are met.
The government said that this provides flexibility to adapt to any future changes in the racing and sports betting environment.
“Increased ministerial and regulatory oversight will be in place to ensure TAB NZ operates with integrity,” continued Minister Peters. “If TAB NZ’s performance does not meet expectations, action can be taken to uphold the protection of consumers.
“This legislation comes at an important time for the racing industry, with TAB NZ’s announcement of the establishment of an advisory committee of industry leaders. This will encourage connections and opportunities for TAB NZ to explore with the industry. I am supportive of the industry taking the initiative to enhance industry development.”
Entain, which operates TAB NZ under a 25-year partnership, said that the changes will provide a vital boost to sporting and racing codes.
The operator will also make a payment of NZ$100 million after the changes to the Racing Industry Act take effect, to deepen its commitment to the New Zealand industry and boost the fortunes for Kiwi racing participants and national sporting organisations.
“The payment to racing and sporting codes and ongoing benefits from the law changes plays a crucial role in supporting communities and teams across New Zealand, sitting alongside efforts from government, member participation and sponsorship,” said Entain Australia and New Zealand managing director – New Zealand Sam Moncur. “Entain is proud to be building on TAB NZ’s legacy of backing Kiwi racing and sport.
“We are also very aware of the privilege we have to provide a world-class betting experience to Kiwis. Entain, through TAB and betcha, will deliver odds as fair and competitive as a customer would find in the highly competitive Australian market. Kiwis love a fair go, and we’re committed to providing fair odds for our racing and sports fans into the future.
“We’re honoured to contribute to the future of the racing codes and play a part in keeping Kiwi sport alive and thriving,” added Moncur.
Earlier this month, Entain confirmed that Dean Shannon, CEO of Entain Australia and New Zealand, will be stepping down at the end of June. Former Tabcorp executive Andrew Vouris has been appointed interim CEO.
Shares in Entain plc (LSE:ENT) were trading 0.31 per cent lower at 897.20 pence per share in London earlier Friday.