New Zealand Racing Bill Amended, Extends TAB’s Online Monopoly

ByTom

The New Zealand government has officially enacted legislation that establishes TAB NZ as the exclusive legal provider of online sports and racing betting within the country.

The amended Racing Industry Act 2020 received Royal Assent and came into effect on 28 June, following support from all six political parties in parliament. The reform aims to boost the local betting industry, protect national revenues, and better control gambling-related harm.

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Offshore Operators Banned, Stronger Consumer Protections Introduced

The amendment prohibits offshore companies from accepting bets from New Zealanders and grants broader powers to regulators to minimize gambling-related risks. This move responds to the growing grey market, which H2 Gambling Capital estimates currently accounts for 90% of online gambling revenue flowing offshore.

With TAB NZ already commanding 90% of land-based racing wagers, this change legally extends its monopoly to online betting as well.

“If an overseas company is offering you bets, they are breaking the law,” said Vicki Scott, director of gambling at the Department of Internal Affairs. She urged New Zealanders to avoid unlicensed operators, warning they may lack safeguards and fail to return player funds or pay out large wins.

iGaming Market Set to Open in 2026

In tandem with this legislative update, New Zealand is preparing to liberalize its online casino market by 2026. While TAB NZ will retain its monopoly on sports and racing betting, up to 15 licenses will be issued for legal online casino operations.

Early interest in the upcoming market has been shown by SkyCity, Christchurch Casino, Grand Casino Dunedin, Class 4 societies, and international operators like 888, Bet365, and Super Group.

Entain to Invest NZ$100M in NZ Racing

Following the law change, Entain, TAB NZ’s long-term partner, pledged to invest NZ$100 million into the racing sector. The UK-based company entered a 25-year agreement with TAB NZ in March 2023, taking on wagering and broadcast responsibilities.

Sam Moncur, Entain’s MD for Australia and New Zealand, said the company is committed to strengthening TAB NZ’s legacy:

“We’re proud to help shape the future of New Zealand’s racing codes and keep Kiwi sport thriving.”

Political Reaction and Debate

Racing Minister Winston Peters said the change was necessary to safeguard local revenues and ensure the racing industry’s long-term sustainability. The industry generates NZ$1.9 billion annually and employs over 13,000 people.

“This law ensures New Zealand punters’ money stays in the country—supporting racing and sports, not overseas corporations,” Peters added.

However, the legislation faced delays during committee stages. Celia Wade-Brown of the Green Party said the bill should have been prioritized more urgently. Steve Abel, also from the Greens, supported the law for addressing the estimated $185 million lost annually to offshore operators.

National Party MP Tim Costley recommended exploring options like virtual and fantasy sports in future amendments.

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New Powers and Harm Minimisation Measures

Under the revised act:

  • TAB NZ must provide detailed performance data to the minister.

  • Existing harm minimisation measures for land-based venues will now extend to online operations.

  • TAB NZ will not be permitted to restrict access to lawful customers unless there is a justified reason (e.g., identified gambling issues).

  • The Department of Internal Affairs will serve as interim regulator for TAB’s online operations until a dedicated iGaming regulator is established.

The broader regulatory framework for New Zealand’s open online casino market is expected to be finalized ahead of the 2026 launch.