Planning changes to its gambling industry, New Zealand hinted at the possibility of introducing legal online gambling. While the country is considering regulating iGaming by 2026, a new proposal calls for changes to the existing framework that would propel the monopoly of the operator TAB NZ.
TAB NZ May Grow Its Monopoly Model
Currently, TAB holds a monopoly on sports betting, including greyhound and horse racing activities. However, under a proposal tabled by Racing Minister Winston Peters, the operator’s monopoly would expand to cover sports and racing betting, as well as online wagering activities, local media outlet RNZ reports.
Besides holding a monopoly over horse racing and sports betting, TAB supports those sports in New Zealand, providing invaluable funding. An estimated 90% of the revenue of the racing industry comes from the monopoly.
According to Peters, the new proposal seeks to ensure the future of the country’s racing industry. This would be achieved through changes in New Zealand’s Racing Industry Act 2020, granting TAB a monopoly over sports and race betting regardless if conducted via land-based venues or online.
“This legislation will enhance the long-term sustainability of New Zealand’s racing industry by making TAB NZ New Zealand’s sole provider for sports and race betting both on land and online. Growing competition from offshore online betting operators poses a significant threat to the TAB NZ model.“
Winston Peters, Racing Minister
Peters deemed the opening of the online betting market to include offshore operators as a “significant threat” to the established monopoly model. Besides growing TAB’s monopoly, the bill seeks to fuel the operator’s success, while granting new regulatory authority to the minister.
Prior to making changes to the Racing Industry Act 2020, the new proposal needs to receive approval from the country’s lawmakers. After its introduction, the bill was referred to the Governance and Administration Committee where it will seek a green light ahead of gaining further traction.
Online Gambling Still in the Making
The announced proposal comes at a time when iGaming legislation looms in New Zealand with lawmakers considering a comprehensive framework for the activity. Ultimately, the iGaming regulation seeks to protect younger audiences from gambling and gambling harm and at the same time impose a limit on the number of online gambling licenses.
In addition, to protect children, the operators that secure an online gambling license would have to adhere to strict rules, including the implementation of an effective age verification system.
Not unexpectedly, per the proposed rules, advertisements that may appeal to children would be prohibited. Still, it doesn’t look like lawmakers are in a hurry, considering that the activity is expected to be legalized in the next couple of years.
