New Zealand lawmakers consider TAB monopoly for online betting

New Zealand lawmakers are debating a proposed bill that would make TAB New Zealand the country’s sole operator for online racing and sports betting, a move supporters say will improve regulation and retain gambling revenue domestically but critics warn could stifle competition and drive bettors to offshore platforms.  
    
The proposed amendments to the Racing Industry Act 2020 would eliminate competition from private online bookmakers and create a state-controlled monopoly. Proponents argue that a government-run system can better enforce responsible gambling measures and ensure betting revenue is reinvested in local sports and racing industries.  

However, the proposal has drawn criticism from industry observers, who argue that limiting consumer choice may lead to worse odds for bettors and reduced incentives for innovation. The Commerce Commission, which is actively promoting competition in other industries, has yet to weigh in on the bill.  

Additionally, some industry experts warn that restrictions on legal betting options could push New Zealanders toward black market gambling, where consumer protections are minimal.  

“That is clearly a risk and the minister has acknowledged that will likely happen, that very committed sports bettors will find a way around the law using things like cryptocurrencies, etc,” BusinessDesk’s Gregor Thompson told The Front Page.

The bill also comes at a time when TAB NZ’s operating partner, Entain, is under regulatory scrutiny in multiple jurisdictions. Australia’s AUSTRAC has launched civil penalty proceedings against the company, alleging it failed to comply with anti-money laundering and counter-terrorism financing laws.  

Meanwhile, the UK’s Financial Reporting Council (FRC) is investigating KPMG’s audit of Entain’s 2022 financial statements, raising governance and compliance concerns. Lastly, in 2023, Entain settled bribery charges linked to its former Turkish operations.  

New Zealand’s Racing Minister Winston Peters has been briefed on the legal challenges facing Entain, but his office declined to comment on the matter when approached by local media.