Entain to pay Tab NZ NZ$100m following new regulations
Offshore sports betting operators will be forced to leave the New Zealand online market, allowing Entain to deepen its de facto monopoly over the region in partnership with Tab NZ.
Key points:
– Racing Industry Act amendment extends Tab NZ’s existing land-based monopoly online
– Entain will pay out NZ$100m as terms of its 2023 strategic partnership with Tab NZ are fulfilled
Entain will mark the approval of a recent amendment to the 2003 Racing Industry Act with a NZ$100m (US$60.6m) payout to Tab NZ.
Tab NZ’s monopoly over sports and racing betting in New Zealand is well established in land-based markets but will now encompass online betting as well.
Global operator Entain announced a 25-year strategic partnership plan back in June 2023 and has since made multiple significant financial commitments to Tab NZ.
With the new “legislative net” forcing offshore competitors to leave the market, Entain will now honour the partnership agreement with this payment.
Tab NZ’s establishment in 2003 was in part a bid to support the wider sporting landscape of New Zealand and Entain’s Sam Moncur has reinforced the company’s alignment with that long-term vision.
Moncur noted: “We are honoured that Entain’s financial support of sporting and racing codes through our strategic partnership, plays a role in strengthening communities and teams across New Zealand”
Good to know: The initial terms of the strategic partnership include a commitment that Tab NZ will receive a minimum of over NZ$1bn over the first five years via gross profit share and additional payments
Moncur is the Managing Director of Entain Australia and New Zealand, and he will be pleased to have overseen the realisation of one of the key goals of that partnership.
More payments are outlined in the partnership agreement, though it remains to be seen how the UK-founded operator will seek to benefit from further licensing developments around online casinos.
For now, iGaming remains unregulated in the country, though this seems set to change under the Online Gambling Implementation Programme.
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