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TAB Problems - ENTAIN's solution - bring it inhouse!


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New Zealand punters frustrated as TAB website and app crashes for hours
www.nzherald.co.nz
 
TAB said the significant degradation in our services was caused by an issue within our databases.
TAB said the significant degradation in our services was caused by an issue within our databases.

TAB said the significant degradation in our services was caused by an issue within our databases.

New Zealand sports betters were left stranded after the TAB website and mobile app went down for hours on Saturday.

One person told the Herald he spent 45 minutes trying to place a bet before eventually giving up.

He said an error message kept popping up whenever he refreshed the page and tried again.

“It’s the second major outage since international wagering giant Ladbrokes bought the TAB,” he said.

“Saturday is the busiest betting day of the week. It’s unacceptable and the equivalent of the Lotto site going down for hours on a Saturday afternoon.”

TAB operators Entain Australia and New Zealand Managing Director Cameron Rodger said they experienced some significant issues this afternoon when the TAB website and mobile app became unavailable for an extended period.

“This significant degradation in our services was caused by an issue within our databases. Our teams worked to restore service as soon as possible and the site was fully operational again by 4pm,” he said.

“We are continuing to work well towards our migration of our digital channels to a new platform later this year, which will remove reliance on external providers, and will give us significantly better control over our digital operations.

“This planned migration remains our top priority, and today’s issue just reconfirms that priority.”

Entain is an international betting agency that owns brands such as Bwin, Ladbrokes, and SportingBet.

It took over the running of the New Zealand TAB in the middle of last year.

Former Racing Minister Kieran McAnulty approved the deal that saw Entain take over the day-to-day running of New Zealand’s only betting agency for 25 years.

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So ENTAIN is blaming their IT  outsource provider, which is presumably still SPARK, for Saturday's issues.

Their solution is to bring the management of the platform in-house.

Don't ENTAIN own the underlying platform as it is used for their other horse wagering brands?

Contrary to some thinking there possibly won't be a new system but perhaps the same one managed better.

Plus a new IT team.

Do they already own a data centre or will they continue to use an outsourced one but where they manage the IT kit?

 

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1 hour ago, Chief Stipe said:

So ENTAIN is blaming their IT  outsource provider, which is presumably still SPARK, for Saturday's issues.

Their solution is to bring the management of the platform in-house.

Don't ENTAIN own the underlying platform as it is used for their other horse wagering brands?

Contrary to some thinking there possibly won't be a new system but perhaps the same one managed better.

Plus a new IT team.

Do they already own a data centre or will they continue to use an outsourced one but where they manage the IT kit?

 

Don't know about the data centre but according to Sharrock they are bringing essentially their Oz platform, including for the phone app.

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23 minutes ago, curious said:

Don't know about the data centre but according to Sharrock they are bringing essentially their Oz platform, including for the phone app.

But isn't the underlying software the same?  

Wasn't Ladbrokes using the same software that TABNZ purchased?

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11 minutes ago, Chief Stipe said:

But isn't the underlying software the same?  

I don't think so but I'm only going by what Sharrock briefly said. In the next breath he said he was not an IT person and tried to stay as far away from it as possible. So, make of that what you want.

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16 minutes ago, curious said:

I don't think so but I'm only going by what Sharrock briefly said. In the next breath he said he was not an IT person and tried to stay as far away from it as possible. So, make of that what you want.

I thought the TAB bought (leased) the software OpenBet which was (is) used by Ladbrokes.  PaddyPower and Betfair also use OpenBet.

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I see Hesi is off on the wrong tack again.  He comments online:

I find it disappointing that the usual suspects, not necessarily on this site are so quick to start moaning when the TAB system goes down as it did yesterday.  Entain, whether you agree with it or not have come in and bankrolled a virtually bankrupt NZ TAB for 5 years guaranteed, put up all sorts of other ridiculous amounts of money for bonus races, provided other initiatives such as horse ownership.  Yet as soon as there is a hiccup with software that is not theirs, that is something they are replacing as soon as they can, people put the boot into them as jokes and a circus.  I think not

The circus would have been maidens racing for $10-11K, which would have been the likely scenario had Entain not come along.  Then people would have really had something to bitch about.

Let's address a few of his points:

I find it disappointing that the usual suspects, not necessarily on this site are so quick to start moaning when the TAB system goes down as it did yesterday. 

It is the right of any disgruntled customer to "bitch and moan" when the service is poor.  It comes with the Territory in any retail business.

Entain, whether you agree with it or not have come in and bankrolled a virtually bankrupt NZ TAB...

TABNZ wasnt "virtually bankrupt" when ENTAIN bought it.  Hesi your Labour Government bailed the TAB out directly to the tune of $56 million in July 2020 well before ENTAIN acquired it in May 2023.  

McKenzie then proceeded to shift liabilities off the balance sheet to the Codes in a deft dance of smoke and mirrors.  Then proceeded to negotiate a deal with a buyer.  Aided and abetted by Labour's McAnulty.  McKenzie and McAnulty didn't attempt to address the fundamental issues around its profitability.

Arguably it would have been better for the industry, taxpayer and even ENTAIN to have sold it when insolvent.  That was one way to get out of the contracts that were killing profitability.

ENTAIN ride in on the White Hirse and for 5 years guaranteed, put up all sorts of other ridiculous amounts of money for bonus races, provided other initiatives such as horse ownership. 

Well Hesi you are right about one thing - they are "ridiculous amounts" and unless revenue increases unsustainable.  Not to mention that they are feeding the wrong end of the industry.

Which leads to the final point...

Yet as soon as there is a hiccup with software that is not theirs, that is something they are replacing as soon as they can, people put the boot into them as jokes and a circus.

It IS their software - they bought it and some of their other brands use it as well.  Surely for $1b they did due diligence on all aspects of the busines and knew what the issues were.  As a shareholder wouldn't you want them to put money into fixing the issues straight away so as to protect their revenue streams?  Instead the dealt out copius quantities of shareholder cash (borrowed at that).  As a stakeholder in the NZ racing industry wouldn't you also want them to do that - fix the issues?  No point having a multitude of million dollar races if you have no revenue and a whole lot of disgruntled customers.  But they'll fix the latter by preventing them from betting with other agencies.

There will be a costly bill to extricate themselves from their current IT outsource provider.

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Entain took the NZ TAB on fully aware of the pitfalls.  At the Roadshows didn't they tell us about their expertise?  I thought that included computer software related aspects.  They also made it clear they were customer focussed.

Rightly so customers of Entain are not accepting of a substandard service when they were promised better.

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23 minutes ago, Special Agent said:

Entain took the NZ TAB on fully aware of the pitfalls.

You would hope so.   

 

26 minutes ago, Special Agent said:

At the Roadshows didn't they tell us about their expertise?  I thought that included computer software related aspects. 

Here's hoping they do as, if as has been inferred (haven't seen it said definitely), they are going to migrate software platforms then that is no small task.

Why did the outage occur yesterday?  Was it really a Saturday any different to any other?

29 minutes ago, Special Agent said:

Rightly so customers of Entain are not accepting of a substandard service when they were promised better.

Exactly.  What happens in 5 years if ENTAIN are still making losses?

It also looks like we have zero IT skill, nous or capability in any of the code management.  A serious indictment when the CEO of NZTR openly says he doesn't know much.

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18 hours ago, Chief Stipe said:

 

It also looks like we have zero IT skill, nous or capability in any of the code management.  A serious indictment when the CEO of NZTR openly says he doesn't know much.

It's a very good point especially when you have a COO on huge $ who appears to just be reporting on tracks & abandonments, the $$ would have been far better spent getting someone with some IT business expertise. Might have stopped the Centralisation project fiasco as well.

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40 minutes ago, Huey said:

It's a very good point especially when you have a COO on huge $ who appears to just be reporting on tracks & abandonments, the $$ would have been far better spent getting someone with some IT business expertise. Might have stopped the Centralisation project fiasco as well.

He basically said the same thing about wagering. That's the TAB's job.

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The NZ TAB no doubt will or have already paid out Open Bet and Paddy Power for the remaining years left in their contracts reportably close to $20 million a year. The main person behind getting Open Bet involved with the NZ TAB in the purchase of a new betting platform and ongoing associated yearly costs in the millions left a couple of years ago when the NZ TAB reduced the number of GM's. No doubt he received a rediculous payout based on his rediculous salary.

Guess who he is employed by now, Open Bet.  You couldn't make it up.  

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17 minutes ago, NZRacing said:

The NZ TAB no doubt will or have already paid out Open Bet and Paddy Power

Perhaps but where it all gets intriguing is Ladbrokes (an ENTAIN brand) also uses OpenBet.

Then of course there is the big parent of OpenBet - Flutter Entertainment.

Under Flutter Entertainment is Paddy Power, Sportsbet, Betfair and a number of other brands.

Does Ladbrokes have major outages?  Or Paddy Power?  If they don't then it would suggest it isn't the software but the management of it that is a problem in NZ.  The inference being an Outsource problem.  

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He used to list the NZ TAB as a past working place. Ha he largely contributed to sending it broke with his ill researched purchases and lack of wagering and managerial knowledge and experience and has distanced himself from any past working association with it.

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On 19/02/2024 at 8:19 AM, Chief Stipe said:

Which begs the question what actually is Sharrocks job?

He is CEO of NZTR - thats NZ thoroughbred racing, not wagering, not TAB, but racing. very petty to knock a man because he was open about his shortcomings (as they relate to another company). As he said at the roadshows, NZTR are part of the team with owners, trainers, jockeys, clubs of NZTR, the more we knock each other down then the worst it is - start smiling and be thankful for the entain money

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36 minutes ago, Tiger Tiger said:

He is CEO of NZTR - thats NZ thoroughbred racing, not wagering, not TAB, but racing. very petty to knock a man because he was open about his shortcomings (as they relate to another company).

Thoroughbred Racing's SOLE source of revenue is from WAGERING! (License fees are nickel and dimes by comparison).  If you outsource the acquisition of your SOLE source of REVENUE then you need to manage that relationship from a position of knowlege NOT ignorance.  Otherwise it isn't a partnership!!!  What makes it worse now is there are THREE entities involved - ENTAIN, TABNZ and NZTR!!

40 minutes ago, Tiger Tiger said:

As he said at the roadshows, NZTR are part of the team with owners, trainers, jockeys, clubs of NZTR, the more we knock each other down then the worst it is - start smiling and be thankful for the entain money

Just like we smiled for all the Winston taxpayer "gifts"over the years - the $1m races, the new AWT's (that no one really wants), the $56m bailout of the insolvent TAB.  Ask yourself this question if NZTR, TABNZ and ENTAIN are on the same page and have a mutal understanding with regard to wagering what happens in 5 years time when ENTAIN aren't making enough profit to maintain the current largesse?

Very little of the windfall is going where it should be going instead it is being spent on novelty races that screw the pattern.  The majority of the trainers, clubs, owner and jockeys aren't getting sniff of it!  What's the bet the big novelty races start getting raided by the big Ozzie trainers under the guise of having bought a yearling at Karaka?

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The obvious corollary is NZTR and TABNZ outsourced a key strategic function - their IT again is seems without maintaining any internal senior IT management.  The end result?  10's of millions of dollars down the gurgler for TABNZ and a $4m failed IT project for NZTR!!!!

The first rule of business is NEVER EVER outsource a key strategic function UNLESS you are prepared to acquire internal management expertise and MANAGE the relationship!!!

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27 minutes ago, Chief Stipe said:

Thoroughbred Racing's SOLE source of revenue is from WAGERING! (License fees are nickel and dimes by comparison).  If you outsource the acquisition of your SOLE source of REVENUE then you need to manage that relationship from a position of knowlege NOT ignorance.  Otherwise it isn't a partnership!!!  What makes it worse now is there are THREE entities involved - ENTAIN, TABNZ and NZTR!!

Just like we smiled for all the Winston taxpayer "gifts"over the years - the $1m races, the new AWT's (that no one really wants), the $56m bailout of the insolvent TAB.  Ask yourself this question if NZTR, TABNZ and ENTAIN are on the same page and have a mutal understanding with regard to wagering what happens in 5 years time when ENTAIN aren't making enough profit to maintain the current largesse?

 

I suspect Entain are a bit naive about the state of play, they spend and spend, but for how long ?

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