New Zealand racing bill amendment enforced, TAB monopoly extended online

New Zealand’s amended racing law has officially taken effect, making TAB NZ the sole operator for legal online sports and racing betting as offshore providers must withdraw.

TAB New Zealand

The government of New Zealand has enacted new legislation establishing TAB NZ as the exclusive online betting service for sports and racing.

The bill received Royal Assent and came into force on 28 June, introducing measures many MPs believe could significantly strengthen the national wagering sector.

Amendments to the Racing Industry Act 2020 were approved last week with backing from all six parliamentary parties.

TAB NZ monopoly strengthened as igaming liberalisation nears

The changes make it unlawful for foreign operators to accept bets, while also expanding tools to address gambling harm. According to H2 Gambling Capital, only 10% of online betting revenue is currently generated within New Zealand.

TAB NZ’s monopoly on sports betting will operate alongside a restricted but liberalised online casino market expected to launch in 2026. Operators including SkyCity, TAB NZ, Christchurch Casino, Grand Casino Dunedin, 888, Bet365, SpinBet, Spin City, Class 4 societies and Super Group have already shown interest in joining once the market opens.

Racing Minister Winston Peters stated the reforms will enhance the sustainability of the industry, which contributes NZ$1.9bn annually and employs 13,500 workers.

‘If an overseas company is offering you bets, they are breaking the law’

The Department of Internal Affairs regulates gambling in New Zealand, and its gambling director Vicki Scott outlined how players should respond to illegal providers.

“We advise New Zealanders to avoid placing bets with any brands other than TAB and Betcha,” Scott said. “If an offshore operator offers you bets, they are acting unlawfully.

“Players should be cautious of these operators, who may be licensed in places with weak consumer protections. They could fail to address gambling harm or even refuse to return balances and winnings.”

Racing legislation delayed by committees

TAB already controls 90% of New Zealand’s racing wagering. The new law now secures its monopoly across both land-based and online channels.

The legislation was first tabled in December but encountered delays in parliamentary committees before final approval.

Peters added the reform will shield TAB from the black market and support growth in the racing sector.

“Sport and racing hold an important role in communities across New Zealand,” he said. “With online betting growing fast, these measures protect TAB NZ’s revenue, ensuring industry progress.

“TAB remains the core funding engine for the racing sector and contributes to many sports codes. This law ensures local betting money stays in New Zealand rather than leaving for offshore companies.”

Hundreds of millions lost to black market racing operators in New Zealand

During debate last week, Green MP Steve Abel said around $185m in online racing stakes is lost offshore annually.

“This law will help retain more of those funds in New Zealand,” Abel said.

National Party’s Tim Costley urged officials to consider future betting products such as virtual and fantasy sports.

“We’ve got students here from Kaingaroa School today in the gallery. I’m sure they’ll find this interesting. It’s worth considering for future amendments. For now, I support the bill,” he added.

Green MP Celia Wade-Brown criticised the committee delays, calling it “regrettable” that the bill lacked urgency.

What does New Zealand’s racing bill amendment entail?

The updated law gives new ministerial powers, requiring TAB NZ to provide more transparency on its operations.

Harm minimisation rules already applied in retail will now extend to online, helping TAB identify and act when customers show signs of problem gambling.

“The intent is to ensure TAB NZ cannot restrict lawful customers without a valid reason, such as identified gambling harm,” the government explained.

The Department of Internal Affairs will temporarily oversee TAB’s online monopoly until a permanent regulator is set up for the future open iGaming market.

New Zealand is currently drafting laws for the liberalised iGaming framework, set for 2026, which will issue up to 15 commercial licences.

Entain to inject NZ$100 million into New Zealand

TAB’s partner Entain has pledged to invest NZ$100m into the racing sector following the law changes, reflecting its long-term commitment to the market.

TAB NZ CEO Nick Roberts praised MPs for approving the updated Racing Industry Act, writing on LinkedIn: “[The] Kiwis are better for it.”

Entain signed a 25-year partnership with TAB NZ in March 2023, covering wagering, broadcasting, and funding.

Entain’s MD for Australia and New Zealand Sam Moncur added: “We’re proud to help secure the future of New Zealand’s racing industry, while ensuring Kiwi sports continue to thrive.”