New Zealand-based punters will still be able to use overseas bookmakers when overseas, for example when attending a race meeting or wanting to bet on a sporting event when in another country.
The new law will give TAB NZ, which is the regulatory arm of the TAB, and Entain a monopoly on the racing and sports betting markets in New Zealand through their two brands, TAB and Betcha.
It is seen as a major strategic win for TAB NZ and Entain, who two years ago entered a 25-year deal to run the day-to-day operations of TAB NZ, promising to pour $900 million back into New Zealand.
One of the key factors in their forecasts was today’s legislative change and subsequent monopoly.
The legislation is not unusual with many other countries not allowing punters to bet off shore, including Australia, but New Zealand’s case is different in that one operator will control the market whereas Australian punters have a variety of domestic betting agencies to choose from.
Entain has moved to allay concerns that a monopoly could mean punters will get inferior odds to those betting overseas who have more choice by stating the TAB and Betcha odds will match those of its Australian brand Ladbrokes.
The two New Zealand brands use the same technology as Ladbrokes, another Entain company, so the odds are usually the same in both countries.
That should provide some comfort for New Zealand punters concerned by the monopoly because with the fixed odds basically being copied from the Ladbrokes business in Australia they have to be fair to attract customers in that ultra competitive betting space.
Minister Peters said on Wednesday he will ensure New Zealand punters get a fair deal.
“Increased ministerial and regulatory oversight will be in place to ensure TAB NZ operates with integrity,” he stated.
“If TAB NZ’s performance does not meet expectations, action can be taken to uphold the protection of customers.”
That message was echoed by Entain New Zealand’s managing director Sam Moncur.
“We are very aware of the privilege we have to provide a world-class betting experience to Kiwis,” says Moncur.
“Entain, through TAB and Betcha, will deliver odds as fair and competitive as a customer would find in the highly competitive Australian market.
“Kiwis loves a fair go and we are committed to providing fair odds for our racing and sports fans into the future.”
Kiwi punters should also have TAB NZ looking out for their interests.
As the regulatory arm of the agency their board is appointed by, and report to, Minister Peters and TAB NZ also have a new Advisory Committee comprising some of New Zealand racing’s most powerful people who will be very cognisant of Kiwi punters getting a fair deal.
“TAB NZ is proud to support our economically significant racing industry and back our iconic sporting sector,” said TAB NZ chief executive Nick Roberts.
“This legislation will turbo charge those contributions, delivering national impact.”
“The Government has struck the right balance with this law change as evidenced by its universal support across parliament. The regulatory settings will minimise harm while also ensuring returns to our communities are maximised.”
“Critically, our strategic partnership with Entain means that Kiwis have access to a world class betting experience in a safe environment.”
The TAB and Entain do operate one of world’s fairest policies on how much even the most successful punters are allowed to win on New Zealand races, with their “Punters Promise” guaranteeing bettors are allowed to bet to win at least $2000 on domestic races.
While the impending monopoly will still be unpopular with some the reality is New Zealand racing not only needs the huge payout the legislation triggers but the extra future revenue generated by Kiwis punting at home instead of off-shore, which could run into billions of dollars in the future.
The racing codes face major infrastructure challenges that not only threaten its sustainability but potentially thousands of jobs.
How the betting law changes will work
1. When will the ban start?
The Bill will likely be signed into law next week and become effective immediately.
2. What sites will be affected?
All betting sites run by overseas-based betting agencies including huge betting exchange Betfair.
3. Can Kiwi punters work around it?
In short, not really.
While some could try VPNs the onus is on the betting operator to not accept bets from New Zealand-based clients, who have to have their address listed and verified to open an account.
4. Where can New Zealand punter bet after the law change?
With the TAB, both in agencies, pubtabs and at racetracks, and online with its second brand Betcha.
5. Will the TAB still run totalisator betting as well as fixed odds?
Yes.
Michael Guerin wrote his first nationally published racing articles while still in school and started writing about horse racing and the gambling industry for the Herald as a 20-year-old in 1990. He became the Herald’s Racing Editor in 1995 and covers the world’s biggest horse racing carnivals.
