New Zealand Government Rejects TAB’s $150m Online Casino Proposal
The New Zealand Government has dismissed a NZ$150m (US$87.2m) bid from TAB, which sought to enter the country’s emerging online casino market.
Key Highlights:
- TAB proposed a NZ$150m payment to the government for exclusive online casino market rights.
- Internal Affairs Minister Brooke van Velden firmly rejected the offer.
- Racing Minister Winston Peters confirmed no legal changes would be made for TAB’s entry.
Government Stands Firm Against TAB’s Proposal
According to RNZ, TAB approached the government with a significant financial proposal aimed at securing an online casino licence. However, despite the substantial offer, the proposal was met with outright rejection.
New Zealand is currently in the process of auctioning 15 online casino licences, aiming to establish a regulated digital gaming sector. Despite this, TAB, a statutory entity and the nation’s sole operator for sports and race betting, remains restricted from expanding into online gaming.
Seeking to alter this position, TAB argued in a ministerial letter that its long-term sustainability depended on access to the online casino sector.
The correspondence, sent in December 2023 but only recently disclosed, outlined the company’s willingness to make a substantial capital payment in exchange for exclusive market rights.
Ministerial Pushback Against Online Casino Expansion
However, Internal Affairs Minister Brooke van Velden decisively rejected the proposal, asserting that the government should not facilitate casino gambling.
“Not under my watch,” Van Velden told RNZ. “I don’t believe the government should be involved in casino gambling. Our priority should be addressing essential services for people, not providing an online casino platform.”
Racing Minister Winston Peters, who was also informed of TAB’s aspirations, reaffirmed the government’s stance, stating that there would be no legislative amendments to accommodate TAB’s request.
TAB’s Partnership with Entain and Financial Implications
TAB is currently engaged in a 25-year partnership with global gaming operator Entain. Under this arrangement, TAB stands to receive direct payments from Entain if its monopoly status extends into the online domain. However, due to regulatory delays, this transition has not yet occurred.
TAB’s letter noted that the delay in regulatory approval is costing the organization approximately NZ$1.5m per month in potential payments from Entain.
Despite the financial incentives presented, the New Zealand Government remains steadfast in its decision, reinforcing its cautious approach to online gambling regulation. Online casinos in New Zealand continue to be a topic of debate, as the government navigates regulatory challenges in this growing industry.
