TAB offered govt $150 million for online casino licence

[Murray Fish]

'Not under my watch' - Minister blocks TAB's $150m casino deal

1:43 pm today 

Share this 

• Share on Twitter
• Share on Facebook
• Share via email
• Share on Reddit
• Share on Linked In

Guyon Espiner, Investigative reporter, In Depth

@GuyonEspiner guyon.espiner@rnz.co.nz

Photo: RNZ

The TAB offered a $150 million deal to the government in a bid to secure a lucrative online casino licence, according to documents obtained by RNZ.

The government is auctioning off 15 online casino licences as it regulates online gambling for the first time and local operators fear they'll end up in the hands of foreign owned multinationals and eat into their market share.

The TAB, which is a statutory entity, is barred from offering online casino gambling under current laws.

It wrote to ministers requesting a law change, saying its viability was under threat if it continued to be locked out of the online casino market.

Documents released to RNZ under the Official Information Act show the TAB told Internal Affairs Minister Brooke van Velden that it could offer up a $150 million payment to the government.

TAB offered govt $150 million for online casino licence

Morning Report19 March 2025

Queue

 

But the deal was knocked back.

"Not under my watch," van Velden said when RNZ asked whether she would allow the TAB to seek a licence.

"I don't believe that the government should be involved in casino gambling," she said. "I look at the government trying to address the core services that people need in their lives and providing an online service for casino games is not what I think the government should be involved in."

The TAB made the offer for an "iGaming" licence in writing to van Velden in December 2023.

"It is possible to get a substantial capital payment to the government from selling the rights to iGaming in an exclusive market. We estimate that there is a $150 million capital payment available for an exclusive market where there are one or two providers," the TAB said.

The deal would "meet the government's fiscal ambitions," the TAB told van Velden.

"The operator could pay approximately NZ$150m upfront for the right to operate the business under a 10-year licence."

The TAB declined to be interviewed about the deal but it's understood its proposal could have seen the money paid directly by the TAB or as part of a deal with an international operator.

In a statement to RNZ, Racing Minister Winston Peters said he had "received correspondence" regarding the TAB's proposal, but he would not change the law to allow the TAB to run an online casino.

"Casino products are fundamentally different to wagering products and the Minister has advised TAB NZ of his expectation that it retains its focus on sports and racing."

Racing Minister Winston Peters said he would not change the law to allow the TAB to run an online casino Photo: RNZ / REECE BAKER

But the TAB is not giving up and said in a statement to RNZ that it "would like to be considered for a licence and has asked for legislation to be reviewed".

Millions in cash for TAB when online monopoly law passes

Peters has legislation before Parliament - amendments to the Racing Industry Act - which will extend the TAB's monopoly for sports and race betting to the online environment.

The TAB refers to the online monopoly as the "legislative net" and documents released to RNZ under the Official Information Act, show how valuable this is for the TAB and its multi-national business partner Entain.

In 2023 the TAB entered into a 25-year partnership with UK betting company Entain, which guaranteed $900 million for the racing industry over five years and a 50-50 revenue sharing deal.

In one email to van Velden, the TAB said it wanted the online monopoly in place by April 2024 because it was losing $200 million a year to overseas operators.

The TAB said it would get direct payments from Entain when the law, embedding its monopoly for online sports and racing betting, was passed.

"A delay in the legislative net is costing TAB NZ approximately $1.5m per month in payments from Entain - funds that will never be recouped," it said. "There is also (the) significant downstream effect of Kiwis aged 18 to 35 being acquired by offshore operators at a greater rate than the TAB."

The TAB told van Velden that the law change would see big cash payments from Entain.

"We are seeking enactment of the legislative net from April 2024. TAB NZ will immediately receive an additional $100 million from Entain and an increase in minimum guaranteed payments of at least $15million per year from this law change, delivering a material funding uplift to both our racing and sporting partners."

Internal Affairs Minister Brooke van Velden said she did not believe that the government should be involved in casino gambling. Photo: RNZ / Angus Dreaver

An Internal Affairs briefing to Peters, written in March 2024 and released to RNZ under the OIA, says it could be a bad look granting an online monopoly to the TAB, given its relationship with Entain.

"When the land-based monopoly for TAB NZ was established, it was an entirely not-for-profit entity that distributed its profit to the racing and sports codes," the briefing said.

"Since the Entain partnership was entered into in 2023, there is now a 50-50 split with a 'for profit' offshore online operator. Providing a monopoly to TAB NZ could be perceived as providing a global 'for profit' gambling provider a monopoly in New Zealand while sending profits offshore."

The briefing said this was made worse by the fact that Entain was facing compliance breaches in Australia "This risk is compounded by the perception issues Entain is facing due to its noncompliance with anti-money laundering (AML) requirements in Australia."

Despite those concerns Peters introduced legislation extending the TAB's sports and racing betting monopoly to the online environment last year and it is expected to pass into law by May.

TAB gets to keep its pokies

The TAB will also get to keep its pokie machines, despite a move by the previous Labour government to remove its Class 4 licence to operate pokies.

The previous Labour government said that in return for allowing the TAB to have an online monopoly for sport and racing betting it would have to give up its Class 4 licence which allows it to operate its 415 pokie machines.

In a December 2023 email to van Velden the TAB pushed back on the move, saying it would cost the TAB $18.5 million.

"The previous government announced an intention to wind-down TAB NZ's Class 4 gaming operation which was not agreed by TAB NZ's board or management. TAB NZ does not support such a change and we seek to retain our Class 4 gaming licence."

It said it was a "gold-standard Class 4 gaming operator" and was being "unnecessarily restricted" from rolling out its pokies to venues other than standalone TABs.

The TAB has won that argument, with Peters telling RNZ that the TAB can hold on to its pokies.

"TAB NZ has proven that it can effectively use Class 4 proceeds to fulfil its commitments to sports organisations and the racing industry and the Minister does not see any need to interrupt this revenue stream."

[Bid]

Just dumb imo, people are going to play the online casinos, why not clip the ticket and the money stay in NZ. 

 I occasionly play a bit of online poker,  I would much rather it was through a NZ owned site and money going back here. 

[SLB2.0]

Having an online casino monopoly is NOT good for Kiwi punters. I'm glad they rejected the bid.

[Chief Stipe]

What it does show is McAnulty was shifty and that ENTAIN were promised more than they are going to get.  Probably the biggest reason for the writedown.  However I don't see why ENTAIN can't have one of the licenses as long as it isn't a monopoly license.  At least TABNZ will retain their Pokies because they are going to need every source of revenue they can find.

[curious]

16 minutes ago, Chief Stipe said:

What it does show is McAnulty was shifty and that ENTAIN were promised more than they are going to get.  Probably the biggest reason for the writedown.  However I don't see why ENTAIN can't have one of the licenses as long as it isn't a monopoly license.  At least TABNZ will retain their Pokies because they are going to need every source of revenue they can find.

Agree. No reason Entain can't apply for one of the available licences but don't think NZTAB should and certainly, the government should NOT be entertaining any sort of commercial arrangement with respective licencees in granting those licences.

[Chief Stipe]

1 hour ago, curious said:

the government should NOT be entertaining any sort of commercial arrangement with respective licencees in granting those licences

A bit naive of TABNZ to actually make the approach.

[westbrew]

I would be very surprised if Entain (UK) did not gain one of the 15 Licenses when they are handed out in Feb of 2026. Get ready to have your email invaded with ads for the Entain casino, as the TAB or should i say Entain NZ privacy policy which everyone who has a TAB account has signed up to allows Entain NZ to share your data with Entain Aust who than can share it with the rest of the Entain group.

Also check out the TAB NZ financial accounts for 23/24 racing year which are now on TAB website www.tabnz.org

very interesting reading income of 160m from the partnership hmmmm in 3 years 50% of that is only 80m, guess there is alot of growth to come in racing and sports wagering in next 3 years???????

 

[mikeynz]

9 minutes ago, westbrew said:

 guess there is alot of growth to come in racing and sports wagering in next 3 years???????

 

Wouldn't bet on it.

[The Centaur]

From a business logistical sense a TAB casino licence is a no brainer. All around the world there are racetracks and bookies getting into casino's. Some of the government ministers have links to the Sky City casino group therefore heavily conflicted.

Racing administrators should get behind the proposal and then exploit it to full advantage.

https://en.wikipedia.org/wiki/Racino

Edited 2 hours ago by The Centaur

[Newmarket]

TAB want control of everything…. I have the same feel when you’re playing Jenga and it starts to wobble before it collapses.

I know many punters, a couple of weeks ago a dozen all between 40yrs and 65yrs discussed the TAB at the club over a pint.

Of the 12, 10 had a TAB account  that they used most weeks, 6 of the 10 had Aus account, 3 of 10 had Betcha account. Of the 6 that had Aus account, all included myself stated that the money they now spent in Aus…. WOULD NOT BE SPENT AT THE NZ TAB…. It seemed all had their preferences, some only used Tab for bonus offers, extra large pools, or Quads at local meetings. 
Betcha spend was bonus offers and mainly sport, Aus accounts for bonus offers. The 2 that didn’t have accounts hardly bet now, due to their local TAB closing.

This is going to be a disaster, punters are sick of being told where they can gamble, I can shop anywhere in the world? TAB started with a hiss and a roar, offering all sorts of promos, once geo blocking comes in, will be like the 90s, punters getting screwed, no promotions, with the TABs take it or leave it attitude. I am around 60yrs, have bet most weeks since I was 18yrs, but for once, if and when geo blocking comes in, I will reduce my spent, or stop all together. Maybe they will offer me a deposit match every few weeks, might take it, might not, just not bothered anymore. 
 

[SLB2.0]

38 minutes ago, The Centaur said:

From a business logistical sense a TAB casino licence is a no brainer. All around the world there are racetracks and bookies getting into casino's. Some of the government ministers have links to the Sky City casino group therefore heavily conflicted.

Racing administrators should get behind the proposal and then exploit it to full advantage.

https://en.wikipedia.org/wiki/Racino

Which racetracks around the world have online casinos? 

[Wingman]

1 hour ago, Newmarket said:

This is going to be a disaster, punters are sick of being told where they can gamble, I can shop anywhere in the world? TAB started with a hiss and a roar, offering all sorts of promos, once geo blocking comes in, will be like the 90s, punters getting screwed, no promotions, with the TABs take it or leave it attitude. I am around 60yrs, have bet most weeks since I was 18yrs, but for once, if and when geo blocking comes in, I will reduce my spent, or stop all together. Maybe they will offer me a deposit match every few weeks, might take it, might not, just not bothered anymore. 

Most 50 to 60yo punters feel your pain popeye however we are not the demographic they are interested in. Many people see racing as a sunset industry, yet there is too much investment worldwide for it to fade fast. Where it all ends up though'  heaven only knows but short term if one can find areas that keep you interested than that is where to focus and stuff the rest.