Entain Seeks Monopoly Extension for TAB NZ Amid Legislative Review

Highlights:

• Entain seeks an extension of TAB NZ’s monopoly to cover a broader segment of online gambling, potentially affecting SkyCity.
• The Racing Industry Amendment Bill proposes banning offshore betting companies from operating in New Zealand.
• Industry stakeholders and regulators are debating the bill’s impact on competition and consumer access to online betting services.

Push for Expanded Betting Control

Entain, the offshore operator managing TAB New Zealand, is urging the government to extend its statutory monopoly over online betting. The proposal comes as the Racing Industry Amendment Bill undergoes review, with potential implications for the broader wagering sector, including SkyCity Entertainment Group Limited (NZX: SKC).

Legislative Amendments in Progress

In December, Minister for Racing Winston Peters introduced a bill to revise the Racing Industry Act. If passed, the legislation would strengthen TAB NZ’s exclusive rights by prohibiting offshore betting companies from offering services to New Zealanders. At the time of writing, the bill is under select committee review, with stakeholders submitting their positions on its impact.

Entain’s Proposal and Market Concerns

Entain has advocated for an expanded definition of “other betting services” to include a wider range of online gambling activities. This move could significantly impact competitors, including SkyCity’s digital operations. The proposal has sparked debate, as industry players assess the implications of further limiting competition in the online betting sector.

Implications for the Betting Industry

If the bill is enacted with Entain’s suggested amendments, it would cement TAB NZ’s position as the sole legal provider of online betting services in New Zealand. This could reshape the market, restricting consumer choice while potentially increasing government revenue from regulated betting. Industry analysts are closely monitoring how the government responds to Entain’s lobbying efforts.

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