A bill to amend New Zealand’s Racing Industry Act 2020 and extend TAB’s monopoly has passed third reading, essentially setting up Entain for market dominance.
The updated framework mandates that TAB NZ will extend its land-based monopoly on betting to online channels as well, making it the only legal platform in New Zealand that can be used for horse racing and online sports wagering.
“No person other than TAB NZ may offer racing betting, sports betting, or other racing or sports betting (or any combination of those forms of betting) to a person in New Zealand,” the amendments read.
Introduced at the end of 2024, the new framework was given urgent priority by policymakers and skipped the select committee stage, passing third reading on 25 June and now awaiting a Royal Assent sign off by Governor-General Cindy Kiro.
Although a Crown-established statutory body, TAB NZ is not state-owned. It outsources its commercial betting and broadcasting services to UK gambling conglomerate Entain.
Under a 25-year lease effective since June 2023, TAB NZ has franchised all of its management rights to Entain, which in turn runs the TAB app, retail outlets, online services, and Trackside TV – TAB’s horse racing and sports broadcast network. In return, Entain receives a percentage of TAB NZ’s betting revenue.
If the bill successfully passes through Kiro’s hands and extends TAB’s monopoly to online betting, it will eliminate all wagering competition.
Some of the drawbacks from that could include stifling market innovation, in addition to limiting pricing and product choice for consumers. The government, however, has proposed legitimate justification behind the move, most notably relating to market safety.
Because of the increased market freedoms that TAB will enjoy, it will also be subjected to increased regulatory controls.
The amendments dictate wider Ministry supervision, allowing for written requests on any relevant information at any time, which TAB NZ is obliged to comply with.
Moreover, the government can directly intervene to impose additional consumer protection measures, review TAB’s self-exclusion policy effectiveness, and request information on specific players.
Another core development highlighted by policymakers is the anticipated increase in New Zealand’s racing industry coffers through TAB by retaining gambling revenue within the country.
Steve Abel, a Green MP, said: “I think around $185 million was being repatriated offshore under the present state of affairs, and this bill will ensure that more of that money is retained by New Zealand.”
Perhaps the biggest argument in favour of a TAB/Entain monopoly is a direct hit on the black market.
However, previous examples in Europe, such as the current monopoly model in Norway, have alluded to an increase in black market exposure when customers are purposefully limited in their choice.
Don’t forget to subscribe to our Telegram channel!
