New Zealand is expanding TAB NZ’s monopoly to include both land-based and online sports betting. As part of amendments to the Racing Industry Act 2020, these reforms aim to safeguard the future of the country’s racing sector and reduce competition from offshore online gambling sites in New Zealand.
Spearheaded by Racing Minister Winston Peters, the move is designed to retain betting revenues within New Zealand, strengthen consumer protections, and modernise the betting experience.
Key Legislative Changes
Consolidating TAB NZ’s Role
The amendments establish TAB NZ as the sole operator of sports betting in New Zealand, consolidating its control over all wagering activities. By doing so, the government ensures that betting revenues remain within the country and are reinvested in local industries. Minister Peters explained that this change modernises TAB NZ’s role to align with the digital era, addressing the increasing shift towards online gambling platforms.
Stronger Regulation and Consumer Protection
The updated legislation introduces stricter regulatory measures. Government ministers now have greater authority to demand transparency and accountability from TAB NZ, ensuring that operations align with national interests. Offshore operators, which previously benefited from lower taxes and minimal restrictions, will now face tighter regulations, including removing their point-of-consumption tax advantage.
Consumer protection is also a central focus of the reforms. The bill incorporates harm minimisation measures to create a safer betting environment, prioritising responsible gambling practices. These protections include tools to help players manage their spending and prevent gambling-related harm, a critical step in addressing the risks associated with an expanded monopoly.
Partnership with Entain
A key component of these reforms is the partnership between TAB NZ and global betting operator Entain, formalised in March 2023. As part of the agreement, Entain committed an upfront payment of NZ$100 million to TAB NZ and additional revenue-sharing over the next 25 years. This partnership taps into Entain’s technology and expertise to upgrade TAB NZ’s offerings, including advanced harm reduction tools and modernised betting platforms.
Why the Changes Are Necessary
Each year, New Zealanders lose approximately NZ$180 million to offshore betting operators, draining the local economy and leaving these funds untaxed. By expanding TAB NZ’s monopoly, the government aims to redirect these revenues back into the country, benefiting local projects and communities.
TAB NZ already plays a crucial role in the economy, accounting for 90% of the total income generated by New Zealand’s horseracing industry. The sector employs over 13,000 people and relies heavily on TAB NZ’s contributions to sustain jobs, grassroots activities, and infrastructure. The government views the expanded monopoly as essential to ensuring the industry’s long-term survival.
Benefits for the Racing Industry
The reforms aim to secure the financial stability of New Zealand’s racing sector, which plays a significant role in the country’s economy. By keeping betting revenues within the country, TAB NZ can continue funding local sports leagues, community programs, and infrastructure development.
Minister Peters emphasised that the changes are a coalition effort to protect the racing and betting industries from external competition, ensuring they remain viable for future generations. The strengthened TAB NZ monopoly is expected to provide a stable revenue stream for the industry, helping it navigate the challenges of an increasingly competitive global betting market.
Industry and Public Reactions
TAB NZ CEO Nick Roberts hailed the reforms as a “positive outcome” for New Zealand. He highlighted the broader benefits, including increased community funding, improved regulatory oversight, and the adoption of advanced harm-reduction technologies. Roberts also praised the timing of the changes, which align with Entain’s launch of new betting apps and responsible gambling tools.
While many within the racing industry have welcomed the amendments, critics have raised concerns about the potential downsides of an expanded monopoly. Some argue that limiting competition could stifle innovation and reduce the quality of services to consumers. The government will need to address these concerns to maintain public confidence in the reforms.
Implications for the Future
The expanded TAB NZ monopoly, combined with Entain’s investment, is expected to modernise New Zealand’s betting industry while ensuring that revenues stay within the country. This approach prioritises the needs of local communities and strengthens the racing sector’s financial foundation.
However, the lack of competition poses potential risks. Without external challengers, TAB NZ may face less pressure to innovate or improve its services over time. Maintaining a balance between regulation and fostering a dynamic market will be crucial to the long-term success of these reforms.
Looking ahead, New Zealand’s decision to strengthen TAB NZ’s position could also serve as preparation for broader changes in the gambling industry. The government plans to open the online casino market to outside operators in 2026, and a fortified TAB NZ may be better equipped to compete when the market expands.
