New Zealand amends horseracing bill to expand TAB NZ’s monopoly to online
Changes introduced by racing minister Winston Peters will expand the operator’s land-based monopoly to online in a bid to improve “long-term sustainability” of racing sector
The New Zealand government has announced changes to its horseracing legislation which it hopes will strengthen TAB NZ’s monopoly and further bolster the racing industry.
Amendments to the country’s Racing Industry Act 2020, introduced by racing minister Winston Peters, will see TAB NZ become New Zealand’s sole provider of sports betting across both land-based and online operations.
Changes in the bill include more visibility from ministers to seek information from TAB NZ, and enhanced regulatory oversight regarding the banning of other operators.
The new legislation will also remove the point of consumption charge applied to bets taken by offshore operators, as well as introducing regulation regarding consumer protection and harm prevention and minimisation.
The new bill is set to be referred to New Zealand’s Governance and Administration Committee to undergo a select committee process.
TAB NZ was first established in 1950. It currently employs over 13,000 people and provides 90% of the revenue generated by the New Zealand horseracing industry.
In March 2023, TAB NZ secured a 25-year partnership with Entain to allow the London-listed firm to power its operations in the market.
Entain runs the TAB and betcha brands in the market, although there is significant competition from operators in the grey market.
Once the bill’s changes come into effect, TAB NZ will also receive a one-off NZ$100m (£45.9m) payment from Entain, in addition to increased revenue share over the course of the pair’s 25-year strategic partnership.
Peters praised the legislative changes, claiming overseas operators posed “a significant threat” to the country’s betting industry.
He said: “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.
“Growing competition from offshore online betting operators poses a significant threat to the TAB NZ model.
“This change brings the model up to date with the current sports betting climate and will ensure the financial sustainability of the racing industry, as established in the Coalition Government’s Q4 Action Plan for New Zealand.”
TAB NZ CEO Nick Roberts described the new “legislative net” as a general benefit for the country as a whole.
He added: “This is a positive outcome which will have national impact. We estimate Kiwis lose NZ$180m annually to offshore racing and sports betting operators.
“Retaining this money in New Zealand will not only maximise funding to our communities instead of providing profits to foreign companies, but also ensure Kiwis can bet in a safe and regulated environment.”
Regarding TAB NZ’s partnership with Entain, Roberts noted: “It’s excellent timing for the legislative net as Entain is now delivering a world-class betting product to local punters.
“In a short time, Entain has introduced market-leading harm minimisation tools alongside modern betting options across two distinctively Kiwi brands – TAB and betcha.
“The legislative net will materially boost TAB NZ’s funding outcomes from the strategic partnership, providing a major boost to the racing industry and sporting bodies.”
The update to racing legislation comes after New Zealand announced it is planning to open up its online casino market to competition from foreign operators from 2026.