Filed by racing minister Winston Peters and announced over the weekend, the legislation would amend the Racing Industry Act 2020. This would effectively grant a TAB NZ monopoly across the entire sports and horse racing betting market in New Zealand.
TAB NZ was established under the Racing Industry Act. It replaced the Racing Industry Transition Agency (RITA), which previously oversaw the country’s betting activity. According to the government, TAB NZA already accounts for 90% of revenue within the New Zealand racing industry.
Minister Peters said that extending the current monopoly model to online operations would increase revenue and support the wider industry. He added that establishing TAB NZ as the sole online operator would help protect consumers from illegal offshore sites.
“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,” Peters said.
“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. It will ensure the financial sustainability of the racing industry, as established in the coalition government’s Q4 Action Plan for New Zealand.”
Monopoly amendment also include oversight changes
Aside from a market monopoly, the legislation also covers other amendments to the Act. These include new powers for the minister to seek information from TAB NZ and regulatory oversight to prohibit other operators.
Also in the legislation are regulation-making powers for harm prevention and minimisation, as well as consumer protection. In addition, the bill would remove the point of consumption charge.
“These oversight tools will ensure that TAB NZ can continue to deliver value for consumers and the racing industry, and to ensure that the ongoing viability of the industry,” Peters said.
The bill will now be referred to the Governance and Administration Committee for a select committee process.
TAB NZ welcomes monopoly proposal
TAB NZ has responded positively to the planned legislative changes, with chief executive Nick Roberts claiming heralding a “positive outcome” on a national scale.
“We estimate Kiwis lose NZ$180 million (£83 million/€100 million/US$106 million) annually to offshore racing and sports betting operators,” Roberts said. “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.”
Roberts added that the amendment – if approved – would deliver an extra $1 billion to stakeholders over the remaining term of its strategic partnership with Entain. TAB NZ struck up a 25-year betting deal with Entain in March last year.
TAB NZ will receive a one-off payment of $100 million from Entain once the amendment is in effect. This will be in addition to increased revenue share and other payments over the remainder of the partnership.
“It’s excellent timing for the legislative net as Entain is now delivering a world-class betting product to local punters,” Roberts said. “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.”
Original article: https://igamingbusiness.com/sports-betting/sports-betting-regulation/new-zealand-tab-nz-monopoly-online/
