A legislative proposal currently under examination could significantly alter New Zealand's online betting scene by making TAB New Zealand the sole legal domestic platform for online racing and sports wagering. This move, part of the proposed amendments to the Racing Industry Act 2020, aims to centralise betting operations under government control.
Regulatory Intentions and Financial Implications
According to sources, the government believes that a state-run operator would enhance regulatory oversight, promote responsible betting, and ensure profits benefit public interests. This approach contrasts with private operators, where revenue often flows overseas to jurisdictions like Gibraltar and Malta. The legislative shift is expected to curb the approximately NZ$185 million lost annually to foreign operators by Kiwi gamblers.
Monopoly Concerns and Market Impact
Critics of the bill argue that creating a betting monopoly could stifle consumer choice and market efficiency. They have also voiced concerns that such a monopoly could lead to less competitive odds, disadvantaging New Zealand bettors. This is particularly contentious given the Commerce Commission's ongoing efforts to foster competition in sectors like banking and groceries.
Legal Challenges Facing Entain
Simultaneously, TAB NZ's managing company, Entain, faces legal challenges in Australia. Accused of failing to adequately prevent money laundering and corruption, Entain is under scrutiny by Australia's financial crimes regulator, AUSTRAC, in a case that echoes previous legal actions within the Australian betting industry.
Potential Risks and Ministerial Oversight
Racing Minister Winston Peters, though not commenting directly on the legal matters, has been briefed and is monitoring the situation closely. His office acknowledges the risks associated with the proposed monopoly, including the potential for it to drive bettors towards unregulated markets, especially those accessible through cryptocurrencies.
Public and Stakeholder Responses
Submissions on the bill reveal a divide: while some see the monopoly as a means to reduce gambling harm by better regulating the environment and offering more controlled betting conditions, others fear it may actually exacerbate issues for problem gamblers by limiting their options to platforms with poorer odds.
Weighing the Odds
As the bill progresses through the select committee stage, the debate continues on whether the benefits of a government-controlled betting monopoly outweigh the potential drawbacks of reduced market competition and the associated risks identified by critics and stakeholders alike.