New Law Empowers TAB NZ as Sole Online Betting Operator to Boost Local Revenue

The New Zealand Parliament has passed critical amendments to the Racing Industry Act 2020, a move the Government says will safeguard the future of the racing industry and strengthen the regulation of online gambling. Spearheaded by Racing Minister Winston Peters, the new legislation ensures TAB NZ will now be the sole legal provider of online sports and racing betting in the country.

Minister Peters lauded the passage of the bill as a major step forward for the sustainability of a vital sector in New Zealand’s economy and cultural identity.

Economic Backbone of Communities

“The racing industry generates $1.9 billion for the economy and employs 13,500 people across the country,” Peters said. “It is deeply embedded in the fabric of both urban and rural communities.”

From racecourses and breeders to trainers and punters, racing is more than just a pastime—it’s a crucial economic pillar that underpins employment and contributes to New Zealand’s international sporting profile.

However, the industry has in recent years faced growing pressure from unregulated overseas betting platforms, which have siphoned off millions in potential revenue. These platforms operate outside New Zealand’s legal and tax frameworks, putting domestic funding at risk.

Centralised, Regulated Betting to Preserve Revenue

To combat these challenges, the legislation grants exclusive rights to TAB NZ to operate all online betting activities on racing and sporting events within New Zealand.

This shift will:

• Redirect punter spending away from offshore operators to domestic betting channels.

• Help retain critical revenue streams needed to support the broader racing ecosystem.

• Guarantee that funding for both racing and national sports codes remains within New Zealand.

“This legislation ensures that punters’ dollars stay in the country, helping fund not just racing, but a wide array of grassroots and professional sporting activities,” said Peters.

Stronger Consumer Protections and Oversight

Beyond revenue retention, the legislation introduces a series of regulatory measures aimed at harm minimisation and consumer protection. These include:

• New regulation-making powers allowing future adaptation to a rapidly evolving betting environment.

• A regulatory backstop to ensure TAB NZ meets its obligations to consumers and operates transparently.

• Increased ministerial and regulatory oversight, ensuring that if TAB NZ’s performance falters, remedial action can be taken promptly.

These changes reflect a growing concern about the social harms of unregulated gambling and demonstrate the Government’s commitment to a responsible and controlled betting market.

Industry Collaboration and Development

Peters also welcomed TAB NZ’s recent announcement to establish an industry advisory committee composed of sector leaders and stakeholders. The committee is expected to:

• Strengthen ties between the betting operator and the racing community

• Provide guidance on strategic priorities

• Encourage innovation and sustainable growth

“I am supportive of the industry taking the initiative to enhance development,” Peters said. “This new advisory group will offer opportunities for TAB NZ to work more closely with those who know the industry best.”

A Pivotal Moment for Racing and Sports

The timing of this legislation is crucial, as the global betting landscape continues to expand rapidly. By formalising a central, accountable operator, New Zealand positions itself to protect its economic and cultural interests, while also ensuring consumer safety in a fast-paced digital betting environment.

The Government’s reforms are expected to be rolled out in phases, with the Ministry of Internal Affairs and TAB NZ working jointly to implement compliance, transparency, and consumer protection mechanisms.

Stakeholders in the racing, sports, and gambling sectors have welcomed the bill, with many citing it as a long-needed realignment of commercial priorities, public benefit, and sector integrity.