Racing act changes welcomed as Govt introduces legislative net
Racing Minister Winston Peters has announced the introduction of legislation to amend the Racing Industry Act 2020.
The change will extend TAB NZ’s current land-based exclusivity for sports and racing betting to online and comes at a time when investment into infrastructure around racing venues is crucial.
“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 and will ensure the financial sustainability of the racing industry, as established in the Coalition Government’s Q4 Action Plan for New Zealand.”
The Racing Industry Act established TAB NZ for the purposes of funding the racing industry. It provides 90 percent of the racing industry’s revenue, which generates billions of dollars for the New Zealand economy and employs over 13,500 people.
TAB New Zealand Chief Executive Nick Roberts welcomed the Government’s decision to introduce a “legislative net” granting TAB NZ the exclusive rights for online racing and sports betting in New Zealand.
“This is a positive outcome which will have national impact,” he said.
“We estimate Kiwis lose $180 million 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.”
The TAB was established as the country’s sole betting operator in 1950 but that position has been eroded by online activity since the turn of this century. Roberts said today’s announcement serves as a welcome reset.
“Critically this will deliver an additional $1 billion to our stakeholders over the remaining term of our strategic partnership with Entain,” Roberts said.
In June 2023, TAB NZ commenced a 25-year strategic partnering arrangement with sports-betting and gaming group Entain for the delivery of TAB NZ’s betting operations.
“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,” Roberts said.
TAB NZ will receive a one-off payment of $100m from Entain once the legislative net is in effect, in addition to increased revenue share and other payments over the remainder of the 25-year strategic partnership.
“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,” he said.
“TAB NZ is focused on giving Kiwi punters a world-class experience, in the safest environment, while maximising returns to our local communities nationwide. Today’s announcement is great news for racing, sport and the whole country.”
The announcement comes after a winter of disruption and just as the summer racing period starts to heat up and infrastructure around courses across the country is tested.
“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 and will ensure the financial sustainability of the racing industry, as established in the Coalition Government’s Q4 Action Plan for New Zealand.”
The Bill makes a number of other changes to support the success of TAB NZ, including new oversight powers for the Minister to seek information from TAB NZ, and regulatory oversight of the prohibition on other operators.
“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.
Other changes to the legislation include regulation-making powers for harm prevention and minimisation, and consumer protection, and removing the Point of Consumption Charge.
The Bill will be referred to the Governance and Administration Committee for a select committee process.
