Global gambling giant Entain will pay up to 100 million New Zealand dollars (approximately 60.6 million US dollars) to Tab NZ to fulfill its long-term strategic cooperation agreement signed in 2023. This payment coincides with the official approval of the amendment to the "2003 Racing Industry Act", which extends Tab NZ's gambling monopoly in New Zealand from offline to online, laying a practical monopoly foundation for Entain in this market.
Tab NZ is the only legal horse racing and sports betting agency in New Zealand. This legislative amendment will force offshore gambling companies to completely exit the New Zealand market, clearing competitive obstacles for Entain. Entain announced as early as June 2023 that it would establish a 25-year strategic partnership with Tab NZ, committing to contribute at least 1 billion NZD in gross profit sharing and additional funds to Tab NZ in the first five years.
Sam Moncur, Managing Director of Entain Australasia, stated that the company is honored to help develop the sports and horse racing industry in New Zealand through this cooperation: "This strategic relationship not only provides sustainable funding for events but also further consolidates our role in community building."
Although New Zealand has not yet formally regulated online casinos, it is widely expected that the future will promote the legalization and licensing of iGaming. This substantial payment by Entain is also seen as an important layout for seizing the initiative in the future iGaming market.
According to the agreement, Entain will also make multiple payments gradually. As the market moves from a gray area to legal regulation, Entain's binding cooperation with Tab NZ may further expand its dominant position in the New Zealand gambling industry.
