The bill, proposed and announced by Racing Minister Winston Peters, will amend the Racing Industry Act 2020. This will effectively grant TAB NZ a monopoly over the entire sports and racing betting market in New Zealand.
TAB NZ was established under the Racing Industry Act. It replaced the Racing Industry Transition Agency (RITA), which previously regulated the country's betting activities. According to the government, TAB NZ now accounts for 90% of the revenue from the New Zealand racing industry.
Minister Peters stated that extending the current monopoly model to online operations would increase revenue and support the wider industry. He added that establishing TAB NZ as the sole online operator would help protect consumers from illegal offshore sites.
Peters said: "This legislation will make TAB NZ the sole provider of land-based and online sports and racing betting in New Zealand, thereby enhancing the long-term sustainability of the New Zealand racing industry."
"The increasingly fierce competition from offshore online betting operators poses a significant threat to the TAB NZ model.
"This change keeps the model in sync with the current sports betting environment. It will ensure the financial sustainability of the racing industry, as determined by the coalition government's fourth quarter action plan for New Zealand."
The Monopoly Amendment also includes regulatory reforms
In addition to market monopoly, the bill also covers other amendments to the act. These include granting new powers to the minister to seek information from TAB NZ and regulatory oversight to prohibit other operators.
The bill also stipulates the creation of regulations for the prevention and reduction of harm and the protection of consumers. Additionally, the bill will eliminate consumer charge points.
Peters said: "These oversight tools will ensure that TAB NZ can continue to provide value to consumers and the racing industry and ensure the industry's ongoing viability."
The bill will now be submitted to the Governance and Administration Committee for specialized committee review.
TAB NZ welcomes the monopoly proposal
TAB NZ has responded positively to the planned legislative changes, with CEO Nick Roberts claiming it heralds a "positive outcome" nationwide.
"We estimate that New Zealanders lose NZ$180 million (83 million pounds/100 million euros/106 million US dollars) annually to offshore racing and sports betting operators," said Roberts. "Keeping these funds in New Zealand not only maximizes funding for our communities rather than profits for foreign companies but also ensures that New Zealanders can bet in a safe and regulated environment."
Roberts added that if the amendment is approved, it will bring an additional US$1 billion in benefits to stakeholders during the remaining term of the strategic partnership with Entain. In March last year, TAB NZ entered into a 25-year betting agreement with Entain.
Following the amendment's enactment, TAB NZ will receive a one-time payment of US$100 million from Entain. This will be in addition to the increased share of revenue and other payments during the remainder of the partnership.
"This is an excellent time for the legislative network, as Entain is currently offering world-class betting products to local punters," said Roberts. "In a short time, Entain has launched market-leading harm minimization tools and two unique New Zealand brands—TAB and Betcha's modern betting options."
"The legislative network will significantly enhance the financial outcomes TAB NZ gains from the strategic partnership. It will provide a significant boost to the racing and sports institutions."
Online casinos to launch in 2026
In July this year, the New Zealand government first announced the regulation of online casinos, followed by the introduction of this bill.
The government hopes to legislate a licensing system by 2025. The bill will be proposed in April 2025 and enacted by the end of the year. The review and auction process will begin in February 2026, and suppliers will start trading in April 2026.
A total of 15 licenses will be issued to online operators. According to a cabinet document submitted on September 9, several existing operators have expressed interest in applying for online licenses.
This group includes SkyCity, TAB NZ, Grand Casino Dunedin, Christchurch Casino, Class 4 society, 888, Bet365, SpinBet, Spin City, and Super Group (including Betway).
