Monopoly concern! New Zealand blocks TAB’s online casino bid
The New Zealand government has rejected a $150 million offer from the TAB to secure an online casino licence, as it moves forward with plans to regulate online gambling for the first time.
The TAB, a statutory entity, sought a law change to allow online casino gambling, arguing its long-term viability is at risk if excluded from the market. However, Internal Affairs Minister Brooke van Velden (depicted in the featured image) dismissed the proposal. “Not under my watch,” she stated.
Racing Minister Winston Peters also rejected the request, stating that casino products were fundamentally different from sports and racing wagering. However, the TAB remains determined and has asked for a legislative review.
Foreign profits stir worries
For the unaware, New Zealand government is auctioning 15 online casino licences, a move that has sparked concerns among local operators. Industry stakeholders fear that foreign-owned multinational companies could dominate the market, limiting opportunities for domestic firms.
Currently, the TAB is restricted to sports and racing betting. In a written appeal, it argued that an exclusive casino licence could generate substantial revenue. “The operator could pay approximately NZ$150m upfront for a 10-year licence,” it wrote to van Velden in December 2023.
Despite this, the government remains firm, prioritising core services over casino gambling. While its casino bid was rejected, the TAB is lobbying for a monopoly on online sports and racing betting. Amendments to the Racing Industry Act, currently before Parliament, aim to extend its exclusive control to digital betting.
The move is particularly significant for the TAB’s 25-year partnership with UK-based betting giant Entain. Under this agreement, signed in 2023, Entain committed $900 million to the New Zealand racing industry over five years.
But, the TAB claims delays in passing the legislation are costing it $1.5 million per month in payments from Entain, as offshore operators continue to draw local customers.
TAB loses monopoly battle
Concerns have been raised over granting the TAB a monopoly due to its partnership with Entain. A government briefing warned that it could effectively hand a global for-profit gambling provider exclusive rights in New Zealand, potentially sending profits offshore.
Further complicating matters, Entain has faced compliance breaches in Australia related to anti-money laundering, raising oversight concerns.
Despite these issues, Peters introduced legislation last year to extend the TAB’s monopoly to online sports and racing betting, which is expected to pass by May 2025. Meanwhile, the TAB has also secured the right to retain its 415 pokie machines, reversing a decision by the previous Labour government.
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