The New Zealand government has officially enacted legislation that establishes TAB NZ as the exclusive legal provider of online sports and racing betting in the country. This legislation received Royal Assent and took effect on June 28, 2023, introducing new regulations that several politicians believe could significantly enhance New Zealand's betting industry.
The six political parties represented in New Zealand's parliament approved amendments to the Racing Industry Act 2020 last week. These changes render it illegal for offshore operators to accept bets and grant greater authority to combat gambling-related harms. A report from H2 Gambling Capital in May highlighted that only 10% of online gaming revenue is generated within the country, leading to increased competition in the grey market.
TAB NZ's dominance in sports betting will coincide with a newly liberalized, yet limited, online casino market expected to launch in 2026. Organizations such as SkyCity, TAB NZ, Grand Casino Dunedin, Christchurch Casino, Class 4 societies, 888, Bet365, SpinBet, Spin City, and Super Group have expressed interest in participating in the iGaming market once opened.
Racing Minister Winston Peters stated in a government announcement last week that this law change would enhance the sustainability of New Zealand’s racing industry, which contributes NZ$1.9 billion annually to the economy and employs 13,500 people.
“If an overseas company is offering you bets, they are breaking the law,” Peters emphasized.
The Department of Internal Affairs oversees gambling regulation in New Zealand, and its Director of Gambling, Vicki Scott, detailed how bettors should handle illegal operators. “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,” she stated. Scott also cautioned that overseas operators might lack adequate consumer protections, leading to potential financial losses for bettors.
With TAB already generating 90% of racing betting revenue in New Zealand, the new legislation expands its monopoly beyond land-based operations to online betting. Initially introduced in December 2022, the legislation faced delays as it traversed various committees and encountered political opposition.
Peters views the law change as a means to protect TAB from illicit online competitors while simultaneously promoting the growth of New Zealand’s racing sector. He remarked, “Racing and sports have a special place in communities throughout New Zealand. With the rapid growth in online betting, we needed to make changes to protect TAB NZ’s betting revenue to support the progress of the industry.”
He added, “TAB NZ is the core funding source for New Zealand’s racing industry and contributes vital funding to a variety of sports codes. This legislation redirects New Zealand punters’ dollars for the benefit of the racing industry and sports here, rather than overseas commercial operators.”
During a parliamentary debate last week, Green Party member Steve Abel noted that approximately $185 million had been lost to offshore online racing operators. “This bill will ensure that more of that money is retained by New Zealand,” Abel stated.
Tim Costley from the National Party encouraged the government to explore alternative betting products, such as virtual and fantasy sports, in future legislation. He recognized students from Kaingaroa School attending the session and emphasized the importance of considering future interests.
Celia Wade-Brown of the Greens expressed regret over the slow progress of the bill during committee deliberations, advocating for greater urgency.
The amended law introduces new ministerial powers obligating TAB NZ to disclose more performance information. Existing harm minimization mandates for TAB’s retail venues will be applied to its online operations, allowing it to intervene when online bettors exhibit problematic behaviors. The government clarified that TAB NZ cannot unjustly restrict lawful customers from accessing its online services without valid reasons, such as an identified gambling issue.
In the interim, the Department of Internal Affairs will regulate TAB’s online monopoly until a dedicated online casino regulator is established under forthcoming legislation designed to facilitate an open iGaming market expected to roll out in 2026, granting up to 15 licenses to commercial operators.
As part of its commitment to the New Zealand racing sector, TAB partner Entain plans to invest NZ$100 million following the enforcement of the amendments. TAB NZ CEO Nick Roberts praised the MPs for their approval of the revised Racing Industry Act, asserting on his LinkedIn page that “Kiwis are better for it.”
Entain struck a 25-year partnership with TAB NZ in March 2023, encompassing wagering and broadcast functions, as well as funding. Sam Moncur, Entain's Managing Director for Australia and New Zealand, expressed pride in contributing to the future of the racing codes. “We’re honored to contribute to the future of the racing codes, and also to play a part in keeping Kiwi sport alive and thriving.”
