Brodie Posted March 26, 2023 Share Posted March 26, 2023 (edited) It is a pretty good bet to say that the NZ TAB will be outsourced to one of 3 overseas betting agencies if McAnulty gives his approval in the next week or two! Initially apparently they are going to retain all current employees for a year but then many will get the DCM! Will this help harness racing to survive or will it be the death knell for it? Hopefully it will be for the good of the industry as the TAB have been in the whole doing a less than average job. They have suits that are being paid massive salaries and on the face of it unjustifiably, so this is going to change you would think if it is being run from overseas. I can see the new owner wanting to slash costs and wanting punters to be betting on account thru their phones or computer with no betting operators. They will no doubt be wanting more sports betting etc. as that is where the growth is from the young ones rather than racing! Will the new owner allow punters to offload the amount they want to or are they going to KNEECAP punters that they do not want?? Interesting times indeed! Edited March 26, 2023 by Brodie 1 Quote Link to comment Share on other sites More sharing options...
Nowornever Posted March 26, 2023 Share Posted March 26, 2023 1 hour ago, Brodie said: It is a pretty good bet to say that the NZ TAB will be outsourced to one of 3 overseas betting agencies if McAnulty gives his approval in the next week or two! Initially apparently they are going to retain all current employees for a year but then many will get the DCM! Will this help harness racing to survive or will it be the death knell for it? Hopefully it will be for the good of the industry as the TAB have been in the whole doing a less than average job. They have suits that are being paid massive salaries and on the face of it unjustifiably, so this is going to change you would think if it is being run from overseas. I can see the new owner wanting to slash costs and wanting punters to be betting on account thru their phones or computer with no betting operators. They will no doubt be wanting more sports betting etc. as that is where the growth is from the young ones rather than racing! Will the new owner allow punters to offload the amount they want to or are they going to KNEECAP punters that they do not want?? Interesting times indeed! No! Word on the street is that Entain is the main company in line for winning the bid. Your kneecapping punters is about to become a bullet in the head if they do indeed get the nod. Quote Link to comment Share on other sites More sharing options...
Brodie Posted March 26, 2023 Author Share Posted March 26, 2023 (edited) 2 hours ago, Nowornever said: No! Word on the street is that Entain is the main company in line for winning the bid. Your kneecapping punters is about to become a bullet in the head if they do indeed get the nod. Interesting, never heard of this Entain outfit before, but googled them! You are probably right that I will be culled if they do get the nod . It could will be the death knell for harness racing in NZ as well because they will be ruthless by the look of it and concentrate more on the Sports. Plenty of people will be outside the WINZ office looking for work which is what the Reserve Bank Governor is wanting! Anyway “The Brodster” made hay while the sun shone and all haymakers eventually put their feet up. Back to the SLEEPERS I would say lol Edited March 26, 2023 by Brodie Quote Link to comment Share on other sites More sharing options...
Nowornever Posted March 27, 2023 Share Posted March 27, 2023 14 hours ago, Brodie said: Interesting, never heard of this Entain outfit before, but googled them! You are probably right that I will be culled if they do get the nod . It could will be the death knell for harness racing in NZ as well because they will be ruthless by the look of it and concentrate more on the Sports. Plenty of people will be outside the WINZ office looking for work which is what the Reserve Bank Governor is wanting! Anyway “The Brodster” made hay while the sun shone and all haymakers eventually put their feet up. Back to the SLEEPERS I would say lol Nearly time for the instant ban for any Kiwi punters that make even a small amount of money. 27 March 2023 TAB NZ selects Entain as preferred partner for 25-year strategic arrangement subject to Ministerial approval As a statutory entity and the sole holder of a betting licence in New Zealand, TAB NZ is committed to materially boosting the fortunes of racing and sport, delivering a world-class customer experience and enhancing its responsible gambling and harm minimisation efforts. For some time, TAB NZ has faced increasing competition, rising costs, capital constraints as well as other challenges, which have impacted its ability to deliver adequate funding to racing and sports. These challenges are expected to increase. In order to achieve TAB NZ’s objectives and growth ambitions, Board and management considered that it was in the best interest of TAB NZ and its stakeholders to explore a strategic partnering arrangement with a world-class international wagering operator to deliver TAB NZ’s wagering and broadcast functions. Over the past six months, TAB NZ has engaged with a range of world-class operators in relation to a strategic partnering arrangement and received several compelling proposals. It has been supported through the process out of Australia by Barrenjoey Capital Partners as sole financial adviser, Allens as principal legal advisers. Chapman Tripp provided legal advice in New Zealand. Following a detailed assessment of a number of proposals which were received, TAB NZ has today announced that it has selected Entain as its preferred partner for a 25-year strategic partnering arrangement. The proposed strategic arrangement remains subject to Ministerial approval. The specific terms of the arrangement remain commercially confidential until approval is granted. Entain was selected as the preferred partner based on a wide range of criteria, including operational expertise, cultural alignment with TAB NZ and the commitment of the partner to uplifting TAB NZ’s harm minimisation and responsible gambling efforts. TAB NZ Chief Executive Officer Mike Tod said today’s announcement signals an important step in boosting the fortunes of racing, sport and communities for a generation. “TAB NZ faced an uncertain future in a David and Goliath battle with international wagering operators and a lack of capital to both compete and meet its potential. Today’s announcement is a significant milestone toward the transformation of TAB NZ and those who rely upon its growth and long-term success. In the absence of a strategic partnering arrangement, TAB NZ would be further cutting distributions in the next financial year,” Mr Tod said. “This proposed strategic arrangement with Entain provides a certain, material and immediate uplift in the funding TAB NZ can provide New Zealand racing and sports ensuring that these industries not only survive, but thrive. It will allow us to greatly improve our harm minimisation and responsible gambling efforts, and provides immediate job security and long-term job creation in New Zealand to the advancement of our nation at large. “Entain is a global and world-class operator who will deliver industry best practice and an elevated and safe experience for New Zealand punters, as well as racing and sports fans. We are deeply excited by their commitment to New Zealand and this opportunity.” TAB NZ Chairman Mark Stewart said the Board is unanimously supportive of the proposed strategic partnering arrangement. “Management and the Board ran a world-class and robust process that attracted the interest of some of the best wagering operators in the world and have delivered a result that will benefit all our stakeholders for a generation. It’s a credit to our Chief Executive Officer and his team for the result they have delivered and to our stakeholders in Racing and Sport for the way in which they have supported this process,” Mr Stewart said. Entain’s Chief Executive Officer - Australia, Dean Shannon, said the company was excited to be selected by TAB NZ as its preferred partner. “This is a unique opportunity to shape the future wagering experience for customers and to support New Zealand’s racing and sporting industries. We have a compelling vision for the future of TAB NZ, which includes a renewed focus on innovation and technology, and a long-term commitment to all racing, sport and industry stakeholders,” Mr Shannon said. “As the partner of choice for New Zealand, we have made a firm commitment to employment continuity for at least 24 months, with the team at TAB NZ essential to our future vision and growth of the market in New Zealand. We applaud TAB NZ for how the process has been run to date and we look forward to working with all stakeholders on necessary approvals to finalise the transaction.” Overview TAB NZ today announces that it has selected Entain as its preferred partner for a 25-year strategic partnering arrangement. The proposed strategic arrangement enhances the viability of New Zealand racing and sport, will materially boost the fortunes of both and has the support of key stakeholders, including the three racing codes and Sport NZ. If approved by the Minister for Racing, today’s announcement will deliver a key recommendation from the Messara Report (2018) that was provided to the New Zealand Government as a critical change to support the long-term viability of the Racing industry. Ministerial Approval The proposed strategic arrangement remains subject to Ministerial approval. TAB NZ and Entain look forward to working collaboratively with the Minister’s office in relation to the proposed strategic arrangement. Key benefits of proposed strategic arrangement with Entain Guaranteed funding to TAB NZ of greater than NZ$1.0 billion in the first five years to support the revitalisation of the racing industry with material upside over the life of the arrangement. Significantly strengthens the financial position of TAB NZ today by facilitating an upfront payment to racing and sports, in addition to an increase in future payments over time relative to TAB NZ’s current trajectory of funding reductions Additional and significant upfront payment should legislation be enacted that prevents unlicensed offshore operators from providing wagering services in New Zealand. Over the 25-year arrangement, the proposed terms have the potential to deliver a total uplift in payments to racing and sports of c.NZ$5.0 billion relative to the counterfactual of TAB NZ’s declining commercial performance due to intense international competition and historic under investment in the business in key areas like retail, technology, broadcast and operations Investment and uplift in TAB NZ’s harm minimisation and responsible gambling efforts A 24-month employment guarantee for TAB NZ’s employees, with new job opportunities for Kiwis as the New Zealand market and Racing and Sports industries grow A commitment to retain and refresh the TAB NZ brand A commitment to provide a world-class and industry best practice wagering, retail and broadcast offering to Kiwi customers as well as racing and sports fans Additional support to the Racing industry, including a NZ$10.0 million sponsorship of an enhanced racing carnival and the establishment of other community linked initiatives Strong racing and sports industries are expected to drive significant economic growth and see New Zealand communities, as well as the nation at large benefit materially, including the creation of new roles both directly and indirectly About Entain Entain plc (LSE: ENT) is a FTSE100 company and is one of the world’s largest sports- betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports brands include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet, Sports Interaction and SuperSport; Gaming brands include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. The Group owns proprietary technology across all its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis. The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and iGaming in the US. Entain provides the technology and capabilities which power BetMGM as well as exclusive games and products, specially developed at its in-house gaming studios. The Group is tax resident in the UK and is the only global operator to exclusively operate in domestically regulated or regulating markets operating in over 40 territories. Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AA rated by MSCI. The Group has set a science-based target, committing to be carbon net zero by 2035 and through the Entain Foundation supports a variety of initiatives, focusing on safer gambling, grassroots sport, diversity in technology and community projects. For more information see the Group’s website: www.entaingroup.comNote for editors: TAB NZ and Entain will not be commenting further on the proposed strategic partnering arrangement until the outcome of the Ministerial Approval Process. Quote Link to comment Share on other sites More sharing options...
Brodie Posted March 27, 2023 Author Share Posted March 27, 2023 Well if our esteemed racing minister, bully McAnulty approves them then yes my days in the sun are over lol. More time to enjoy life without the time spent doing the homework. Ladbrokes Australia owned by this outfit, stopped me from getting a bet on harness racing after only a few months! Tried to speak to the Socalled BOOKIES department over there and they would not even speak to me lol. All the receptionist would say is that she couldnt put me thru to anyone to talk to about wagering! Just more BS that has been entrusted upon all of us in recent years. They arent going to be here for the betterment of racing in NZ, once they are in they will be ruthless. David Ellis on TV1 was all for this takeover, he isnt speaking as a punter and at the end of the day, punters are the only way racing is going to be viable! 1 Quote Link to comment Share on other sites More sharing options...
the galah Posted March 27, 2023 Share Posted March 27, 2023 9 hours ago, Brodie said: Well if our esteemed racing minister, bully McAnulty approves them then yes my days in the sun are over lol. More time to enjoy life without the time spent doing the homework. Ladbrokes Australia owned by this outfit, stopped me from getting a bet on harness racing after only a few months! Tried to speak to the Socalled BOOKIES department over there and they would not even speak to me lol. All the receptionist would say is that she couldnt put me thru to anyone to talk to about wagering! Just more BS that has been entrusted upon all of us in recent years. They arent going to be here for the betterment of racing in NZ, once they are in they will be ruthless. David Ellis on TV1 was all for this takeover, he isnt speaking as a punter and at the end of the day, punters are the only way racing is going to be viable! You have been saying for years now that the nz tab ipolicy of discouraging winning punters from investing would one day cost the industry dearly. At the time you first said that i wasn't convinced,but from speaking to others and my own experiences , now believe you were right all along. for example i know someone(not me) who the tab's takeout of money invested through the TOTE would have been somewhere around $350,00 to $400,000 per annum not that long ago,which would have gone to the industry.(mostly harness). Then the tab had the bright idea not that long ago,well because this person might be making something like $80,000 a year on the ff,,the way to reduce that was to introduce an algorithm that would reduce the ff odds pay out and save the tab money because of that. The person was only making a small profit on the tote, but the tab gives punters rebates on % of turnover which means they in effect were making a reasonable profit from the tote investments.. What the TAB ignore is winning punters on the ff use their profit from ff betting to fund their betting on the tote..They also use their profits to fund investment in other forms of the industry. So the result of the tab doing everything they can to discourage this punter,the tab saved about $150,000 but lost the $400,000 in % of $ invested.on the tote. Now anyone with any sense would realise that the tab ,by their own policy,have reduced their income by about $250,000 per annum from just that one punter. That $250,000 could have been used to fund the harness industry where the bulk of the spend was done. We have people running the tab here who have been making decisions with no analysis of the impact on the profit/loss side of their business. Now you take the above example and start to include the many other punters(like myself), on differing scales who the tab has introduced barriers to prevent their profit on the ff betting. Then you look at how it has impacted their tote turnover. The whole thing is broken . Punters are being discouraged and the industry is and will pay dearly for such stupid policies. 1 Quote Link to comment Share on other sites More sharing options...
mikeynz Posted March 27, 2023 Share Posted March 27, 2023 (edited) Brodie don't worry if you can't bet anymore, it's a silly habit anyway As for harness racing nought much will change, once the infrastructure is fucked its fucked as in numbers declining Note one again, smallish fields at Winton despite no racing last week Edited March 27, 2023 by mikeynz 1 Quote Link to comment Share on other sites More sharing options...
the galah Posted March 28, 2023 Share Posted March 28, 2023 (edited) 2 hours ago, mikeynz said: Brodie don't worry if you can't bet anymore, it's a silly habit anyway As for harness racing nought much will change, once the infrastructure is fucked its fucked as in numbers declining Note one again, smallish fields at Winton despite no racing last week When you look at the on course attendance of some of the meetings that no longer are allowed to race at their own venues,it does make you wonder if forcing clubs to move is the right path. Waimate is just half an hour from oamaru,but it looked like none of the general public from waimate turned up. Contrast that to if the races had been run at waimate,and you could have guaranteed the club would have received good local support as it always used to. A fine day always brings out the locals. And if you were a local waimate trainer/owner,part of the experience of having a horse is recognition from your local community. Its what leads to continued participation. Clubs like geraldine are the same. Clubs don't seem to have any financial incentive to promote on course attendance these days,and transferring more meetings to the same tracks predictably just dilutes the enthusiasm and energy needed to get people on course at the tracks who hold the meetings. When clubs like the aforementioned use low cost leased grounds, and nothing is gained from the facilities that the clubs had on the leased ground,have results shown that the positives out weigh the negatives.Does it make sense to transfer when the one day a year clubs still want to race locally. In the case of waimate they just had spent $400,000 upgrading everything just 5 years ago after an insurance payout. Wouldn't they have still gotten the same fields at either venue. Harness racing is no different to nearly all other sports in as far as having diminishing participation. For example geraldine had always fielded a senior rugby team,but now finds itself having to combine with another team.They still play half their senior games in geraldine,because they recognise that is what is required to maintain participation. Reality is change isn't always for the better.Nothing wrong with trying something different,its just a matter of recognising whether change worked,or whether it was better as it was. Edited March 28, 2023 by the galah 3 Quote Link to comment Share on other sites More sharing options...
Doomed Posted March 29, 2023 Share Posted March 29, 2023 On 3/28/2023 at 2:03 PM, the galah said: When you look at the on course attendance of some of the meetings that no longer are allowed to race at their own venues,it does make you wonder if forcing clubs to move is the right path. Waimate is just half an hour from oamaru,but it looked like none of the general public from waimate turned up. Contrast that to if the races had been run at waimate,and you could have guaranteed the club would have received good local support as it always used to. A fine day always brings out the locals. And if you were a local waimate trainer/owner,part of the experience of having a horse is recognition from your local community. Its what leads to continued participation. Clubs like geraldine are the same. Clubs don't seem to have any financial incentive to promote on course attendance these days,and transferring more meetings to the same tracks predictably just dilutes the enthusiasm and energy needed to get people on course at the tracks who hold the meetings. When clubs like the aforementioned use low cost leased grounds, and nothing is gained from the facilities that the clubs had on the leased ground,have results shown that the positives out weigh the negatives.Does it make sense to transfer when the one day a year clubs still want to race locally. In the case of waimate they just had spent $400,000 upgrading everything just 5 years ago after an insurance payout. Wouldn't they have still gotten the same fields at either venue. Harness racing is no different to nearly all other sports in as far as having diminishing participation. For example geraldine had always fielded a senior rugby team,but now finds itself having to combine with another team.They still play half their senior games in geraldine,because they recognise that is what is required to maintain participation. Reality is change isn't always for the better.Nothing wrong with trying something different,its just a matter of recognising whether change worked,or whether it was better as it was. Hard to argue with any of that. Incredible that the people who make those decisions just can't see it. Although to be fair, the people who who make those decisions have never actually been to Geraldine or Waimate so you can't expect them to know. Interestingly, the only racetrack on state highway 1 that they are desperate to close down is Timaru. Some other centres off the beaten track might need to be wary. Quote Link to comment Share on other sites More sharing options...
the galah Posted March 29, 2023 Share Posted March 29, 2023 (edited) 2 hours ago, Doomed said: Hard to argue with any of that. Incredible that the people who make those decisions just can't see it. Although to be fair, the people who who make those decisions have never actually been to Geraldine or Waimate so you can't expect them to know. Interestingly, the only racetrack on state highway 1 that they are desperate to close down is Timaru. Some other centres off the beaten track might need to be wary. One possible path forward would be for leadership to recognise that centralisation isn't a philosophy that improves the overall well being of the industry. Centralisation doesn't necessarily increase the overall $ wealth of the industry,it just transfers the $ wealth into the hands of a smaller,supposedly wiser group of decision makers and administrators. The down side to centralisaton,is it erodes the main asset the industry has,which is the vast web of industry participants. Its a bit like a spiders web. The threads of the web are held together by relationships forged by the common interest in harness racing and horses. Centralisation in effect cuts away at those threads and the industry weakens with each cut/closure. Leadership are making decisions which are well intentioned. i just think true leadership would be to consider the possibility that decisions made don't always have to be final. There needs to be a fair analysis of the consequences of the changes they made and future decisions based on that analysis. Things don't have to be set in stone,as there is still a small but diminishing window to change tact. As far as timaru goes.Numbers wise they have quire a few gallopers trained there,so its hard to think it makes sense to close.. What is noticeable is the public don't turn up to Timaru like they do to tracks like waimate and geraldine. Obviously part of the reason is because the one day a year clubs put a lot of energy into promoting their own racedays.But if you look at geraldine,probably two thirds of those who attend the november meeting normally come from timaru. But those numbers are never replicated at timaru.Part of the reason for that is Timaru has a good grass track,but for reasons unknown don't race on it.Perhaps that is because the gallopers won't let them,who knows.Also if you looked at their public car park,it always looked unsuitable for the public although that may be changing. Edited March 29, 2023 by the galah 1 Quote Link to comment Share on other sites More sharing options...
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