New Zealand racing bill amendment extends TAB monopoly online

A law change in New Zealand will see TAB NZ become the sole legal provider of online sports and racing betting in the country. A number of politicians have said this could provide a major boost to the nation’s betting industry.

Amendments to the Racing Industry Act 2020 were approved on Tuesday by the six parties represented in NZ’s parliament.

These have made it illegal for offshore operators to accept bets, and introduced stronger powers to prevent gambling harms. The bill will come into force later this month.

Racing Minister Winston Peters said in a government statement on Wednesday the law change will boost the sustainability of New Zealand’s racing sector, which generates NZ$1.9 billion a year for the economy and employs 13,500 people.

Racing legislation delayed by committees

With TAB already accounting for 90% of racing betting revenue in New Zealand, the law change will extend its monopoly beyond its current land-based agreement, to include the online industry.

The legislation was first introduced in December last year, but was delayed as it passed through numerous committees and faced opposition from politicians.

Peters believes the law change will help to protect TAB from the illegal market, while also encouraging growth in New Zealand’s racing sector.

“Racing and sports have a special place in communities throughout New Zealand,” Peters said. “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.”

Hundreds of millions lost to black market racing operators in New Zealand

In a parliamentary debate held on Tuesday, Green Party member Steve Abel said an estimated $185 million was repatriated offshore. This is via online racing betting.

“This bill will ensure that more of that money is retained by New Zealand,” Abel said.

Tim Costley of the National Party urged the government to consider alternative betting solutions in future amendments. This including virtual and fantasy sports.

“We’ve got students here from Kaingaroa School today in the gallery. It’s great to see them. I’m sure that will be something they’ll be interested in in the future. So we should keep eye open for that. But for now, I commend the bill to the House,” he said.

Celia Wade-Brown, of the Greens, said it was “unfortunate” the bill had been slowed down during the committee stages. She said it should have been given more urgency.

What does New Zealand’s racing bill amendment entail?

Under the amended law, new ministerial powers will require TAB NZ to provide more information on its performance.

Existing harm minimisation powers for TAB’s retail venues will be extended to its online operations. This will help the operator understand when it should intervene when an online bettor displays problematic behaviours.

“This intends to ensure that TAB NZ cannot restrict otherwise lawful customers from accessing its online products without an appropriate reason, such as having an identified gambling problem,” the government said.

The bill also appoints the Department of Internal Affairs as the regulator for TAB’s online monopoly on an interim basis.

Once an online casino regulator is established under new laws that will support an open iGaming market, they will take over the role of regulating TAB’s monopoly.

New Zealand is in the process of preparing a law and legal framework to support a liberalised igaming market. This is expected to launch in 2026. Up to 15 licences will be granted for commercial operators.

Entain to inject NZ$100 million into New Zealand

TAB partner Entain has committed to injecting NZ$100 million into the country’s racing sector after the amendments come into effect. This will demonstrate its commitment to the New Zealand gambling sector.

TAB NZ CEO Nick Roberts congratulated the MPs that approved the amended Racing Industry Act. Writing on his LinkedIn Roberts said: “[The] Kiwis are better for it.”

Entain penned a 25-year partnership with TAB NZ in March 2023. This provided it with wagering and broadcast functions in New Zealand, as well as funding.

Entain’s MD for Australia and New Zealand Sam Moncur said Entain was proud to be building on TAB NZ’s legacy.

“We’re honoured to contribute to the future of the racing codes, And [also to] play a part in keeping Kiwi sport alive and thriving.”