The New Zealand Government has decisively turned down a substantial $150 million offer from the Totalisator Agency Board (TAB) for an online casino licence. This move comes amidst the government’s inaugural auction of 15 online casino licences aimed at regulating the digital gambling landscape.
TAB's Proposal and Request for Legislative Change
The TAB, a statutory entity, is currently prohibited from participating in online casino gambling under existing legislation. In an attempt to alter this restriction, TAB approached government officials, proposing an amendment that would allow them to compete in the burgeoning online casino sector.
Details from the Official Information Act
According to documents obtained by RNZ through the Official Information Act, the TAB communicated with Internal Affairs Minister Brooke van Velden, suggesting a one-time $150 million payment to the government for an exclusive iGaming licence. This proposal was part of a broader strategy to maintain its competitiveness and potentially partner with international operators.
Ministerial Response
However, Minister van Velden responded decisively to inquiries from RNZ, stating, "Not under my watch." She expressed a firm belief that the government should not engage in casino gambling, emphasizing the focus should remain on core public services rather than facilitating online casino activities.
Rejection of the Proposal
Despite the lucrative offer, which TAB argued could significantly bolster the government’s fiscal resources, the proposal was rejected. The government’s stance aligns with concerns about preserving domestic control over new online gambling licenses and preventing market dominance by foreign entities.
Racing Minister's Comments
In addition, Racing Minister Winston Peters highlighted the distinct nature of casino products compared to traditional wagering, reinforcing the government’s stance on keeping TAB’s focus on sports and racing. Despite ongoing legislative efforts to solidify TAB’s online monopoly in these areas, the proposal for an online casino license has not swayed governmental leaders.
Legislative Developments and Pokie Machines
As it stands, while TAB will retain its monopoly over online sports and racing betting—expected to pass into law by May—it will also keep its Class 4 licence for operating 415 pokie machines, a decision confirmed by Peters amidst contrasting governmental views on gambling operations.