New bill proposes TAB as sole online betting operator in New Zealand

February 17, 2025

New bill proposes TAB as sole online betting operator in New Zealand

A new bill is being scrutinised in New Zealand that aims to amend the Racing Industry Act of 2020. The amendments propose that Totalisator Agency Board (TAB) New Zealand become the sole operator for online racing and sports betting in the country.

This move is intended to streamline the industry, and proponents believe that a government-run entity can better regulate the industry, promote responsible gambling and ensure that money spent on gambling stays within New Zealand. All this was discussed by the New Zealand Herald BusinessDesk’s Gregor Thompson on The Front-Page podcast.

With a monopoly, critics argue that it’s easier to enforce regulations and monitor industry activities, such as ensuring fair play and addressing issues like underage gambling and money laundering. The proposed monopoly is controversial since the Commerce Commission is actively working to enhance competition in other sectors.

However, the bill comes as New Zealanders are estimated to lose a NZ$185 million (roughly $105.4 million) annually to offshore gambling operators.

TAB NZ’s operator in controversy

Interestingly, TAB NZ’s operator, Entain, is not without controversy. The Financial Reporting Council (FRC) recently launched an investigation into KPMG’s audit of Entain plc’s financial statements for the year ending 31 December 2022.

The probe intensifies scrutiny on both the Big Four audit firm and Entain, a major gambling company that owns Ladbrokes, Coral, and other global gaming brands. This development comes amid a series of regulatory challenges faced by both entities, raising questions about compliance and governance practices in the corporate and auditing sectors.

In December, the Australian Transaction Reports and Analysis Centre (AUSTRAC) initiated civil penalty proceedings against Entain for failing to comply with anti-money laundering and counter-terrorism financing laws. AUSTRAC alleged that Entain’s platforms, including Ladbrokes and Neds, failed to conduct adequate risk assessments, exposing them to significant risks of criminal exploitation.

Racing Minister Winston Peters has reportedly been briefed on the situation, raising concerns about Entain’s compliance with Australian laws and regulations.

Another major concern with this proposed bill is that a monopoly could result in worse odds for bettors. With no competition to keep TAB NZ in check, the company may have less incentive to offer attractive betting lines or competitive payouts.

As a result, bettors may experience quicker losses, which could amplify the risk of gambling harm, particularly for vulnerable individuals. There are concerns that restrictions on legal betting options may push Kiwis towards black market alternatives.