Entain chosen as partner to acquire management rights to New Zealand’s sports betting monopoly

Sports betting giant Entain announced Tuesday it has been selected by TAB New Zealand as its preferred partner for a 25-year strategic arrangement. The company beat Tabcorp to become the preferred partner to acquire the management rights to New Zealand’s sports betting monopoly.

The proposed strategic arrangement, and timing of completion, remain subject to approval from the New Zealand Minister for Racing. Further information, as appropriate, will be provided after the completion of the Ministerial approval process, said Entain.

Tabcorp was also under consideration.

Key terms of the strategic deal include a 25-year-long arrangement. Entain agreed to make payments of up to $160 million. Subject to Ministerial approval, $99.8 million is payable in 2023, with the balance subject to passing of certain legislative amendments.

The arrangement also covers ongoing gross profit share, plus payments above, to result in minimum guaranteed funding to TAB NZ of over $624 million in the first five years of the arrangement.

"We have a compelling vision for the future of TAB NZ, which includes a renewed focus on innovation and technology, and a long-term commitment to all racing, sport and industry stakeholders," he added.

As the partner of choice for New Zealand, "we have made a firm commitment to employment continuity for at least 24 months, with the team at TAB NZ essential to our future vision and growth of the market in New Zealand," he stated.

Former Racing NSW chairman John Messara