New Zealand racing bill amendment enforced, TAB monopoly extended online
The New Zealand government has placed into force legislation that will see TAB NZ become the sole legal provider of online sports and racing betting in the country.
The legislation received Royal Assent and came into force on 28 June, bringing into law new regulations which a number of politicians feel could provide a major boost to the nation’s betting industry.
Amendments to the Racing Industry Act 2020 were approved last week by the six parties represented in NZ’s parliament.
TAB NZ monopoly strengthened as igaming liberalisation nears
These have made it illegal for offshore operators to accept bets and introduced stronger powers to prevent gambling harms. Grey market competition is heating up and in May H2 Gambling Capital estimated just 10% of online gaming revenue was generated onshore.
TAB NZ’s sports betting monopoly will be complemented by a liberalised, though restricted, online casino market which is due to launch in 2026. So far the likes of SkyCity, TAB NZ, Grand Casino Dunedin, Christchurch Casino, Class 4 societies, 888, Bet365, SpinBet, Spin City and Super Group have shown an interest in entering the iGaming market once it opens for business.
Racing Minister Winston Peters said in a government statement last week that 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.
‘If an overseas company is offering you bets, they are breaking the law’
The Department of Internal Affairs acts as New Zealand’s gambling regulator and its director of gambling Vicki Scott gave details on how bettors should respond to illegal operators.
“We encourage gamblers based in New Zealand to be aware of the risks of placing sports or racing bets with providers other than the TAB and Betcha brands,” Scott said. “If an overseas company is offering you these bets, they are breaking the law here.
“Gamblers should be extremely cautious of those operators, who may be based in jurisdictions with minimal consumer safeguards in place. They might lack adequate measures to address gambling harm and may not return unspent credits or even pay out on large wins.”
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 last week, Green Party member Steve Abel said an estimated $185 million was expatriated 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 includes 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 who approved the amended Racing Industry Act. Writing on his LinkedIn page 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.”