Special Agent Posted May 14, 2023 Share Posted May 14, 2023 https://i.stuff.co.nz/business/131979402/concerns-raised-over-tabs-proposed-outsourcing-deal 1 Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted May 14, 2023 Share Posted May 14, 2023 Concerns raised over TAB's proposed outsourcing deal Tom Pullar-Strecker05:00, May 14 2023 1 STUFF Entain’s business case for its outsourcing deal with the TAB is understood to be predicated on it growing the amount of gambling taking place in NZ. The Problem Gambling Foundation has written to Minister of Racing Kieran McAnulty to voice concerns over the proposed outsourcing of the TAB’s operations to British gambling giant Entain. Problem Gambling Foundation (PCF) spokesperson Andree Froude said it was worried by what she described as “a raft of regulatory failures” by Entain in recent years, and expected to meet with McAnulty early next month. Froude noted Entain was fined a massive £17 million (NZ$34m) by the UK Gambling Commission last year. Andrew Rhodes, chief executive of the UK Gambling Commission, said its investigation of Entain had found “completely unacceptable anti-money laundering and safer-gambling failures” and threatened it with the cancellation of its gambling licence if there were further breaches. Its investigation centred on Entain’s interactions with customers who had staked tens of thousands of pounds, and in some cases hundreds of thousands, with Ladbrokes and Entain’s other betting brands. ADVERTISEMENT Advertise with Stuff Rhodes said it had been the second time Entain had “fallen foul of rules in place to make gambling safer and crime free”. Froude said she had also raised the matter of an A$78,540 (NZ$83,642) fine that Entain received from the Northern Territory Racing Commission in Australia in February. It found Entain had breached its licence in 2018 by proactively approaching a heavy gambler, Gavin Fineff, and urging him to open an account with its Ladbrokes business, and had then failed to identify his “red flag behaviours”. ADVERTISEInternal Affair Minister Jan Tinetti announces new gambling regulations - but even the industry says they don't go far enough (video first published in November). Fineff, a now-disgraced financial planner, staked A$17.5m through his Ladbrokes account over 21 months, losing A$758,510, before he was caught and jailed for nine years for gambling away more than A$3.3m of his clients’ money through that account and with other betting operators. The Northern Territory Racing Commission said Fineff had been offered significant incentives to open and then continue using the Ladbrokes account, which he was allowed to operate under a pseudonym. Speaking to The Sydney Morning Herald in 2020 about his gambling addiction, Fineff said incentives he was offered by Ladbrokes were “like a drug dealer handing out free heroin to people”. Australian regulator Austrac separately opened an “enforcement investigation” into Entain in September in regard to compliance with anti-money-laundering laws. The TAB announced in March that it intended to outsource its gambling and broadcasting functions to Entain for 25 years, under a deal that would guarantee its staff jobs for two years and that would see the TAB brand retained. The deal would need to be approved by McAnulty. The TAB said the arrangement would guarantee it $1 billion of income during its first five years, and that Entain would make an “additional and significant upfront payment” if legislation was enacted that prevented rival, unlicensed offshore operators from providing wagering services in New Zealand. The TAB cited Entain’s ability to help it better address problem-gambling as one reason it had selected the company as its preferred partner. It said its decision was 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”. ROBERT KITCHIN/STUFF Racing Minister Kieran McAnulty will have the say on whether the TAB outsourcing deal is approved and said on Monday that he had yet to make that decision. Froude said it was a “difficult question” whether the regulatory beaches by Entain overseas should disqualify it from participating in the New Zealand market, or whether safeguards could be put in place that might allow that. “If there was a really strong, tough raft of enforcement measures and levers to pull then, yes, it could work,” she said. “But when you see what's happened with Entain; its track record and what's gone on with the UK Gambling Commission expressing real concern about their operations, then that makes us nervous.” Froude said she understood that there were concerns about the future viability of the TAB if it didn’t find an overseas partner, but minimising the harm from gambling should be the priority. Entain was a huge organisation with multiple brands, she said. “This is going to expose the New Zealand market to aggressive marketing and advertising, both online and through sponsorship.” DAVID WHITE/STUFF PGF spokesperson Andree Froude said it expected to meet with McAnulty, but not until early next month; there are indications the Government may have made a call by around then. Entain spokesperson Karl deKroo noted the Austrac investigation had not been concluded. He declined fresh comment on the regulatory breaches, but said it stood by previous statements. Those stated it had improved its practices since the events that led to the UK fine, including by deploying “revolutionary artificial intelligence technology” that it said was individually tailored for each customer and designed to detect and respond to problem gambling. Entain said at the time of the Northern Territory Racing Commission’s Fineff ruling that since that event and another investigation by the commission that also led to a fine, it had “invested significantly to strengthen its approach to customer protection”. That other investigation, which was also completed in February, concluded that Entain had breached its licence by opening a betting account for a gambler, which involved setting up a username and password on their behalf, without the gambler’s prior knowledge or consent. The gambler, who was then informed by Entain that the account and “bonus bets” were available, said he went on to lose A$1.5m over a two-year period, and identified as an addict. DeKroo said Entain very much respected groups such as the Problem Gambling Foundation. “As TAB NZ has done, our plan will be to foster a meaningful relationship with them should ministerial approval be forthcoming,” he said in relation to the outsourcing deal. “We are proud of our record and commitment to player protection and safer gambling and that will be a cornerstone of our approach in New Zealand as well.” McAnulty declined an interview but made positive comments about the outsourcing proposal in a statement, saying it proposed a “significant boost for both sports and racing in New Zealand in a financial sense”. His goal in considering the proposal had been to achieve that uplift while minimising the risk of gambling harm, he said. “Entain has committed to investing significantly in uplifting TAB NZ’s harm minimisation efforts. “This is likely to include technology, for example facial recognition tools for TAB NZ venues, and New Zealand specific research. This is additional to the existing contributions TAB NZ make to the problem gambling levy.” But he said that while he had responsibility “at a high level” for considering whether any deal minimised harm, including problem gambling harm, “some matters are for the board of TAB NZ to consider before putting a proposal to me” Those included ensuring that adequate remediation was put in place to address any compliance issues in international jurisdictions, and staffing impacts and obligations, he said. ”TAB NZ’s board has informed me that they have undertaken due diligence on Entain’s international compliance record and is satisfied that Entain are addressing the issues raised,” he said. McAnulty indicated Entain’s two-year job guarantee and its commitment to keep the TAB brand had addressed his concerns about job losses and the “retention of a uniquely New Zealand brand”. “With about 460 staff members around New Zealand, it was crucial to me that we do not lose staff with engrained knowledge of the New Zealand racing industry,” he said. TAB and Entain declined to confirm that the two-year job guarantee applied to the TAB’s executive leadership team, after an industry source advised that it did not. That source forecast the TAB’s Petone headquarters would be “gone in 30 months”, leaving a small number of staff and its broadcast operations in Auckland, if the outsourcing deal was approved. “Two-year staff protection, five years and $1b, but we all know what will happen at those deadlines. “Gambling owners won’t want to burn cash where they don't need to; charity is not their go. There will be large scale rationalisation and funding minimisation. “Racing times will be moved to fit in with Australia and funding will decrease; it is the only way Ladbrokes will see it as viable,” he said. Quote Link to comment Share on other sites More sharing options...
mikeynz Posted May 14, 2023 Share Posted May 14, 2023 The only problem gambling that betting company's worry about is punters who win, losers are most welcome. Short term gain for long term pain is the only way I see this turning out, Entain will entice geo blocking with a lump some that's very tempting, if they get the monopoly then you can take it ir leave it. Most of the betting on TAB racing is on NZ racing, have you seen the size of the non commingled pools on lots of the lower class aussie racing? No doubt the big racing in aussie is a exception, lots of interest in that and rightly so, the product is good. I really can't see how this is any better than the present setup, everyone grizzles about the present lot but better the devil you know than the devil who's lurking. Leave it to the experts they know what they are doing, supposedly. 2 Quote Link to comment Share on other sites More sharing options...
The Centaur Posted May 15, 2023 Share Posted May 15, 2023 10 hours ago, mikeynz said: The only problem gambling that betting company's worry about is punters who win, losers are most welcome. Short term gain for long term pain is the only way I see this turning out, Entain will entice geo blocking with a lump some that's very tempting, if they get the monopoly then you can take it ir leave it. Most of the betting on TAB racing is on NZ racing, have you seen the size of the non commingled pools on lots of the lower class aussie racing? No doubt the big racing in aussie is a exception, lots of interest in that and rightly so, the product is good. I really can't see how this is any better than the present setup, everyone grizzles about the present lot but better the devil you know than the devil who's lurking. Leave it to the experts they know what they are doing, supposedly. Actually you bring up a good point re commingling. I can't see Tabcorp accommodating Ladbrokes their competitor in Australia. I don't think Ladbrokes care much about tote betting anyway their product seems to be best tote which is the best tote price paid out on 3 Australian totes. In other words a form of bookmaking and really highly questionable legally. You say leave it to the experts but I heard an interview with Darin Balcombe the 2ic at NZTR and we wasn't fully informed about the deal. The Racing Act says.... (4) TAB NZ must consult each racing code and the Racing Integrity Board before making, amending, or revoking rules under this section. Quote Link to comment Share on other sites More sharing options...
Assange Posted May 15, 2023 Share Posted May 15, 2023 31 minutes ago, The Centaur said: Actually you bring up a good point re commingling. I can't see Tabcorp accommodating Ladbrokes their competitor in Australia. I don't think Ladbrokes care much about tote betting anyway their product seems to be best tote which is the best tote price paid out on 3 Australian totes. In other words a form of bookmaking and really highly questionable legally. You say leave it to the experts but I heard an interview with Darin Balcombe the 2ic at NZTR and we wasn't fully informed about the deal. The Racing Act says.... (4) TAB NZ must consult each racing code and the Racing Integrity Board before making, amending, or revoking rules under this section. So if the 2IC doesn't know fully about the deal, who is? There seems to be little information available on this. Quote Link to comment Share on other sites More sharing options...
The Centaur Posted May 15, 2023 Share Posted May 15, 2023 I found this clause in the Racing Act intriguing. (3) Rules made by TAB NZ under this section may provide that, if there is racing betting on a race, bets may be placed up to 20 seconds after the race starts. Now the Act says the TAB bookie may layoff bets elsewhere. Something I find is happening regularly on the NZ tote. Therefore are there two sets of closing times? One for all punters and another for the TAB bookie to get on 20 seconds after everybody else and cancel previous bets That being the case the layoff process could be automated given the final pool size and betting data on each horse. Quote Link to comment Share on other sites More sharing options...
The Centaur Posted May 23, 2023 Share Posted May 23, 2023 (edited) So when the minister approved this crazy deal we were going to learn more. Instead we have ENDS Note for editors: TAB New Zealand and Entain will not be commenting further on the proposed strategic partnering arrangement until after completion on 1 June. Edited May 23, 2023 by The Centaur Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted May 23, 2023 Share Posted May 23, 2023 32 minutes ago, The Centaur said: So when the minister approved this crazy deal we were going to learn more. Instead we have ENDS Note for editors: TAB New Zealand and Entain will not be commenting further on the proposed strategic partnering arrangement until after completion on 1 June. Where did this come from? Quote Link to comment Share on other sites More sharing options...
curious Posted May 23, 2023 Share Posted May 23, 2023 4 minutes ago, Chief Stipe said: Where did this come from? https://www.tabnz.org/racing-and-sport-win-big-tab-nz-strategic-partnering-arrangement Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted May 23, 2023 Share Posted May 23, 2023 Racing and sport win big with TAB NZ Strategic Partnering Arrangement www.tabnz.org TAB New Zealand and Entain Australia's strategic partnering arrangement will commence on 1 June 2023, after receiving Government approval today. The 25-year strategic partnering arrangement will enable an immediate financial uplift to the three New Zealand Racing Codes and 38 National Sporting Organisations, while bringing world class products, services and gambling harm minimisation tools to TAB NZ's 250,000 customers. TAB NZ Chairman Mark Stewart MNZM says today's Government approval marks an important step in the growth and prosperity of racing and sport in New Zealand. “Entain is a world-class operator with the expertise and financial strength to transform our business and in turn boost the long-term fortunes of racing and sport as well as the communities that rely upon their success. Furthermore, Entain has guaranteed the jobs of our 460 staff for at least two years. This is a great vote of confidence in our people,” Mark Stewart says. “Today's approval delivers on a key recommendation from the Messara Report (2018) and we are thrilled that the Minister for Racing has approved the strategic partnering arrangement. TAB NZ is at a critical point in its history due to unprecedented competition from unregulated overseas operators and current global economic headwinds.” The strategic partnering arrangement provides an upfront payment to TAB NZ, as well as a five-year period of annual minimum guaranteed payments. Supported by this new partnering deal, the TAB NZ Board has guaranteed an immediate and significant uplift in distributions to the Racing Codes for the next five years, to the following minimum levels: $170m for 2023/24 (+36% compared to current financial year) $175m for 2024/25 (+40%) $180m for 2025/26 (+44%) $185m for 2026/27 (+48%) $200m for 2027/28 (+60%) “These are a significant uplift on the $125m distribution for the current financial year,” Mr Stewart says. The strategic partnering arrangement will also provide increased funding to National Sporting Organisations and Sport NZ from business growth, as well as immediate funding boosts. National Sporting Organisations will share in a one-off funding uplift of $15m to be paid over the next three years, while a $500,000 payment will be made to Sport NZ, ring-fenced for investment in women’s sport. TAB NZ is also delighted to confirm a $5 million upfront commitment to harm minimisation in the form of: a $4 million investment to dramatically accelerate the rollout of facial recognition technology to 100 TAB Venues; and the establishment of a $1 million research fund to provide grants for research into gambling harm. Facial recognition technology is considered to be one of the best tools available to reduce potential in-venue harm. This technology has not yet become industry standard, given the significant capital investment that is required. A 100-venue rollout will deliver a world leading approach to combating gambling harm. Mr Stewart paid tribute to the TAB NZ Board, Chief Executive Officer Mike Tod and the Executive Leadership Team for delivering a transformational strategic partnering arrangement. "I am incredibly proud of what management and the Board have delivered to transform this business and the fortunes of those who rely upon its success. We are a small company at the bottom of the world in a David v Goliath battle in New Zealand’s unregulated online gambling market. To have secured Entain as our partner to grow the returns to racing and sport is an awesome achievement.” Chief Executive Officer Mike Tod will step away from leading TAB NZ, which will reduce to a smaller organisation focused on its remaining legislative functions – including monitoring the regulatory and commercial performance of Entain New Zealand. TAB NZ Chief Transition Officer Nick Roberts has been appointed to lead TAB NZ in its new form as CEO. Current TAB NZ Chief Commercial Officer Cameron Rodger will become the Managing Director - New Zealand for Entain. "Mike has done an incredible job of transforming TAB NZ since he took over as CEO at the beginning of last year. He has implemented and executed a strategy that has delivered the partnering arrangement with Entain, grown customer numbers to record levels, implemented world-first new products, lifted customer satisfaction and staff engagement scores to their highest levels in over a decade and assembled one of the best leadership teams in the industry. Our racing and sporting stakeholders are set to benefit from an outstanding legacy that he leaves." Entain Australia CEO Dean Shannon welcomed the Government approval and said it was an important milestone in the transformation of the New Zealand wagering landscape. “We are delighted and honoured to have received Ministerial approval to finalise the strategic partnering arrangement between TAB NZ and Entain Australia commencing from 1 June 2023,” Mr Shannon said. “We believe this 25-year strategic partnering arrangement will be a gamechanger for sports betting in New Zealand and we are pleased that it will help provide significant financial benefits to the three New Zealand racing codes and the vast array of national sporting organisations. “Entain is a business built on innovation and being customer focused and we look forward to connecting further with the great team at TAB NZ to introduce a range of new world class products, services and player safety tools to the loyal TAB NZ customer base.” ENDS 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 New Zealand and Entain will not be commenting further on the proposed strategic partnering arrangement until after completion on 1 June. Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted May 23, 2023 Share Posted May 23, 2023 I don't have a good feeling about this. 1 Quote Link to comment Share on other sites More sharing options...
mikeynz Posted May 23, 2023 Share Posted May 23, 2023 I wonder if in 25 years if I'm still going if I actually win anything. Quote Link to comment Share on other sites More sharing options...
The Centaur Posted May 23, 2023 Share Posted May 23, 2023 Wow look at this... I must be blind stakemoney surely must have doubled. "Mike has done an incredible job of transforming TAB NZ since he took over as CEO at the beginning of last year. He has implemented and executed a strategy that has delivered the partnering arrangement with Entain, grown customer numbers to record levels, implemented world-first new products, lifted customer satisfaction and staff engagement scores to their highest levels in over a decade and assembled one of the best leadership teams in the industry. Our racing and sporting stakeholders are set to benefit from an outstanding legacy that he leaves." 1 Quote Link to comment Share on other sites More sharing options...
Special Agent Posted May 23, 2023 Author Share Posted May 23, 2023 39 minutes ago, The Centaur said: Wow look at this... I must be blind stakemoney surely must have doubled. "Mike has done an incredible job of transforming TAB NZ since he took over as CEO at the beginning of last year. He has implemented and executed a strategy that has delivered the partnering arrangement with Entain, grown customer numbers to record levels, implemented world-first new products, lifted customer satisfaction and staff engagement scores to their highest levels in over a decade and assembled one of the best leadership teams in the industry. Our racing and sporting stakeholders are set to benefit from an outstanding legacy that he leaves." More back patting. If so many wonderful transformations and money multiplying ideas have come to light since Mike Tod has been at the helm for only 12 months and he has assembled the best leadership team in racing why couldn't he have taken us to a greater sphere rather than be sent off and replaced by a UK partner? After listening to the announcement there are many pitfalls. Who would have thought leadership could be so naive? 2 2 Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted May 23, 2023 Share Posted May 23, 2023 1 hour ago, The Centaur said: Wow look at this... I must be blind stakemoney surely must have doubled. "Mike has done an incredible job of transforming TAB NZ since he took over as CEO at the beginning of last year. He has implemented and executed a strategy that has delivered the partnering arrangement with Entain, grown customer numbers to record levels, implemented world-first new products, lifted customer satisfaction and staff engagement scores to their highest levels in over a decade and assembled one of the best leadership teams in the industry. Our racing and sporting stakeholders are set to benefit from an outstanding legacy that he leaves." That's utter Bullshit!!! 1 Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted May 23, 2023 Share Posted May 23, 2023 I can't believe that we have sold the Golden Goose. What's more as stakeholders we have no idea what it was sold for. Perhaps we should legally challenge this process. I wonder what Winston Peters view is. 1 Quote Link to comment Share on other sites More sharing options...
Kihikihi Kid Posted May 23, 2023 Share Posted May 23, 2023 Mark Stewart ?? Really , first time seen or heard of the bloke. O well , with all those $million$ bandied about I reckon the time to race a horse is now and for the next 5 years at least. Quote Link to comment Share on other sites More sharing options...
The Centaur Posted May 23, 2023 Share Posted May 23, 2023 6 minutes ago, Chief Stipe said: I can't believe that we have sold the Golden Goose. What's more as stakeholders we have no idea what it was sold for. Perhaps we should legally challenge this process. I wonder what Winston Peters view is. The National guy is just going on what the codes say. The time is now for NZTR to come out with the details if they had any. Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted May 23, 2023 Share Posted May 23, 2023 1 minute ago, The Centaur said: The National guy is just going on what the codes say. The time is now for NZTR to come out with the details if they had any. We've just been fucked over. 1 Quote Link to comment Share on other sites More sharing options...
Special Agent Posted May 23, 2023 Author Share Posted May 23, 2023 3 minutes ago, Chief Stipe said: We've just been fucked over. You could see it coming like a steam train. Quote Link to comment Share on other sites More sharing options...
Newmarket Posted May 23, 2023 Share Posted May 23, 2023 2 hours ago, Chief Stipe said: I don't have a good feeling about this. Not many times I agree with you, but this time I do. If they are offering such good betting opportunities, why do they need to geo block? Trust me, I’m not stopping betting overseas. Entain specialise on gaming, they won’t give a shit about nz racing, harness & dogs. They will just want people gambling on slots. Keiren, your a disgrace, I suggest you have killed off the average nz punter 1 Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted May 23, 2023 Share Posted May 23, 2023 3 minutes ago, Newmarket said: Not many times I agree with you, but this time I do. If they are offering such good betting opportunities, why do they need to geo block? Trust me, I’m not stopping betting overseas. Entain specialise on gaming, they won’t give a shit about nz racing, harness & dogs. They will just want people gambling on slots. Keiren, your a disgrace, I suggest you have killed off the average nz punter Killed NZ racing. But that's what this Government wants. Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted May 23, 2023 Share Posted May 23, 2023 14 minutes ago, Special Agent said: You could see it coming like a steam train. Yep. Who got paid shit loads? Follow the money. Who the fuck is Mike Tod and Bruce Sharrock? Quote Link to comment Share on other sites More sharing options...
The Centaur Posted May 23, 2023 Share Posted May 23, 2023 TV one about to reveal how the racing industry has been "saved" Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted May 23, 2023 Share Posted May 23, 2023 1 minute ago, The Centaur said: TV one about to reveal how the racing industry has been "saved" "Saved" because we didn't have the nous or skills to do it ourselves? FFS. Quote Link to comment Share on other sites More sharing options...
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