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TAB offered govt $150 million for online casino licence

Murray Fish

By Murray Fish
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Murray Fish Mentor

Murray Fish

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

Stylised composite of horse racing and casino advertising

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.

4LARYS2_morning_report_internal_cover_ap

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."

RNZ/Reece Baker

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."

ACT Party deputy leader Brooke van Velden

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."

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Bid Collaborator

Bid

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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. 

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Chief Stipe Grand Master

Chief Stipe

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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.

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curious Grand Master

curious

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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.

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westbrew Newbie

westbrew

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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???????

 

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The Centaur Mentor

The Centaur

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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 by The Centaur
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Newmarket Grand Master

Newmarket

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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. 
 

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SLB2.0 Experienced

SLB2.0

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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? 

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Wingman Rising Star

Wingman

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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.

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Newmarket Grand Master

Newmarket

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1 hour ago, Wingman said:

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.

Yes, your right….

But most people in that age bracket I mentioned, have paid off their houses, have done ok in live and all have savings, go on trips, expensive toys etc. 

Younger generation are going to find it harder, more expensive to live, will have less disposable income than us older farts. I hate where gambling is going now, it’s plastered everywhere and I hate the online casino stuff, it’s a big worry. Those with issues can hide away at home 24/7, terrible. 
 

I loved the racing days 35yrs ago, only Aus racing from main venues were n a Weds or Sat, as well as NZ racing. TAB was closed on Sun, as well as Thursdays, reason being most people got paid on this day. But nowadays, we have all this gambling awareness shit, TAB are a joke. 

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Newmarket Grand Master

Newmarket

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Just to add….

I assume TAB are pooping themselves, next year they are gonna lose a heap of turnover once the dogs stop…. and who knows what’s going to happen to gallops and harness in years to come, yes it’s unlikely but who would have thought the dogs would go 10 years ago. 
So maybe that’s the TAB in future years, Sports and Casino… not for me

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Wingman Rising Star

Wingman

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26 minutes ago, Newmarket said:

Those with issues can hide away at home 24/7, terrible. 

Agreed

 

27 minutes ago, Newmarket said:

I loved the racing days 35yrs ago, only Aus racing from main venues were n a Weds or Sat, as well as NZ racing.

Those days are gone. The sad part is with wall to wall racing one can feel the love of the horse diminishing. Even on champions day they were talking about a horses chance but not showing any of its preliminary. Just another name, no more, no less.

I also think Entain/NZ TAB are missing a lot of betting turnover by their minimalist screen detail. They are wanting us to bet on very race but once that race is run they don't give a rat's arse about it, onto the 2nd at Kalgoorlie. In the meantime people like myself who used to have a serious annual turnover are oblivious to the fact that the next race has a guaranteed pool of X. By the time I am aware it is too late and that develops irritation which in turn leads to apathy.

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Murray Fish Mentor

Murray Fish

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32 minutes ago, Wingman said:

Those days are gone. The sad part is with wall to wall racing one can feel the love of the horse diminishing. Even on champions day they were talking about a horses chance but not showing any of its preliminary. Just another name, no more, no less.

re Sunset,  you have pointed out one of the current internal cointroduction's of modern racing, historically 'the punter' had a real deep connection to the Horse.  No longer the case! 

Personally, say back in 80's, the fields would come out and I would 'know' 99%. The more I 'knew' about the horses and that race the more likely I was/am going to wager! Also, 'we' had more time between races/bests to cognitively digest what had happen in  the previous and then have a proper build up to the next! No longer now! Especially so one the 'better' races start to kick in over the ditch!   More and more I has switched off more and more  watching other races at more and more meetings, other wise I just suffer from mental fatigue and often don't have the processing power needed to lock in a bet! THE BAIN OF AGING!

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Newmarket Grand Master

Newmarket

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55 minutes ago, Chief Stipe said:

Yeah na!  NZTR will just run an 8 race programme with 8 horses on the AWT's twice a week.

Haha, you’re a funny man. TAB today is providing 17 dog meetings for punters to splurge on in Aus and NZ. 
I have it on good authority, that once dog racing ceases in NZ, TAB will no longer take betting on any overseas dog racing, so you reckon turnover won’t suffer? Some pretty keen dog followers out there, I can’t stand them but some love them

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