New Zealand Minister blocks Tab online casino bid
The bid was valued at NZ$150m (US$87.2m).
Key points:
– Documents have revealed that Tab offered NZ$150m to the NZ Government ‘for an exclusive market where there are one or two providers’
– The proposal was denied by ministers
The Tab reportedly offered a NZ$150m deal to the New Zealand Government in an attempt to secure an online casino licence, according to RNZ.
The New Zealand Government is currently auctioning 15 online casino licences as it looks to launch a regulated online gaming market. However, Tab is currently barred from offering online gaming, as it is a statutory entity and the monopoly operator of sports and race betting in New Zealand.
In an attempt to change this and acquire a licence, Tab wrote to ministers, stating that its business may not be sustainable without access to this portion of the market. Despite also offering NZ$150m, Internal Affairs Minister Brooke van Velden was reportedly not interested.
“Not under my watch,” Van Velden told RNZ. “I don’t believe the Government should be involved in casino gambling. I look at the Government trying to address the core services people need in their lives and providing an online service for casino games is not what I think the Government should be involved in.”
The letter was sent back in December 2023 but has now been revealed publicly. In the letter, Tab wrote: ‘It is possible to get a substantial capital payment to the Government from selling the rights to iGaming in an exclusive market. We estimate that there is a NZ$150m capital payment available for an exclusive market where there are one or two providers.’
Racing Minister Winston Peters has also been aware of Tab’s goals to enter the online market, having received correspondence from the operator. However, he stated he would not change the law for Tab.
Currently, Tab is in a 25-year partnership with Entain, with the operator set to get direct payments from Entain if or when its monopoly status was taken online. However, this has not happened, with the TAB writing: ‘A delay in the legislative net is costing TAB NZ approximately $1.5m per month in payments from Entain.’
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