New Zealand plans to impose fees on offshore operators

The fee may allow the TAB to widen its product range to stem the flow of Kiwis betting online with offshore operators.

The proposals from the Offshore Racing & Sports Betting working group were announced by Minister of Racing Nathan Guy at the annual meeting of the New Zealand Racing Board (NZRB), which operates the TAB. The working group estimates $58 million of gross betting profit is lost offshore every year, with the number of New Zealanders betting online with the TAB's foreign competitors doubling since 2010 to 40,000.

The group said New Zealanders were betting offshore because foreign gaming companies had a wider product range, offered better odds and were more aggressive in acquiring customers. The TAB has fought back with the launch of a mobile app, which has become its fastest growing channel, but the group said the betting agency needs to do more to compete, including the introduction of better technology.

It suggested ending the current prohibition on in-race betting, which "would make in-race betting consistent with in-play betting on sports matches", allowing bets on sports that don't have a national body such as mixed martial arts, and permitting the NZRB to bring new products to market, such as betting on events other than sports or racing.

It also recommended legislating for an intellectual property fee, which offshore gaming businesses would have to pay when they accepted bets on racing and sporting events taking place in New Zealand. The fee could generate $16.6 million revenue in its first year, if set at 2 percent. About $1 billion a year is currently bet offshore on New Zealand racing and sport without the TAB getting a cut, the group said.

Guy said offshore betting on events taking place in New Zealand was undermining investment and employment in the racing industry.