“In the privatised system, money would not be recycled through national sporting organisations and would instead go to places like Gibraltar and Malta.
“However, some argue that such monopoly limits choice for consumers and can lead to inefficiencies in the markets. A lot of my reporting has been based on this issue. Some of the submissions on the bill argue that extending the monopoly online would lead to less favourable odds because of a lack of competition.
“The Commerce Commission is currently trying to increase competition in the banking and grocery sectors and they [opponents] say this is them doing the opposite and that would lead to less favourable odds or wagers for New Zealand punters,” he said.
The TAB estimates Kiwis lose $185 million a year to offshore operators, with the changes expected to retain this money.
While changes to the bill are being scrutinised at the select committee stage, TAB NZ’s operator, Entain, faces allegations of not doing enough to combat money laundering and corruption in Australia.
It’s the first time Australia’s financial crimes regulator (AUSTRAC) has brought civil penalty proceedings against a business operating in the online betting sector.
It’s suing under the same Australian laws that saw Crown pay $450m in penalties over two years in 2023 for breaching money laundering laws. Last year, Adelaide’s SkyCity was fined $63m for links to organised crime, loan sharking, and human trafficking.
The proceedings allege that Entain “did not develop and maintain a compliant anti-money laundering program and failed to identify and assess the risks it faced”, by its board and senior management not having oversight of its AML/CTF programme, operating a 24/7 business via its website and app.
Thompson told The Front Page it also alleges Entain has not conducted appropriate checks on higher-risk customers.
“Racing Minister Winston Peters' spokesperson told me it wouldn’t be appropriate to comment on legal action, but that the minister has been briefed on the matter.
“He said TAB NZ’s board has sought assurances from Entain regarding the action, and have advised that Entain has engaged and cooperated fully with AUSTRAC,” he said.
In the UK, mystery surrounds why accounting firm KPMG is under investigation by the sector’s regulator over its audit of Entain’s 2022 accounts.
It comes after Entain in 2023 settled for bribery offences at the group’s former Turkish unit, which it had sold in 2017. It was after an investigation looked into allegations that Entain failed to have adequate procedures in place to prevent bribery.
Thompson said an interesting part of the submissions on the amendments to the bill is that Peters and TAB NZ contend it’ll reduce gambling harm.
“In the submissions against the bill, there are some people who argue that it could potentially increase gambling harm because if the odds are worse than they are no, troubled gamblers who aren’t necessarily paying that much attention to the odds and are just trying to scratch an itch would theoretically lose their money faster than they would if the odds are better,” he said.
Others have expressed concern that the monopoly would push Kiwis onto the black market.
“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, etc,” he said.
“For the main credible ones, Betway, Bet365, and Sportsbet, it’s unlikely that will be possible to bet with them using a VPN because you still need to verify your age and your address, and given if you give them a New Zealand address they will be legally obliged not to let you bet with them.”
Listen to the full episode for more.
The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016.
You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, or wherever you get your podcasts.
