New Zealand Government Rejects TAB’s Online Casino Bid
New Zealand’s TAB proposed a $150 million deal to secure an online casino license, but the government has firmly rejected the offer, according to a report by RNZ.
LISTEN TO THIS ARTICLE:With New Zealand regulating online gambling for the first time, it is auctioning 15 online casino licenses. Local operators are worried that foreign-owned multinational companies will dominate the market. Under current laws, the TAB, a statutory entity, is prohibited from offering online casino games.
In a letter to ministers, the TAB argued that its long-term viability was at risk unless it was allowed to enter the online casino market. Documents show that in December 2023, the TAB approached Internal Affairs Minister Brooke van Velden, offering a $150 million capital payment in exchange for an exclusive iGaming license. However, van Velden firmly rejected the proposal.
According to RNZ, she said that she does not believe “that the government should be involved in casino gambling” but should remain focused on “essential services rather than facilitating online casino gaming.”
Racing Minister Stands Firm
Racing Minister Winston Peters confirmed he received the proposal but stated he had no plans to change the law to allow the TAB to operate an online casino.
He said that casino products are “fundamentally different from wagering products” and that he expects the TAB to stay focused on sports and racing.
Despite the setback, the TAB has not given up and continues to push for a legislative review to be considered for a license.
Meanwhile, Peters has introduced legislation to extend the TAB’s monopoly on sports and racing betting to the online sector. The TAB, which partnered with UK betting company Entain in 2023, could significantly benefit from the move.
Documents reveal that the TAB urged the government to implement the “legislative net” by April 2024 as it was losing $200 million annually to offshore betting operators. The TAB also said that delays in passing the law were costing it approximately $1.5 million per month in lost payments from Entain.
Under the new legislation, once the online monopoly is secured, Entain will immediately provide the TAB with an additional $100 million, plus guaranteed annual payments of at least $15 million.
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Concerns over Agreement with Entain
However, concerns have been raised about the implications of granting an online betting monopoly to the TAB, especially given Entain’s 50-50 revenue-sharing agreement with the organization. An Internal Affairs briefing noted that while the TAB was once a nonprofit entity that supported the racing and sports industries, its partnership with a “for-profit” offshore operator raises ethical and financial concerns. Additionally, Entain is under scrutiny for compliance breaches in Australia, including failing to meet anti-money laundering requirements.
Despite these issues, the legislation is expected to pass by May 20254.
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