Key points:
- The legislation sees Tab NZ set to become the sole sports and racing betting provider online and offline
- The move aims to protect racing industry's economic sustainability
- A focus has been placed on consumer protection with new regulatory measures and harm minimisation initiatives
New Zealand Racing Minister Winston Peters has announced proposed amendments to the Racing Industry Act 2020 aimed at bolstering the long-term sustainability of the country’s racing sector.
The changes, which include granting Tab NZ exclusive rights to offer sports and racing betting both on land and online, reflect the Government’s desire to address challenges posed by offshore betting operators.
Tab NZ currently generates 90% of the racing industry’s revenue, which contributes significantly to New Zealand’s economy and supports over 13,500 jobs. However, growing competition from international online betting platforms has created financial pressure on the current model.
Minister Peters described the legislation as a necessary step to align Tab NZ’s operations with the evolving sports betting environment, stating: “This legislation will enhance the long-term sustainability of New Zealand’s racing industry by making Tab NZ New Zealand’s sole provider for sports and race betting both on land and online.
“Growing competition from offshore online betting operators poses a significant threat to the Tab NZ model. This change brings the model up-to-date with the current sports betting climate and will ensure the financial sustainability of the racing industry, as established in the Coalition Government’s Q4 Action Plan for New Zealand.”
The bill also introduces new oversight mechanisms, granting the Minister the authority to request information from Tab NZ and enforce prohibitions on unauthorised operators.
In addition, the legislation proposes several updates to strengthen consumer protection and minimise the harm associated with gambling. These include expanded regulatory powers and the removal of the Point of Consumption Charge, a move aimed at reducing barriers for the Tab NZ to operate effectively.
The Bill will now be referred to the Governance and Administration Committee for further review and public consultation through the select committee process.
