Entain deal approved and Cabinet agrees in principle to TAB online betting monopoly

The TAB will join Entain in a 25-year partnership and Cabinet has approved in principle to extend its betting monopoly online in what Minister for Racing Kieran McAnulty describes as one of the most significant days in New Zealand racing history.

In approving the deal with the UK betting company, McAnulty said it would deliver at least $900 million in guaranteed funding for the industry over the next five years.

“I’m confident this agreement will help secure a solid future for the racing industry and sports.”

The agreement provides an upfront payment of $150 million and there will be a 50% revenue share from day-one with guaranteed payments of at least $150 million per year for the first five years.

“This partnership will also allow TAB NZ to use Entain’s expertise and economies of scale to make necessary upgrades and invest extensively in infrastructure and technology.”

McAnulty said the partnership would arrest falling revenues for racing and provide certainty over the coming years.

“Our racing industry is worth $1.6 billion to the economy and directly employs 14,000 New Zealanders. It’s reliant on TAB NZ distributions, and if they were allowed to fall that would hit the industry hard and see jobs and revenue lost.

“TAB NZ has been facing increasing financial challenges over recent years and was facing an uncertain future, largely due to competition from offshore gambling websites.”

Kieran McAnulty … Giving the TAB a betting monopoly online will open a significant new revenue source for local racing and sport.Online betting monoploy

McAnulty revealed Cabinet had decided an in-principle agreement to extend TAB NZ’s monopoly for sports and racing betting to the online environment, subject to further work being done.

“The TAB was set up as a monopoly to fund New Zealand racing and sports. But the onset of unregulated online gambling changed the game and our racing and sports industry has been losing money ever since.

“Regulating this environment offers a significant new revenue source for local racing and sport, while also addressing the inherent risks in unregulated online gambling.

“By prohibiting online gambling outside of the TAB the Government can place greater controls over the betting environment. We would expect to also see much more money allocated to harm minimisation, a fairer deal for Kiwi punters and sports codes and a greater focus on animal welfare,” McAnulty said.

Ominous warning

On animal welfare, McAnulty released the Racing Integrity Board’s report into the future of greyhound racing, delivering an ominous warning.

“It is clear to me that the status quo is no longer viable and we are faced with two options: continue under strict conditions or closure.

“I will continue to progress this issue over the coming months, but unfortunately the delay has meant I’ve likely run out time to bring a decision before Cabinet before the election.

“While I appreciate the frustration with the delay, I have instructed the Racing Integrity Board to continue working closely with Greyhound Racing New Zealand throughout the interim period to ensure animal welfare is prioritised and improvements made.”

* Entain will take over the day-to-day running of much of TAB NZ’s operations from June 1.