TAB New Zealand has chosen the sports betting company Entain to partner to acquire management rights to the New Zealand sports betting monopoly. The term of the strategic relationship is 25 years.
Yogonet reported that TAB New Zealand previously won the sports betting monopoly, beating Tabcorp. The arrangement between TAB NZ and Entain, including the timeline for completion, and payment by Entain of as much as $160 million, still requires approval by the New Zealand Minister for Racing.
The Australian Financial Review quoted TAB NZ CEO Mike Tod that the selection of Entain was “a significant milestone towards the transformation of TAB NZ and those who rely upon its growth and long-term success.” He added, “This proposed strategic arrangement with Entain provides a certain, material and immediate uplift in the funding TAB NZ can provide New Zealand racing and sports ensuring that these industries not only survive, but thrive.”
Entain CEO Dean Shannon added, “We are excited to be selected by TAB NZ as its preferred partner. This is a unique opportunity to shape the future wagering experience for customers and to support New Zealand’s racing and sporting industries.” He continued, “We have a compelling vision for the future of TAB NZ, which includes a renewed focus on innovation and technology, and a long-term commitment to all racing, sport and industry stakeholders.”
The semi-privatization of gambling in New Zealand followed closely upon a review of the industry that was done by former Racing NSW chairman John Messara. He told the Review, “due to its lack of scale, [TAB NZ] will not be capable of providing a best-in-market offer to meet its customer needs, as it will be unable to sustain the level of ongoing capital investment required to remain competitive with other international wagering operators of scale.”
