Chief Stipe Posted March 27, 2023 Share Posted March 27, 2023 TAB NZ names preferred partner New Zealand Racing Desk@nzracingnews12:38pm New Zealand racing (Image: Trish Dunell) TAB NZ has announced Entain as its preferred partner for a 25-year strategic arrangement, subject to ministerial approval. The statutory entity and sole holder of a betting licence in New Zealand, TAB NZ has faced increasing competition, rising costs, capital constraints and other challenges, which have impacted its ability to deliver adequate funding to racing and sports, with no sign of those challenges abating. The board and management of TAB NZ considered that it was in the best interests of the entity and its stakeholders to explore a strategic partnering arrangement with a world-class international wagering operator to deliver its wagering and broadcast functions in order to achieve its growth ambitions. Over the past six months, TAB NZ has engaged with a range of international 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 and Allens as principal legal advisers, while Chapman Tripp provided legal advice in New Zealand. Following a detailed assessment of a number of proposals which were received, TAB NZ on Monday announced that it has selected Entain, the parent company of well-known bookmaking brands Ladbrokes, Neds and Betstar, as its preferred partner for a 25-year strategic partnering arrangement. The proposed strategic arrangement remains subject to approval by Minister for Racing Kieran McAnulty. 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 CEO Mike Tod said the 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," Tod said. "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. "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 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," Stewart said. "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." Entain's CEO of Australian operations, Dean Shannon, said the company is 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," he said. "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. "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." The key benefits of proposed strategic arrangement with Entain include: • The 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; • It significantly strengthens the financial position of TAB NZ 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; • It is also 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; and • Additional support to the Racing industry, including a NZ$10 million sponsorship of an enhanced racing carnival and the establishment of other community linked initiatives. 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TAB NZ has announced Entain as its preferred partner for a 25-year strategic arrangement, subject to ministerial approval. The statutory entity and sole holder of a betting licence in New Zealand, TAB NZ has faced increasing competition, rising costs, capital constraints and other challenges, which have impacted its ability to deliver adequate funding to racing and sports, with no sign of those challenges abating. The board and management of TAB NZ considered that it was in the best interests of the entity and its stakeholders to explore a strategic partnering arrangement with a world-class international wagering operator to deliver its wagering and broadcast functions in order to achieve its growth ambitions. Over the past six months, TAB NZ has engaged with a range of international 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 and Allens as principal legal advisers, while Chapman Tripp provided legal advice in New Zealand. Following a detailed assessment of a number of proposals which were received, TAB NZ on Monday announced that it has selected Entain, the parent company of well-known bookmaking brands Ladbrokes, Neds and Betstar, as its preferred partner for a 25-year strategic partnering arrangement. The proposed strategic arrangement remains subject to approval by Minister for Racing Kieran McAnulty. 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 CEO Mike Tod said the 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," Tod said. "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. "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 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," Stewart said. "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." Entain's CEO of Australian operations, Dean Shannon, said the company is 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," he said. "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. "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." The key benefits of proposed strategic arrangement with Entain include: • The 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; • It significantly strengthens the financial position of TAB NZ 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; • It is also 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; and • Additional support to the Racing industry, including a NZ$10 million sponsorship of an enhanced racing carnival and the establishment of other community linked initiatives.
The Centaur Posted March 27, 2023 Share Posted March 27, 2023 Absolutely disaster for racing. This will just be one big promotion of sports betting. Racing would do far better going alone without any links to sports betting. 2 Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted March 27, 2023 Author Share Posted March 27, 2023 52 minutes ago, Chief Stipe said: The 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; Sounds a lot of same old same old hype rolled out again. Where will they get $200m per year from? Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted March 27, 2023 Author Share Posted March 27, 2023 NZTR can't even update their comms on their website. Still have Bernie's Blog that hasn't been updated for 3 years! Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted March 27, 2023 Author Share Posted March 27, 2023 TAB NZ selects Entain as preferred partner for 25-year strategic arrangement subject to Ministerial approval 27 March 2023 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.com Note 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...
Chief Stipe Posted March 27, 2023 Author Share Posted March 27, 2023 Just now, Chief Stipe said: TAB NZ today announces that it has selected Entain as its preferred partner for a 25-year strategic partnering arrangement Who the hell in any corporate environment signs up for 25 years?! 2 Quote Link to comment Share on other sites More sharing options...
The Centaur Posted March 27, 2023 Share Posted March 27, 2023 4 hours ago, Chief Stipe said: TAB NZ and Entain will not be commenting further on the proposed strategic partnering arrangement until the outcome of the Ministerial Approval Process. Just when a discussion is needed with all points of view they clam up. This whole scenario is rubbish. When the last great software system was introduced everything was going to be wonderful. WHAT!!! are they going to write off the whole $60 million's worth??? Just so they can send any profits overseas to Ladbrokes. Ridiculous. Quote Link to comment Share on other sites More sharing options...
The Centaur Posted March 27, 2023 Share Posted March 27, 2023 8 hours ago, Chief Stipe said: Who the hell in any corporate environment signs up for 25 years?! This seems a back door entry into the online casino market. There are so many questions that NZTR needs to explore. Its written in the legislation NZTAB must consult with the codes who in turn need to have feed back from participants and stakeholders. Quote Link to comment Share on other sites More sharing options...
Freda Posted March 27, 2023 Share Posted March 27, 2023 I'm afraid doing nothing is not a viable option. 1 Quote Link to comment Share on other sites More sharing options...
Special Agent Posted March 27, 2023 Share Posted March 27, 2023 As the Racing Minister has the final word on this does anyone know if he has any thoughts of his own, or is it just an influenced rubber stamp? 1 Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted March 27, 2023 Author Share Posted March 27, 2023 Whoosh! Entain waves its magic wand and 100's of millions of new revenue emerges overnight. Really? Supposedly they have had consultants doing the numbers and it all adds up. Where have we heard that before? NZ is a limited market of 5 million people. Where is the revenue going to come from? Doesn't this smell of everything we have seen over the last few decades? 2 Quote Link to comment Share on other sites More sharing options...
Freda Posted March 27, 2023 Share Posted March 27, 2023 Yes, it does rather. Sure, there will be savings from cutting wasteful practices, but hard to see THAT much coming from economies only. And retaining 200 poorly-performing staff for two years isn't very economic either. 2 Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted March 27, 2023 Author Share Posted March 27, 2023 All seems to me like selling the industry jewels and then waiting for the buyer to drop us as soon as the promises fail to be realised. All started going down hill when we cannibalised the golden goose - the tote. Quote Link to comment Share on other sites More sharing options...
The Centaur Posted March 28, 2023 Share Posted March 28, 2023 Just like when the OpenBet/Paddy Power thing came in we had the same gullibles with the same lines. Amazing how in a short time they saw the so called "change" wasn't for the better. Like many I don't have the facts simply because there has been scant detail. Online casino/sports betting/racing will all be mixed up meaning Ladbrokes will have a monopoly on casino betting as the they will expect the government to get tough on geo blocking. Casino betting online is the elephant in the room. 1 Quote Link to comment Share on other sites More sharing options...
Mark D Posted March 28, 2023 Share Posted March 28, 2023 I keep seeing ads promoting 22 Bet open on youtube with Brendan McCullum fronting saying they are legal in NZ. They must be running through the TAB? Are they? Quote Link to comment Share on other sites More sharing options...
curious Posted March 28, 2023 Share Posted March 28, 2023 30 minutes ago, Mark D said: I keep seeing ads promoting 22 Bet open on youtube with Brendan McCullum fronting saying they are legal in NZ. They must be running through the TAB? Are they? You can bet with them from NZ can't you? Quote Link to comment Share on other sites More sharing options...
Mark D Posted March 28, 2023 Share Posted March 28, 2023 Yip I guess you can but I thought there were limits on overseas operators at least advertising in NZ? Quote Link to comment Share on other sites More sharing options...
curious Posted March 28, 2023 Share Posted March 28, 2023 32 minutes ago, Mark D said: Yip I guess you can but I thought there were limits on overseas operators at least advertising in NZ? Is youtube NZ? Don't think that counts. Lots of betting operators advertise there. Quote Link to comment Share on other sites More sharing options...
Mark D Posted March 28, 2023 Share Posted March 28, 2023 Really? Only seen this one Quote Link to comment Share on other sites More sharing options...
Huey Posted March 28, 2023 Share Posted March 28, 2023 I agree with most , the numbers just look too good to be true for nzracing. 1 Quote Link to comment Share on other sites More sharing options...
curious Posted March 28, 2023 Share Posted March 28, 2023 1 hour ago, Mark D said: Really? Only seen this one 2 Quote Link to comment Share on other sites More sharing options...
Mark D Posted March 29, 2023 Share Posted March 29, 2023 19 hours ago, curious said: Nope never seen that one. The youtube algorithim obviously picks out something different in my profile from others Quote Link to comment Share on other sites More sharing options...
The Centaur Posted March 29, 2023 Share Posted March 29, 2023 I am shocked at the unprofessional manner NZherald publishes Michael Guerin pieces. He is employed by the TAB therefore the articles relevant to TAB should have a conflict of interest statement or disclosure. It is noticeable that Guerins articles are trying to hurry MacAnulty into approving the deal and the online articles also undergo changes after publishing. 1 Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted March 30, 2023 Author Share Posted March 30, 2023 Just twigged to what is happening. The are promising $160m in the first year up to a maximum of $250m over the next 5 years. So I guess they are picking up the TAB for a dollar and then "buying" it by using revenue from other sources to payout up to $250m per year for the first 5 years. What happens after that? Quote Link to comment Share on other sites More sharing options...
Huey Posted March 30, 2023 Share Posted March 30, 2023 4 hours ago, Chief Stipe said: Just twigged to what is happening. The are promising $160m in the first year up to a maximum of $250m over the next 5 years. So I guess they are picking up the TAB for a dollar and then "buying" it by using revenue from other sources to payout up to $250m per year for the first 5 years. What happens after that? Nzracing goes from strength to strength & becomes the envy of the world! 1 Quote Link to comment Share on other sites More sharing options...
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