A $US187 billion monster – The looming challenge as over 50 crypto-betting platforms offer Australian and New Zealand racing

[Murray Fish]

A $US187 billion monster – The looming challenge as over 50 crypto-betting platforms offer Australian and New Zealand racing

The sheer size of the unregulated gambling market and the fact that over 50 crypto operators are willing to offer markets on Australian and New Zealand racing present a huge integrity challenge to local racing authorities, a new report has found.

By Bren O'Brien 

● 

 

 

 

A new report, published by the International Federation of Horseracing Authorities, reveals the number of crypto-casinos operating on Australian and New Zeland racing. (Photo: Getty Images)

An internationally commissioned report has found betting on Australian and New Zealand horse racing is accessible across over 50 cryptocurrency-enabled platforms globally, presenting major threats to the integrity and funding of the industry.

The report was published by the International Federation of Horseracing Authorities and outlines the challenges faced by integrity authorities in monitoring bets in the rapidly evolving global wagering landscape.  

It was led by Dr Elliot Forbes, as well as being a member of the IFHA Council on Anti-Illegal Betting and Related Crime, is also the chief executive of the Racing Integrity Board.  

As well as examining the integrity landscape in New Zealand, where betting by Kiwis accounts for only one-third of the combined Australasian betting on New Zealand races, the report also examined the global impact of illegal offshore betting.

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Specifically, the report analysed deposits from the largest offshore crypto casinos and sportsbooks and found that across a 12-month period there was more than $US187 billion in identifiable crypto deposits across 4.4 million combined customers.

It also found that seven of the top 10 crypto casinos in the world now offer racing as a product and four of the top 5 operate on Australian and New Zealand racing.

The IFHA study detailed that Australian and New Zealand racing content now appears almost universally on over 50 of these grey market-operated sites, which are licensed in places like Curacao, Anjouan (Comoros), Estonia, Costa Rica, British Virgin Islands and St Vincent.

“Offshore operators offer fixed-odds and derivative products on New Zealand races that do not exist domestically,” the NZ-focused report said.

“These operators also advertise sign-up inducements such as deposit matches and bonuses with rollover requirements no longer legal in regulated domestic markets.

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“Alongside the large crypto-enabled sportsbooks, New Zealand races are also offered on illegal betting exchanges, crypto casinos and sports prediction markets, alongside political events and esports.”

Forbes said the threat for a smaller jurisdiction like New Zealand was clear.

“It is a fundamentally parasitic model: they extract value from New Zealand and other jurisdictions’ racing product while contributing nothing to the integrity systems or financial framework that sustain the sport,” he said.

The report also raised concerns about player safeguards and consumer protections, while highlighting the integrity challenges of monitoring betting patterns in regulated environments.

“For bad actors, the opportunities are considerable. Crypto-based racebooks and exchanges, with anonymous wallets, rapid settlement and opaque ownership structures, are attractive to individuals seeking to move or disguise illicit activity,” it said.

“When betting takes place in environments with no reporting obligations, the risk of corrupted outcomes being used for money laundering increases significantly.”

Forbes said the RIB was committed to continuing to map and monitor offshore coverage, engaging with more jurisdictions to seek integrity agreements, information sharing, and supporting policy development.

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“From a New Zealand perspective we intend to strengthen our domestic oversight, build a clearer picture of offshore activity, advocate for coherent policy settings and contribute meaningfully to international cooperation,” he said.

“We will continue working with policy-makers, sporting bodies, regulators and government agencies to ensure our collective capability keeps pace with the environment.

“In a wagering landscape that is more complex and fast-moving than at any point in recent memory, that foundation is essential to protecting the integrity and financial sustainability of New Zealand racing.”

A report late last year commissioned by Responsible Wagering Australia’s into the growth of the illegal offshore gambling market revealed that 14 per cent of betting on racing by Australians is with unlicensed overseas operators.

[Murray Fish]

2 minutes ago, Murray Fish said:

“It is a fundamentally parasitic model: they extract value from New Zealand and other jurisdictions’ racing product while contributing nothing to the integrity systems or financial framework that sustain the sport,” he said.

hence,  'our' lot will just increase  their take out % from the locals the still have betting with them! 

[curious]

38 minutes ago, Murray Fish said:

hence,  'our' lot will just increase  their take out % from the locals the still have betting with them! 

That is their usual strategy and has been for a long time when they should have offered a competitive model.

[Chief Stipe]

1 hour ago, curious said:

That is their usual strategy and has been for a long time when they should have offered a competitive model.

FFS our can you offer "a competitive model" when you are up against freeloaders!!

[curious]

Why do you say that THEY the freeloaders? Isn't it the NZTAB that freeloads off the taxpayer? And has a monopoly in NZ?

[Shab]

46 minutes ago, Chief Stipe said:

FFS our can you offer "a competitive model" when you are up against freeloaders!!

But they’re freeloaders as well. Heard of sports betting?

[curious]

Bet monitoring in a fast-changing wagering landscape: a New
Zealand case study
By Dr Eliot Forbes, Chief Executive, Racing Integrity Board, New Zealand; Member,
IFHA Council on Anti-Illegal Betting and Related Crime
The global wagering environment is undergoing a profound shift. The current landscape
requires us to extend our integrity focus beyond domestic borders to an environment
that is international, multi-jurisdictional and increasingly crypto-denominated. Legal,
domestic operators now compete with a rising tide of illegal online operators, including
crypto racebooks, illegal exchanges and prediction markets. Such operators free-ride
on racing’s product and present a corrosive threat to the sport’s integrity and its
commercial foundations.
For regulators and sporting bodies this is not an abstract concern. Bet monitoring has
long been a core integrity tool, but we have had to strengthen this capability and broaden
its lens to match a market that is evolving faster than legacy systems were designed for.
This article uses New Zealand as a case study in how a small jurisdiction is challenging
itself to respond to these challenges, while recognising that no single organisation has
all of the answers.
A changing domestic landscape
New Zealand’s racing and sports betting market is structured around a single licensed
wagering operator. TAB NZ holds the exclusive right to offer betting to New Zealand
residents. The Racing Integrity Board (RIB) was established to deliver integrity
services, providing independent oversight of all three racing codes (thoroughbred,
harness and greyhound), including responsibility for bet monitoring.
An important feature of our position is geography. While domestic wagering is TAB
NZ’s primary focus, we sit on the doorstep of Australia, one of the most vibrant,
competitive and innovative wagering markets in the world. New Zealand-based
wagering accounts for only around one-third of the combined Australasian betting on
New Zealand races. We have therefore always needed to keep one eye on the Australian
market to understand how cross-border activity affects the integrity of our own racing.
Over the last three years the domestic framework has evolved. Through a 25-year
strategic partnership, TAB NZ appointed Entain to deliver wagering to the New
Zealand market. Entain has modernised the product offerings and upgraded the
technology systems. For the RIB this has been an opportunity to work with a partner
that operates across different global markets and to deepen our understanding of how
New Zealand-facing activity sits within a wider regional picture.
In July 2025 the New Zealand Government introduced legislation to establish a
domestic online wagering monopoly, consolidating all licensed online wagering within
a single onshore operator and creating a clearer environment for monitoring domestic
12
activity. The scale of Australia-based wagering on New Zealand racing, however,
means it remains essential to maintain visibility of activity with Australian operators.
Our philosophy: Five core elements of wagering integrity
Our philosophy begins with five core elements:
1. Intent and the regulatory framework
Bet monitoring is a specific statutory responsibility and we approach it with
deliberate intent. This includes developing a deep understanding of the
operating environment, recognising the tight correlation between wagering and
racing integrity and ensuring that regulatory frameworks and associated
arrangements are effective.
2. Capability and expertise
Effective integrity oversight relies on skilled people. Betting analysts, stewards
and investigators bring complementary expertise enabling us to interpret market
signals in the context of how races are run, how participants behave and how
wagering markets respond.
3. Data as a strategic asset
We treat data and the systems that support it as strategic assets. How
information is accessed, structured and managed directly affects the quality of
insight we can draw. Modern analytical tools, including emerging AI-enabled
technologies, are also broadening and automating the ways in which data can
be examined for anomalies and unusual patterns.
4. Systems-thinking
Integrity risk can emerge across ownership structures, training environments,
stable and jockey behaviour, betting markets and information channels.
Understanding how these elements interact, including how behaviour in one
part of the ecosystem can influence another, is essential to assessing risk
coherently and proportionately.
5. Feedback and learning
Our approach is anchored in continuous improvement. Each alert, review and
investigation provides insight that sharpens our focus, strengthens our
monitoring capability and enhances overall organisational performance. We
adopt an intentional learning philosophy so that, as far as practicable, our
integrity effectiveness evolves in step with the dynamic nature of the wagering
environment.
13
Integrated Wagering Integrity Operations
Our bet monitoring activities are built around coordinated internal workflows involving
betting analysts, stewards and investigators. Working in partnership with Entain and
guided by clear operational protocols, our approach is proactive and combines early
preparation, real-time surveillance and routine post-race review across all three codes.
Before each meeting, the betting analyst distributes an initial assessment to relevant
stewarding teams highlighting key market movements, high-risk races, notable bets
placed in early markets and emerging patterns. The responsible steward reviews this
information, adds relevant racing context such as stable knowledge and participant
connections and ensures all integrity teams begin the day with a shared understanding
of the key risks.
During the race meeting, analysts monitor the markets continuously and issue alerts
when certain bets (a $50 bet from one person may be highly significant, whereas as a
$10,000 bet on the same runner from another person may be no cause for concern),
wagering liabilities, timing or market behaviour warrant closer attention. Alerts are
acknowledged by the stewards immediately and they assess the race with specific
reference to the information provided. Their observations focus on racing patterns,
opportunities afforded to runners and whether any further inquiry is necessary.
Where a matter requires deeper scrutiny, it is escalated to the betting analyst and
principal investigator. This ensures that concerns arising from either the race or the
market can progress seamlessly into formal casework as needed. Post-race findings also
feed back into our risk indicators, sharpening both stewarding practice and analytical
settings.
Illegal offshore betting on New Zealand racing
Alongside our domestic work, we are extending our attention to offshore activity
involving New Zealand racing. Recent analysis from Responsible Wagering Australia
(RWA)1 estimates that despite legislation and regulatory controls that aim to prohibit
offshore gaming and wagering, illegal or ‘grey market’ offshore operators now account
for about 36 per cent of Australia’s total online gambling market, a share that has
doubled since 2019. It would be optimistic to assume that New Zealand is insulated
from similar forces.
Our analysis of crypto deposits into major sportsbooks provides some sobering insights.
Blockchain transparency allows aggregated crypto-deposit data to be extracted from
the largest offshore crypto casinos and sportsbooks. Over the past twelve months, the
top operators globally recorded more than US$187 billion in identifiable crypto
deposits and seven of the ten largest platforms now offer racebook functionality (Figure
1 - Crypto Deposits).
14
As this dataset excludes all fiat-currency deposits, these totals represent only a portion
of total deposits. Even if only one per cent of wagering on these platforms relates to
horse racing, this would imply at least USD 1.87 billion in crypto betting activity takes
place on racing across this cohort of operators alone.
Figure 1:Crypto Deposits2
The RIB has analysed the crypto racebook market over the past year. More than fifty
leading crypto-enabled brands, licensed in pseudo-regulatory environments, now
accept bets on New Zealand racing, alongside offerings of racing content from other
major international jurisdictions (Figure 2). They do not pay product fees, do not share
integrity data, offer limited or no consumer protections and are unlikely to adhere to
anti-money-laundering obligations.
Many jurisdictions may be unaware their product is being wagered on through these
channels, receiving neither product fees nor integrity data. These operators rely on ‘grey
market’ licensing regimes such as Curaçao, Anjouan and Costa Rica, where licensing
confers the appearance of legitimacy while imposing minimal integrity or reporting
obligations.
Offshore operators offer fixed-odds and derivative products on New Zealand races that
do not exist domestically. These operators also advertise sign-up inducements such as
deposit matches and bonuses with rollover requirements no longer legal in regulated
domestic markets. 3 Alongside the large crypto-enabled sportsbooks, New Zealand
races are also offered on illegal betting exchanges, crypto casinos and sport prediction
markets, alongside political events and esports.
15
It is a fundamentally parasitic model: they extract value from New Zealand and other
jurisdictions’ racing product while contributing nothing to the integrity systems or
financial framework that sustain the sport.
Figure 2: Racing markets offered by offshore operators, as at November 2025
16
Integrity risks in an evolving global environment
Offshore environments often amplify harm-related risks, as highlighted in the IFHA
Council’s August 2025 Responsible Gambling-themed bulletin4, and these conditions
shape the broader context in which the offshore wagering market operates. We are
mindful that the lack of safeguards, along with the incentives used in these markets, can
influence online consumer behaviour.
New Zealanders wagering offshore, even when it is not linked to criminal activity, still
undermine the integrity of the system and the industry’s funding mechanisms and they
also expose themselves to greater consumer risks. When a significant share of wagering
occurs offshore, the RIB sees far less of the market signal, weakening the situational
awareness needed for effective oversight.
Offshore operators target younger customers through social media, streaming platforms
and influencer channels. When initial engagement with racing occurs in unregulated
environments that operate without integrity expectations, it becomes more difficult for
legitimate channels—or the sport itself—to build long-term, trusted relationships.
Concerningly, consumers report difficulty in determining whether an online operator is
legitimate or not.
For bad actors, the opportunities are considerable. Crypto-based racebooks and
exchanges, with anonymous wallets, rapid settlement and opaque ownership structures,
are attractive to individuals seeking to move or disguise illicit activity. When betting
takes place in environments with no reporting obligations, the risk of corrupted
outcomes being used for money laundering increases significantly.
The road ahead
In response to these challenges, our ongoing work includes:
1. Mapping offshore coverage
We are building a clearer view of where New Zealand racing appears offshore,
monitoring key markets and mapping the crypto-deposit activity of major
operators to ensure we are properly informed about the scale and profile of this
activity.
2. Seeking greater transparency
We are pursuing opportunities to secure greater transparency with operators that
are lawful in their home jurisdictions. Where integrity agreements are possible,
our position is clear: operators who profit from New Zealand racing should
contribute to the sport by protecting the product they use. Where broadcast or
wagering rights are granted to third-party agencies, we expect full visibility of
downstream distribution chains, including clarity around the beneficial entity
and the jurisdiction which the operator is licensed.
17
3. Supporting policy development
We provide informed support to broader domestic policy work including
consideration of tools such as payment interdiction and the targeted disruption
of illegal marketing. Recognising the close relationship between online gaming
and racebook offerings, the New Zealand Government’s intention to grant
online gaming licences reinforces the need for officials, regulators and policy-
makers to be well informed about the crossover between these products and the
integrity risks that can arise across both.
4. Enhancing cooperation
Meaningful progress requires coordination across agencies. Domestically, this
includes policy bodies, financial intelligence units, law enforcement agencies,
racing and sporting codes and licensed wagering operators. For the RIB, this
means investing in relationships and systems that enable effective information
sharing and ensuring our local partners and stakeholders understand the
evolving threat landscape.
5. Strengthening information-sharing
We are deepening our pathways with international partners, including the IFHA
and its Council on Anti-Illegal Betting and Related Crime, to share knowledge,
exchange intelligence and raise specific concerns about suspicious activity or
operators.
Conclusion
We recognise that New Zealand is one small jurisdiction within a vast and rapidly
evolving wagering environment. Wagering and technology are advancing quickly and
artificial intelligence will accelerate that trend. AI is already helping analysts synthesise
data and identify anomalies but it will also be used by sophisticated bettors and
inevitably by those who test boundaries. As betting activity moves across borders and
platforms including crypto-based channels, traditional monitoring approaches must
adapt and evolve. The task ahead requires more sophisticated automated online
monitoring, sharper intelligence, deeper cooperation and fresh strategies.
From a New Zealand perspective we intend to strengthen our domestic oversight, build
a clearer picture of offshore activity, advocate for coherent policy settings and
contribute meaningfully to international cooperation. We will continue working with
policy-makers, sporting bodies, regulators and government agencies to ensure our
collective capability keeps pace with the environment.
In a wagering landscape that is more complex and fast-moving than at any point in
recent memory, that foundation is essential to protecting the integrity and financial
sustainability of New Zealand racing.

1 Responsible Wagering Australia. “Illegal Offshore Gambling: A Growing Threat”. Australia Offshore Market Analysis
November 2025
2 Tanzanite Analytics (https://tanzanite.xyz/analytics)
3 For example, under Australia’s National Consumer Protection Framework for Online Wagering (NCPF), wagering service
providers are prohibited from offering or advertising inducements intended to encourage individuals to open a betting account.
This includes sign-up bonuses, free bets, matched deposits, bonus codes, and similar offers. These restrictions apply across all
forms of public advertising and digital marketing.
4 Purbrick, Martin. “From Regulation to Risk: Illegal Markets and the Inadvertent Growth of Gambling Harm by Over Regulation
of Legal Markets.” IFHA Council on Anti-illegal Betting and Related Crime Quarterly Bulletin, August 2025.