New Zealand’s Offshore Betting Ban: A Monopoly Shift for TAB NZ and Entain

New Zealand has moved to ban offshore betting operators from accepting wagers from within the country, an impactful legislative change that solidifies TAB NZ’s monopoly on online racing and sports betting.

This amendment to the Racing Industry Act 2020, which has passed its third reading and is expected to be signed into law shortly, marks a crucial pivot in how the New Zealand sports and racing industries are funded.

The core intent of this legislative shift is to stem the flow of hundreds of millions of dollars annually from New Zealand punters to overseas betting agencies, which typically provide minimal or no return to local racing and sporting organisations.

Previously, estimates suggested between $180 million and $200 million was wagered offshore each year, with a significant portion on sports, particularly NBA basketball.

The new law aims to redirect these funds back into the domestic ecosystem, enhancing the financial sustainability of New Zealand’s racing and sports sectors.

This regulatory change is a major strategic victory for TAB NZ and its long-term strategic partner, Entain.

In 2023, TAB NZ entered a 25-year agreement with the global betting operator Entain to manage its day-to-day operations.

A key condition of this partnership, which pledged to inject $900 million into New Zealand racing over its initial five years, was the passing of legislation to establish TAB NZ as the sole legal online betting provider.

As a direct result of this legislative move, Entain is set to make a $100 million payment to TAB NZ, with $20 million earmarked for Sport NZ, and the remainder distributed to racing codes.

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