New Zealand has undertaken its most comprehensive gambling reforms in over two decades, formally expanding TAB New Zealand’s (TAB NZ) monopoly to control online sports and racing wagers – a contract exclusively operated by new steward Entain.
The move, effective from 28 June 2025, forms part of a newly established “legislative net” designed to ringfence the domestic wagering market and block unlicensed offshore operators.
Reforms on exclusivity were passed as an amendment to the Racing Industry Act 2020 and granted Royal Assent in June, which hands TAB NZ operated in partnership with FTSE100 Entain, exclusive rights to online sports and racing wagers.
Enforcement of the contract will fall to the Department of Internal Affairs (DIA), which has already begun ordering unlicensed operators to exit the market. The Government believes the framework will improve harm prevention, strengthen regulatory oversight, and deliver a more sustainable funding model for New Zealand’s sports and racing sectors.
Entain: TAB NZ Growth Contract
Under the terms of the 2023 strategic partnership between TAB NZ and Entain Australia, the implementation of the new regime will trigger a NZ$100m payment (€55m) from Entain to TAB NZ. The agreement, which spans 25 years, is central to Entain’s expansion strategy across regulated international markets.
“Entain is proud to be building on TAB NZ’s legacy of racing and sport in New Zealand,” said Sam Moncur, Managing Director for Entain NZ.
“This legislative amendment deepens our long-term commitment to supporting communities and delivering a safer, more engaging betting experience.”
The legislation ensures that all wagering revenues remain onshore — a direct shot at the offshore black market, which until now has operated in regulatory grey zones.
According to Vicki Scott, Director of Gambling at the DIA: “We expect responsible operators to comply with this change, close New Zealand accounts, and return outstanding balances to customers. If an overseas company is offering you these bets, they are breaking the law here.”
The DIA has confirmed that multiple enforcement notices have already been issued to offshore firms ahead of the 2025 start date.
Entain has positioned the New Zealand market as a priority for growth. In the group’s Q1 2025 earnings call, newly appointed CEO Stella David described the TAB NZ deal as a “key international opportunity”, highlighting its role in Entain’s pivot toward high-margin, tightly regulated markets.
The firm views the exclusive long-term arrangement as not just commercially valuable, but reputationally important, as it continues to distance itself from grey-market exposure.
NZ online casino bill in the works
While sports and racing betting is now the sole domain of TAB NZ, the Government has adopted a more liberal stance toward online casinos.
Through its Online Gambling Implementation Programme, the DIA is currently consulting on a new licensing regime that could see up to 15 licences issued to domestic and foreign operators.
This would overturn the current advertising ban and offer legal clarity for operators looking to enter the New Zealand iGaming space.
Industry observers believe the Government is seeking to strike a delicate balance: protecting the racing sector’s exclusive rights while broadening the online casino market to increase tax revenues and consumer protections.
Pushback from Māori Tribes
Despite broad support from government and industry, the reforms have faced criticism from several Māori iwi and advocacy groups, who argue that the legislation prioritises corporate consolidation over social equity.
“There’s a feeling this was designed for Wellington and the wagering industry — not for communities on the ground most affected by gambling harm,” said one group spokesperson.
Critics have also pointed to limited consultation and a lack of concrete measures to guarantee equitable revenue distribution or culturally tailored harm minimisation.
The Government has yet to formally respond to these concerns, but maintains that the new system is structured to balance commercial sustainability with stronger consumer protections.
Channelisation: NZ’s Real Test…
Ultimately, the success of New Zealand’s legislative net will depend on channelisation — the ability to steer consumers toward legal, regulated operators. TAB NZ and Entain now carry the burden of proof. The monopoly structure may offer stability and investment, but it must also deliver compelling products, effective harm prevention, and consumer trust to keep users from reverting to offshore alternatives.
The stakes are high. With regulatory enforcement underway and political capital spent, the government has made its bet. The question now is whether TAB NZ and Entain can truly outperform the black market, which has existed prior to reforms, or merely replace it under a legal banner.
