New Zealand to expand TAB monopoly to online betting

• Industry News
• 09. 12. 2024.
• Nikola Lasica

While New Zealand is considering introducing and regulating online gambling by 2026, the latest proposal from the authorities could further increase the monopoly of the country’s operator, TAB.

According to New Zealand’s Racing Minister, Winston Peters, the new model would also cover online betting.

Growing TAB monopoly

At this moment, TAB holds a monopoly on all sports betting activities. This includes horse racing and greyhound racing. However, Peters’ proposal would expand the operator’s monopoly to sports and race betting. According to available information, online wagering would also be covered.

In addition to having a monopoly over sports betting and horse racing, TAB provides crucial funds for these sports. Currently, the monopoly accounts for around 90% of the revenue generated by the country’s racing industry.

The new proposal would ensure the industry’s future by amending the 2020 Racing Industry Act. That way, TAB gets a monopoly over sports betting and race betting, regardless if they’re carried out online or through land-based venues.

According to Peters, the goal of the legislation is to provide sustainability for the country’s racing industry. TAB would become the sole provider of online and land-based sports betting and race betting in NZ. He pointed out that the growing number of offshore operators represented a significant threat to the current model.

According to him, adding offshore operators to the online betting market was a risk to the current monopoly model. In addition to growing the operator’s monopoly, the new bill would also grant regulatory authority to the minister.

However, before any changes to the 2020 Racing Industry Act can be made, the proposal must receive the necessary approval from lawmakers.

Online gambling still on hold

The proposal appears at a time when New Zealand is considering a new online gambling regulation. The suggested changes would offer more protection from gambling-related harm and include a limit on the number of iGaming licenses.

Operators who get a license would have to adhere to stringent rules, which will include an age verification system.

However, lawmakers aren’t in hurry, although the country is getting closer to regulated online gambling.