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Market Monopolies Create Inefficiency: well unless you are Winnie and it's the NZ TAB.


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Racing Act changes to boost racing industry sustainability

www.beehive.govt.nz

Racing Minister Winston Peters has announced the introduction of legislation to amend the Racing Industry Act 2020 which will extend TAB NZ’s current land-based monopoly for sports and racing betting to online. 

The Racing Industry Act established TAB NZ for the purposes of funding the racing industry. It provides 90 percent of the racing industry’s revenue, which generates billions of dollars for the New Zealand economy and employs over 13,500 people. 

“This legislation will enhance the long-term sustainability of New Zealand’s racing industry by making TAB NZ New Zealand’s sole provider for sports and race betting both on land and online.

“Growing competition from offshore online betting operators poses a significant threat to the TAB NZ model.

“This change brings the model up-to-date with the current sports betting climate and will ensure the financial sustainability of the racing industry, as established in the Coalition Government’s Q4 Action Plan for New Zealand,” Mr Peters says.

The Bill makes a number of other changes to support the success of TAB NZ, including new oversight powers for the Minister to seek information from TAB NZ, and regulatory oversight of the prohibition on other operators.

“These oversight tools will ensure that TAB NZ can continue to deliver value for consumers and the racing industry, and to ensure that the ongoing viability of the industry,” Mr Peters says.

Other changes to the legislation include regulation-making powers for harm prevention and minimisation, and consumer protection, and removing the Point of Consumption Charge.

The Bill will be referred to the Governance and Administration Committee for a select committee process. 

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4 hours ago, Chief Stipe said:

The Bill makes a number of other changes to support the success of TAB NZ, including new oversight powers for the Minister to seek information from TAB NZ, and regulatory oversight of the prohibition on other operators.

 

who they be nowadays? Entain? Ladbrook$?

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Just now, curious said:

How could this work?

“Critically this will deliver an additional $1 billion to our stakeholders over the remaining term of our strategic partnership with Entain,” Roberts said.

Oh maybe that means the 25 years?

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17 minutes ago, curious said:

How could this work?

“Critically this will deliver an additional $1 billion to our stakeholders over the remaining term of our strategic partnership with Entain,” Roberts said.

I would love to see the math's behind this logic?

 

Other interesting math$, will be around the costs of running a stable of horses?

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22 minutes ago, curious said:

Maybe not if current losses are really $180m p.a.

Are you talking gross revenue or gross turnover?

If it is gross revenue then I'd question the gross turnover being $1.4 billion lost.

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14 minutes ago, Trojan said:

Are you talking gross revenue or gross turnover?

If it is gross revenue then I'd question the gross turnover being $1.4 billion lost.

Punter losses on racing and sports betting is what was stated, so gross revenue.

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I asked Cameron George directly for clarification a while back and this is what he said: "

Our data has total losses at $180 million offshore in the wagering (sports and race betting) only category .

That number, again on our methodology) is significantly higher in the online casino category ($600m plus – again as a loss not turnover number)

Edited by curious
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They are in cuckooland if they think GEO blocking will bring in an additional $1 billion. Whatever the amount is going overseas I would be surprised if they recovered 20% of it. The big punters who bet overseas due to higher odds will get around GEO blocking. Over the next 20 years another generation of punters will be gone. Casino's, gambling machines and Lotto will keep attracting the younger crowd. The increase on gaming machines is a huge worry. Thats where the NZ TAB is getting bashed.  The ease of pushing of a button verse trying to do form to bet on a race is too complicated for the younger generation.

When you look at the TAB's three main NZ competitors increase in gambling activity below and the nil growth of the NZ TAB in the previous 12 months it's pretty obvious where the leakage is going. I don't think under Entain the service to NZ punters has improved which is a worry if they are the only game in town if GEO blocking is introduced.

I know a few long-time punters who although they hardly bet overseas won't like getting shut out and left with only one betting option.

It might have helped if the NZ TAB had better educated their customers that every dollar bet in NZ funds and improves the NZ racing industry and sporting codes. Lotto pushes the fact that every dollar returns a % to their community. Some overseas bookmakers do pay fees to the NZ racing codes, why haven't the betting public been advised which ones do?  The codes should be saying if you do want to bet overseas consider using these betting sites as they support NZ racing.  If it comes to the crunch when considering overseas betting sites and one supports NZ racing and another one doesn't I am sure the majority would support the former. Ridiculous complaining about leakage when you don't proactively look to address certain areas yourself.

Quote

An offshore betting operator must pay consumption charges to the designated authority in respect of bets that it takes on racing and sporting events, held in or outside New Zealand, from persons resident in New Zealand.

I hate to think how much money has been lost because the DIA whose job it is to enforce the above hasn't followed through. The amount of actual overseas betting outfits that take betting on NZ product and pay consumption charges is at the low end of the scale. When GEO blocking comes in you might find the NRL, tennis and other Australian sporting codes that NZ punters bet on come knocking at the door and say if it's good enough for you guys to charge Australian betting companies to pay fees on NZ sporting events they take bets on, then the same should apply to you guys taking bets on our product. NRL season betting turnover on NZ TAB verse Aussies taking betting on NZ based league - its not hard to do the math's.

Saying GEO blocking would bring in additional $1 billion is plucking a figure out of the sky - they need to come up with a better case than that.

CER was created for a reason. 

image.png.5bf69e3efe2bbd00c17a287185e207b4.png

Edited by NZRacing
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16 hours ago, NZRacing said:

There is probably a get of clause for a Govt appointed monopoly. You wonder how much knowledge on racing and gambling the 120 MP's who will be voting on the Legislation have. 

Look at the latest edition to the House. Unbelievable.

https://www.youtube.com/watch?v=B_B1h6nebMw

The other parties have had their share of weirdos. We had the recent clown Minister who went as a guest to a factory in Marlborough and called a worker a loser and mocked him with the L sign on his forehead. 

 

 

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NZTR welcomes government announcement on legislative net

New Zealand Thoroughbred Racing (NZTR) is thrilled by the government announcement to introduce a “legislative net” granting TAB NZ the exclusive rights for online wagering in New Zealand.

NZTR Chairman Russell Warwick applauded the Rt Hon Winston Peters for his continued support of the NZ racing industry.

“This announcement is yet another significant milestone for New Zealand racing that has been facilitated by the Minister for Racing and is a major piece of the puzzle to ensure racing is sustainable long-term,” Warwick said.

“The NZTR Board and management would like to thank the Rt Hon Winston Peters, his coalition government, and all parties involved for delivering a critical outcome that will have an immensely positive impact on racing."

"The Minister for racing has been the architect and visionary behind the resurgence of racing in New Zealand and his relentless support is greatly appreciated by the entire industry."

TAB NZ has estimated Kiwis lose $180 million annually to offshore operators. TAB NZ CEO Nick Roberts believes this decision will see those funds returned to the industry while also properly regulating wagering activity.  

“This is a positive outcome which will have national impact. Retaining this money in New Zealand will not only maximise funding to our communities instead of providing profits to foreign companies but also ensure Kiwis can bet in a safe and regulated environment,” Roberts said.

In June 2023, TAB NZ commenced a 25-year strategic partnering arrangement with sports-betting and gaming group Entain for the delivery of TAB NZ’s betting operations. 

TAB NZ will receive a one-off payment of $100m from Entain once the legislation is in effect, in addition to increased revenue share and other payments over the remainder of the 25-year strategic partnership. 

Corporate Communications
New Zealand Thoroughbred Racing
Contact: Catlyn Calder
+64 27 252 2803

nztrcommunications@nztr.co.nz

 
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I smell a rat. This new legislation to give Entain the monopoly on wagering will be the quid pro quo for them accepting the destruction of the Greyhound code from their platform. Thats my take, and may explain their silence. Backroom deal.

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15 minutes ago, aquaman said:

I smell a rat. This new legislation to give Entain the monopoly on wagering will be the quid pro quo for them accepting the destruction of the Greyhound code from their platform. Thats my take, and may explain their silence. Backroom deal.

I don't see what the connection would be?

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21 minutes ago, curious said:

I don't see what the connection would be?

Entain get the legislation to protect them from leakage and the monopoly. In return accept the fact that they will lose a significant portion of their NZ turnover, hence Entain's silence. Seems pretty straight forward to me.  I know if I had just brought a business off the Government that had 3 racing codes, and spent what they did only to have the same Government then legislate away 20% of your turnover I would be angry and feel cheated. But no, not a whimper from Entain.

 

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14 minutes ago, aquaman said:

Entain get the legislation to protect them from leakage and the monopoly. In return accept the fact that they will lose a significant portion of their NZ turnover, hence Entain's silence. Seems pretty straight forward to me.  I know if I had just brought a business off the Government that had 3 racing codes, and spent what they did only to have the same Government then legislate away 20% of your turnover I would be angry and feel cheated. But no, not a whimper from Entain.

 

So, you think that no dog racing will reduce TAB turnover? I don't and I doubt Entain would either.

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