New Legislation to Strengthen TAB NZ’s Position in Racing and Sports Betting
The New Zealand government has introduced a Bill to amend the Racing Industry Act 2020 to ensure the long term sustainability of the racing industry. The legislation will extend TAB NZ’s monopoly to include sports and racing online betting to counter the growing threat from offshore operators.
TAB NZ’s New Role
The amendment designates TAB NZ as New Zealand’s sole provider of sports and racing betting, both land-based and online. Currently, TAB NZ provides 90 percent of the revenue for the racing industry, which contributes billions to the national economy and employs over 13,500 people: “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,” said Racing Minister Winston Peters.
The growing presence of offshore online betting operators has raised concerns about its impact on TAB NZ. “Growing competition from offshore online betting operators poses a significant threat to the TAB NZ model,” Mr. Peters noted. The Bill aims to modernize the industry’s approach to sports betting, ensuring its financial sustainability. This change aligns with the Coalition Government’s Q4 Action Plan for the racing industry.
More Oversight and Regulation
The Bill introduces new oversight powers for the Minister to request information from TAB NZ and enforce regulations prohibiting other operators. Winston Peters explained: “These oversight tools will ensure that TAB NZ can continue to deliver value for consumers and the racing industry and to ensure the ongoing viability of the industry.”
Other provisions in the legislation include regulation-making powers for harm prevention and minimization, as well as consumer protection measures. Additionally, the Point of Consumption Charge will be removed, streamlining the regulatory framework.
The Bill has been referred to the Governance and Administration Committee, where it will undergo a select committee process for further consideration.
