New Zealand Government establishes legislative net for racing and sports betting industry
New Zealand has passed legislation that prohibits online racing and sports betting operated by any organisation except New Zealand’s domestic provider TAB NZ. These measures came into force on 28 June as part of amendments made to the Racing Industry Act 2020.
The amended Racing Industry Act includes the establishment a legislative net in New Zealand and extends the statutory body TAB New Zealand’s (TAB NZ) existing exclusivity for land-based racing and sports betting to include online-provided gambling.
The net prevents unlicensed offshore operators offering wagering services to Kiwis. This will ensure funds staked wagering remain onshore to maintain and improve the long-term financial sustainability of the New Zealand racing and sports industry, as well as strengthening harm minimisation measures for players.
The legislation will maximise the financial returns to New Zealand’s racing industry and sports. In the most significant update to online racing and sports betting law in over 20 years, it also increases oversight of TAB NZ and creates powers to make further regulations to reduce gambling harm and protect customers, if needed.
It is now illegal, under New Zealand law, for any person or organisation except TAB NZ, to promote or take bets on racing or sporting events from a person located in New Zealand.
Gambling operators that previously offered online racing and sports betting in New Zealand have been notified that they must withdraw with immediate effect.
This prohibition applies specifically to sports and racing betting. It does not affect online casino gambling, which will be regulated by forthcoming legislation, including licences for approved operators.
Department of Internal Affairs is New Zealand’s gambling regulator and will be monitoring and enforcing compliance with the new prohibition.
“We expect that responsible gambling operators will respect and comply with this law change” says Vicki Scott, Director Gambling, DIA. “They should close New Zealand accounts and pay outstanding money to customers promptly.”
“We encourage gamblers based in New Zealand to be aware of the risks of placing sports or racing bets with providers other than the TAB and betcha brands. If an overseas company is offering you these bets, they are breaking the law here.”
“Gamblers should be extremely cautious of those operators, who may be based in jurisdictions with minimal consumer safeguards in place. They might lack adequate measures to address gambling harm and may not return unspent credits or even pay out on large wins.”
In June 2023, Entain Australia and TAB New Zealand entered a 25-year strategic partnership to provide New Zealand customers an enhanced onshore betting experience, including leading safer gambling tools.
In line with the partnership agreement, Entain will make an additional NZ$100m payment to TAB NZ upon the implementation of the legislative net across the New Zealand betting industry.
Sam Moncur, Entain Australia and New Zealand’s Managing Director – New Zealand, said: “Entain is proud to be building on TAB NZ’s legacy of racing and sport in New Zealand and is privileged to provide an engaging betting experience to Kiwis. This legislative amendment further deepens our commitment to the industry. Alongside the ongoing efforts from government, members and sponsorship, we are honoured that Entain’s financial support of sporting and racing codes through our strategic partnership, plays a role in strengthening communities and teams across New Zealand.”
