New Zealand’s lawmakers are locked in debate over a bill that could reshape the country’s online betting landscape. If passed, the legislation would grant TAB New Zealand a monopoly over online racing and sports betting. Proponents argue it’s a way to keep gambling revenue within the country, while critics fear it could backfire, pushing bettors toward offshore platforms.
Government Aims for Control Over Betting Revenue
The proposed changes to the Racing Industry Act 2020 would effectively shut out private online bookmakers, making TAB NZ the sole legal option. Supporters say this is a necessary move to safeguard responsible gambling and ensure revenue stays in New Zealand’s economy.
One key argument from lawmakers backing the bill is that a state-controlled system can better enforce gambling regulations. Unlike offshore platforms, TAB NZ would be required to reinvest its earnings into local racing and sports organizations.
Gambling Minister Kieran McAnulty has stressed that betting revenue plays a crucial role in funding New Zealand’s racing industry, which employs thousands of people. “This is about making sure that profits from betting are directed where they should be—into supporting New Zealand’s racing and sporting communities,” he said.
Critics Warn of Reduced Competition and Black Market Risks
Not everyone is convinced. Some industry experts believe shutting out competition could reduce innovation and lead to worse odds for bettors. Without private operators in the mix, they argue, TAB NZ would have little incentive to offer competitive payouts or improve its platform.
- The Commerce Commission, New Zealand’s watchdog for fair competition, has not yet taken a stance on the bill. Some expect that it may raise concerns, as the organization has pushed for more competition in other industries, including banking and supermarkets.
- Critics also warn that bettors frustrated by limited options might turn to black market gambling sites. These platforms often operate outside of New Zealand’s regulatory framework, making it harder to enforce responsible gambling measures.
Industry analyst Gregor Thompson highlighted this risk, saying: “That is clearly a risk and the minister has acknowledged that will likely happen, that very committed sports bettors will find a way around the law using things like cryptocurrencies.”
Entain’s Legal Troubles Raise Red Flags
Adding another layer of complexity to the debate is the controversy surrounding TAB NZ’s operating partner, Entain. The British-based gambling giant, which signed a 25-year partnership with TAB NZ in 2023, is currently facing legal scrutiny in multiple countries.
Regulators in Australia, the UK, and Turkey have all investigated Entain over alleged financial misconduct:
| Jurisdiction | Allegations | Regulatory Body |
|---|---|---|
| Australia | Anti-money laundering violations | AUSTRAC |
| United Kingdom | Financial reporting irregularities | Financial Reporting Council |
| Turkey | Bribery linked to former operations | Settled in 2023 |
With such ongoing legal battles, some lawmakers question whether Entain is the right long-term partner for TAB NZ. Racing Minister Winston Peters has been briefed on the situation, but his office has declined to comment publicly.
What’s Next for the Bill?
The bill is still in its early stages, and much depends on how lawmakers respond to concerns from both supporters and critics.
- If passed, New Zealand would become one of the few countries to enforce a state-run online betting monopoly.
- If rejected, the government may need to explore alternative ways to tax offshore bookmakers or regulate them more effectively.
For now, the debate continues, with plenty of questions still unanswered. Will limiting competition really protect New Zealand bettors, or will it drive them underground? And with Entain’s legal troubles making headlines, is TAB NZ’s monopoly already on shaky ground?
Leave a Reply