New Zealand is poised to introduce significant changes to its gambling sector with a proposal aimed at expanding TAB NZ’s monopoly to cover both online and land-based sports and race betting. This move, led by Racing Minister Winston Peters, seeks to safeguard the nation’s racing industry while addressing the challenges posed by offshore online gambling operators.
Currently, TAB NZ operates as the sole authorized provider of land-based sports betting and horse and greyhound racing wagers in New Zealand. This monopoly has been a cornerstone of the country’s racing industry, contributing an estimated 90% of its revenue. The proposed expansion would amend the Racing Industry Act 2020, granting TAB NZ exclusive rights to online betting as well, further solidifying its control over the sector.
Minister Peters has highlighted the need for this change, citing the growing competition from unregulated offshore operators as a pressing concern. These platforms attract New Zealand bettors but do not contribute to local sports and racing industries, undermining the sustainability of TAB NZ’s funding model. By extending TAB NZ’s monopoly, the government aims to maintain a stable revenue stream for the racing industry and ensure greater oversight of the betting market.
The proposed legislation includes provisions to empower the minister with enhanced regulatory authority, enabling stricter control over TAB NZ’s operations and the broader betting environment. However, this proposal will require parliamentary approval before it can be implemented.
In tandem with expanding TAB NZ’s monopoly, the New Zealand government is also planning to introduce a comprehensive regulatory framework for online gambling, or iGaming, by 2026. This initiative represents a broader effort to create a safer and more controlled online gambling ecosystem.
The forthcoming iGaming regulations are expected to address several critical issues, including the protection of vulnerable groups such as young people. The framework will likely include mandatory age verification protocols to prevent underage gambling and strict limits on the number of online gambling licenses issued. Additionally, the government intends to ban advertising strategies that target children, further safeguarding the younger population from exposure to gambling content.
This dual approach—strengthening TAB NZ’s position while implementing robust iGaming regulations—signals a significant shift in New Zealand’s gambling policy. The government aims to balance industry sustainability with public welfare, ensuring that gambling remains a regulated and responsible activity.
The proposed reforms have sparked debate among stakeholders. Supporters argue that these changes are essential to protect the racing industry and regulate online gambling effectively. They emphasize that offshore operators currently operate outside New Zealand’s jurisdiction, making it challenging to enforce responsible gambling measures or collect revenue contributions. By centralizing control under TAB NZ, the government could address these gaps and create a more accountable system.
Critics, however, have raised concerns about the implications of a monopoly. They argue that reduced competition could limit innovation and lead to complacency within the industry. Additionally, questions have been raised about the potential impact on consumer choice, as bettors may face fewer options for betting platforms.
Despite these differing perspectives, the proposed reforms represent a proactive response to the evolving gambling landscape. As digital technologies continue to reshape the industry, governments worldwide are grappling with the challenge of regulating online gambling effectively. New Zealand’s approach, combining an expanded monopoly with stringent regulations, positions it as a leader in crafting balanced and forward-thinking gambling policies.
The next steps will involve navigating the legislative process and finalizing the details of the iGaming framework. If successful, these changes will redefine the structure of New Zealand’s gambling industry, providing a model for other nations facing similar challenges.
With the planned reforms, New Zealand aims to create a sustainable, responsible, and secure gambling environment that prioritizes the well-being of its citizens while supporting the vital contributions of the racing and sports industries.
