In addition to a new bill that will see greyhound racing banned in the country, New Zealand’s government has introduced a significant legislative change to secure the future of its racing industry. The proposed amendments to the Racing Industry Act 2020 will make TAB New Zealand (TAB NZ) the sole provider for sports and racing betting, both in-person and online. Racing Minister Winston Peters emphasized that the move is crucial to sustaining the industry’s financial health and competitiveness against offshore operators.

“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 remarked, according to The New Zealand Herald.

The changes also come with significant financial benefits. Entain, TAB NZ’s strategic partner, is set to provide an additional $100 million to the racing industry contingent on the legislation’s approval.

Addressing Offshore Competition

The legislation specifically targets offshore operators, which Peters identified as a growing threat to TAB NZ’s business model. The emergence of foreign betting platforms has led to substantial financial losses for New Zealand’s racing and sports betting industries, with Kiwis reportedly spending $180 million annually on these external sites. These platforms, Peters noted, often contribute little or nothing to the local economy.

TAB NZ Chief Executive Nick Roberts praised the initiative, stating, “This is a positive outcome which will have national impact. Retaining this money in New Zealand will not only maximize funding to our communities instead of providing profits to foreign companies, but also ensure Kiwis can bet in a safe and regulated environment.”

Roberts highlighted the legislation’s potential to deliver significant benefits, including an estimated $1 billion in additional funding to stakeholders during TAB NZ’s ongoing 25-year partnership with Entain.

Enhanced Oversight and Industry Safeguards

Beyond granting exclusivity to TAB NZ, the bill introduces a range of new measures designed to support the industry’s long-term success. These include:

  • Regulatory Oversight: The Minister now has expanded powers to seek information from TAB NZ, ensuring transparency and accountability.
  • Harm Minimization: New tools for consumer protection and harm prevention are part of the reforms, reinforcing the government’s commitment to responsible gambling.
  • Eliminating the Point of Consumption Charge: The legislation also removes this charge, further streamlining TAB NZ’s operations.

Roberts underscored the value of these updates, pointing out how Entain has already implemented world-class harm minimization features through TAB NZ. Additionally, he noted the inclusion of innovative betting options across Kiwi-centric brands like TAB and Betcha, enhancing the experience for local punters.

A Historic Boost for the Racing Industry

The TAB’s role as New Zealand’s sole betting operator dates back to 1950, but the rise of offshore competitors over the last 15 years has eroded its market dominance. This legislative move serves as a “reset” for TAB NZ, ensuring its competitiveness in a rapidly evolving global betting environment.

In addition to the upfront $100 million payment, the partnership with Entain is expected to provide increased revenue shares and additional financial contributions throughout the 25-year agreement. These funds will be directed toward the racing industry, sporting bodies, and community initiatives, creating a sustainable ecosystem for all stakeholders.

The legislation will now proceed to the Governance and Administration Committee for a select committee review. If enacted, it will mark a significant milestone in preserving New Zealand’s racing heritage while modernizing its betting framework to compete in today’s sports wagering market.

Greyhound Racing Ban

In related news, citing an “unacceptably high” rate of injuries, the New Zealand government introduced a bill on Tuesday, Dec. 12, 2024, that will ban greyhound racing. The industry will reportedly be phased out over the next 20 months, allowing for time to rehome the racing dogs and the transition of jobs.

Racing Minister Winston Peters, who is also NZ’s deputy prime minister, said in the Dec 10 statement that the bill will be “passed under urgency to prevent the unnecessary killing of racing dogs.” According to local media, in 2021 alone, there were 232 racetrack fatalities and 900 injuries to racing dogs, as reported by the BBC.

The US, UK and Australia are the only other countries where greyhound racing is allowed.