TAB NZ names preferred outsource partner. Why didn't McKenzie do this during the restructure?

[Trotsfan]

Is it possible with our time zone that entail international customers could bet on our racing products ?

just trying to think of ways they get to 250 million

 

[The Centaur]

7 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?

The $200m per year is pretty much what NZTAB would generate. But wait.....N.B. the money is given to the TAB. Out of that TAB must pay its own expenses which depending on the secret "detail" could be $100m. So the amount distributed by the TAB is far less than before. Who cares we all love a change.

[Special Agent]

It doesn't seem like a real decision has been made, it's more like a discussion paper.  The older I get the less balls people around me seem to have.

Who knows how half of these people get on anything resembling a racing board and what credentials they supposedly have.  Then the bastards all hide behind an expensive consultancy exercise.

It is not good practice to look back as we must be moving forward with ideas and innovation but, for goodness sake only halfwits do not learn from their mistakes.  If time and effort had gone into past appointments maybe funds might not have been pissed up against the wall.  Not only that but, incompetents were given a free rein and extended contracts.

If the Racing Minister, who has the final say on this, is not enlightened we will only have ourselves to blame.

[The Centaur]

The so called deal just does not make sense. The proponents all seem to be in the dark. Take for instance Dennis Ryan's editorial. He admits he knows nothing about the detail yet writes what a great thing for racing. Could it be the TAB subsidy for Raceform has some influence on his thoughts. Same Michael Guerin's shocking non disclosure in his reporting.

Bookmakers have got their money by being sharks so what makes one think they are suddenly great benefactors to New Zealand racing. I guess they have spotted a gullible easy touch.

[The Centaur]

This is crazy. Judging by the level of discussion on social media of this TAB deal it appears most have been sucked into the absurd edict of no discussion whilst the minister is looking at it. Is this a murder trial or whatever where everything is sub judice. The high salaried managers have found a deal that guaranteed their income for 2 years and current owners trainers jockeys etc will have no decrease in stake money. But for how long? If there are developments in technology why bring in a third party to reap the benefits? There are so many red flags about this deal that National will have a field day if McAnulty OK's it in a hurry.

[Chief Stipe]

I still can't work out where they are going to find another $100 million in revenue within 2 years.  Even if they sacked every employee they still wouldn't get close.  That extra revenue if it does materialise won't all go to the racing codes.

Note YTD January 2023 and the TAB is down 10% on net profit.

Yet Entain within two years can generate over 60% more profit?  

[Special Agent]

It is hard to believe we are expected to think this is all a great deal.  Money is supposedly going to materialise out of thin air with Entain able to magic up funds.  HOW??!!

I may be missing some important revelation but, to summarise the reports of the day as I see it:-

1.  Cameron George thinks the partnership is exciting and can only make the industry thrive but, cannot yet divulge the secret parts of the agreement.

2.  Bruce Sharrock thinks the partnership is what New Zealand has been waiting for but, needs to reserve final judgement until it is known how it will effect racing.

3.  Kieran McAnulty is unable to make an informed decision until he has considered all of the information and is certain due diligence is complete.

This is poppycock!!  Are these adults in charge of a multi billion dollar industry from whom we are supposed to be following advice?  Maybe a couple more blinks and it will be Cheshire Cat, Hatter, Alice and Queen of Hearts stepping up to the plate.

[Freda]

I was thinking of Jonesy, Captain Mannering and Fraser in charge.

At least it would be entertaining. 

[Special Agent]

Yes exactly.

Comedic, spoof or slapstick.  All are apt descriptions of this current madness.

[Chief Stipe]

Just had another thought.  Does this outsourcing arrangement only involve the wagering business or does it also involve the transfer of the Class 4 Gaming License (Pokies)?  The Pokies are the prime source of the $14m to fund the RIB annually.

[Special Agent]

These questions need to be pumped into the right channels.  I can't stress enough that the Racing Minister has the final sign off.

I don't think it is good enough for him to hope due diligence has been done by someone else.  He must have a host of researchers and advisors who can find answers for him, just as long as he is asked the right questions.

[Chief Stipe]

19 minutes ago, Special Agent said:

These questions need to be pumped into the right channels.  I can't stress enough that the Racing Minister has the final sign off.

I don't think it is good enough for him to hope due diligence has been done by someone else.  He must have a host of researchers and advisors who can find answers for him, just as long as he is asked the right questions.

The Department of Internal Affairs should be across this given their oversight of gambling legislation.

Will the Class 4 license be part of the outsource agreement?  

Surely the RFP documentation that went out to prospective outsource partners is available for public scrutiny?  Or will they hide behind the "Corporate Commercially Sensitive" screen?

[Special Agent]

I can't answer those questions but, they definitely need answering.

How many times have we been told racing administrators are going to be transparent?  We do not want to hear such phrases as commercially sensitive.

I have no time for Cameron George.

[The Centaur]

2 hours ago, Special Agent said:

These questions need to be pumped into the right channels.  I can't stress enough that the Racing Minister has the final sign off.

I don't think it is good enough for him to hope due diligence has been done by someone else.  He must have a host of researchers and advisors who can find answers for him, just as long as he is asked the right questions.

Look the current law is "you can't advertise offshore betting or bookmaking enterprises"

This deal is already breaking the law by advertising Ladbrokes and the other parasitic outfits

Entain has so many vehicles for gambling and with the sponsorship of racing carnivals would expect to have huge promotional opportunities. All to promote their overseas businesses. So this will promote export of NZ money to these outfits.

Sharrock and Cameron George need to be removed TODAY.

 

[Chief Stipe]

49 minutes ago, The Centaur said:

Look the current law is "you can't advertise offshore betting or bookmaking enterprises"

This deal is already breaking the law by advertising Ladbrokes and the other parasitic outfits

Entain has so many vehicles for gambling and with the sponsorship of racing carnivals would expect to have huge promotional opportunities. All to promote their overseas businesses. So this will promote export of NZ money to these outfits.

Sharrock and Cameron George need to be removed TODAY.

 

But isn't McKenzie also heavily involved in this process?  Isn't he still on the payroll?

[The Centaur]

1 hour ago, Chief Stipe said:

But isn't McKenzie also heavily involved in this process?  Isn't he still on the payroll?

I thought he was permanently settled somewhere in the USA. Don't know why you have such long winded thread headings?

 

[Chief Stipe]

43 minutes ago, The Centaur said:

I thought he was permanently settled somewhere in the USA. Don't know why you have such long winded thread headings?

 

MSM all do it now.  Stuff and the NZHerald can have 12 or more words in a heading.

[The Centaur]

extract from Gambling Act

Advertising Overseas Gambling Prohibited

Advertising overseas gambling is prohibited under section 16 of the Gambling Act 2003. An overseas gambling advertisement is any communication that publicises or promotes gambling, or a gambling operator, when that gambling, or operator, is outside New Zealand. It is also any communication that is reasonably likely to induce people to gamble outside New Zealand. Section 16 makes this an offence under the Gambling Act and carries a fine of up to $10,000.

--------------------------------------

NZTAB, NZTR is clearly breaking the law. Any communication means any communication like the so called partnering deal.

[Special Agent]

This whole situation is clearly a shocker.  I wouldn't be paying any consultancy fees.

[Chief Stipe]

This is what Dean Mackenzie said March 2022:

5. In looking to the future, the Messara Report outlined that outsourcing of New Zealand’s TAB was the only way forward given the lack of scale in New Zealand. Have any of the outsourcing steps been pursued? Is there a mandate to pursue outsourcing? Do you foresee this happening any time soon?

It was an essential plank of the report and through the MAC work, I think the biggest challenge was getting everyone to understand that it wasn’t MAC of RITA’s job to do it (seek partnering options), the job was to ensure it was able to be done if that was the best course of action.

There was clarity needed on what steps would be taken if we went down that path.

RITA believed that our focus was ensuring the steps were quite clear and as a result there is a section in the new Racing Industry Act that partnering would need full approval from the TAB and then be presented to the Minister for final approval.

Our thoughts were that if the Industry is to make that decision then a robust process must be established. When you can only do something effectively once, you need to make sure the boxes are ticked so the next board/wave of administrators are not saddled with an even bigger issue.

In our Statement of Intent last year there is mention of a work stream for the new Board to further examine the key partnering opportunities.

While it has been on the table, the environment has changed massively in the last three years and we are now in a substantially different position to what we were then.

We haven’t lost any ground by being circumspect, with the TAB now being far more profitable and our leverage position so much stronger because of it.

[Freda]

 I'd have to scratch my head about the 'more profitable' part of that mission statement.

Whoever 'owned' the TAB prior to 2003, from the time of that Act it would appear that the Govt owns the outfit, and with the monopoly that exists, is responsible for funding us.  Like it or not, we [ racing] operate under a welfare system whereby we are given funding - tax free - from the taxpayer of NZ.

Any outsourcing or partnering must, therefore, be subject to a legislative minefield of unravelling.   Can't see that happening ASAP, especially in an election year.

[Mark D]

On 29/03/2023 at 1:49 PM, Mark D said:

Nope never seen that one.  The youtube algorithim obviously picks out something different in my profile from others

Seems some others have picked up on this as well as me

 

https://www.stuff.co.nz/business/131715353/department-of-internal-affairs-says-22bet-brendon-mccullum-ads-misleading

[Chief Stipe]

This has got a Glenn Saville smell about it.  I see he left his Scientific Games role just before it sold to Endeavour Inc and shifted to OZ and is VP for Openbet Sportsbet operations.  Entain - Ladbrokes and TAB NZ use Openbet systems.

Entain will probably save money by piggy backing NZ off their global contract.  

Now where does Mike Tod fit in all the machinations.

A lot of buying and selling of companies in the gaming and wagering sector at the moment.

Will Entain renegotiate the broadcasting agreement and or offload it completely to the encumbent?  It isn't part of their core business and you don't need it if your focus is on online gaming.

I'd say the days of a NZ Totalisator are numbered.

 

[Special Agent]

Why are so few worried about this agreement and all of it's ramifications?

[The Centaur]

3 hours ago, Special Agent said:

Why are so few worried about this agreement and all of it's ramifications?

Some of the regular posters on racing social media have gone into retirement. One guy although not always right by any means was Berri. At least he had some involvement with the offshore parasites.