Entain, the parent company of Ladbrokes and Neds, has set its sights on expanding its footprint in New Zealand’s online casino industry. The company is preparing to bid for up to three online casino licenses when New Zealand’s government opens applications later this year. The strategic move aligns with Entain’s long-term goal of becoming the dominant operator in the market, offering a complete range of services that include sports betting, racing, and online casino games.

Entain Pursues Growth in New Zealand’s Emerging Online Casino Market

Andrew Vouris, who took the helm of Entain’s Australian and New Zealand operations in August, sees this as a critical opportunity. “We’re going to be the only operator in the market that’s able to offer sports, racing, and potentially casino. That is massive,” Vouris stated, as reported by Australian Finacial Review (AFR). Entain’s current success in New Zealand, where the company operates as the exclusive license holder for online sports and racing betting, is evident from its impressive 28% year-on-year growth.

This expansion into online casinos is set to coincide with the government’s plan to issue 15 online casino licenses by December 2026. Vouris expressed confidence that Entain’s established presence and experience, bolstered by its international portfolio of brands like BetMGM and PartyCasino, positions the company well for success. By acquiring multiple licenses, Entain plans to leverage its existing customer base and expand its product offerings to further strengthen its position in New Zealand.

While Entain eyes new growth opportunities in New Zealand, the company is also adjusting its strategy in Australia. In a notable shift, Vouris confirmed that Entain has abandoned its previous plans to challenge Tabcorp’s exclusive rights to operate in New South Wales pubs. This change follows a costly and controversial move in 2023 to install themed lounges in pubs, which was met with legal action from Tabcorp.

The initiative, which cost Entain around AU$27 million, aimed to increase the company’s market share in the retail space by promoting its sports betting apps in select Australian pubs. However, Vouris admitted that the strategy was ultimately misguided, stating, “We probably should have pulled out of that strategy sooner.” Instead of pursuing physical expansions in pubs, Entain now plans to double down on improving its online offerings to better compete with market leaders Sportsbet and Tabcorp.

Entain intends to focus on refining the online betting experience for customers who already enjoy the company’s racing products but might be looking elsewhere for sports betting. “I’m sure there have been customers of ours in Ladbrokes and Neds that love our racing product but go elsewhere for sport. We want to change that,” Vouris said, signaling the company’s renewed focus on strengthening its digital platforms.

Challenges and Opportunities Ahead

While Entain’s expansion into New Zealand’s online casino market is poised for success, the company faces challenges on multiple fronts. In addition to the competitive pressure from other operators like SkyCity Entertainment Group, which has already expressed interest in becoming the leading player in New Zealand’s online gaming space, Entain is also navigating regulatory complexities.

Vouris’ comments underscore the significance of securing online casino licenses as part of Entain’s broader strategic vision for the region. “We’re going to be the only operator in the market that’s able to offer sports, racing, and potentially casino. That is massive,” he remarked, underscoring the company’s intention to dominate the online gambling landscape in New Zealand.

In Australia, the online gambling sector is undergoing consolidation due to external challenges, such as increased taxes and more stringent regulations. Despite these obstacles, Entain remains determined to grow its share of the market by investing in its online sports betting brands. However, the company’s future in the Australian market could be affected by external pressures, including the legal actions related to AUSTRAC’s investigation into Entain’s anti-money laundering practices.