NZ government amends Racing Act to charge offshore operators
NEW Zealand Racing Minister Nathan Guy has announced plans to amend the Racing Act 2003 which will charge offshore betting agencies for offering markets on local races.
The New Zealand government plans to restrict the ability of overseas gambling operators which will continue the monopoly that the New Zealand Racing Board currently holds.
The changes will include a fee for international bookmakers who want to use New Zealand racing data and a point-of-charge fee will also be placed on New Zealand sporting events.
Nathan Guy said the changes will held stave off the international competition which is taking away from the local product.
“These changes will help create a more level playing field for the TAB in the face of offshore competition, and ensure that offshore operators pay their fair share back to our communities,” Guy said.
“By law, the New Zealand Racing Board (NZRB) is the only New Zealand-based provider of racing and sports betting via the TAB.”
The best aspect of the TAB in New Zealand is that every dollar bet goes back into the industry to fund race prizemoney, and the fears of losing more customers to offshore bookmakers could in turn hurt the racing industry.
“This system ensures any proceeds from gambling go back to the local sporting and racing activities that make that gambling possible in the first place, and that punters operate within a regulatory framework that minimises gambling harm,” Guy said.
“However, a growing number of New Zealanders are now gambling through offshore betting agencies who make no contribution back to our communities.”
Guy believes the offshore betting agencies are using information provided by the TAB without paying a royalty fee and this in turn is hurting the New Zealand racing industry as a whole.
“These offshore operators use New Zealand race information for their bets without paying a royalty back to our industry for their use. Also, by not contributing any profits back to our communities, these operators are able at work at an unfair advantage to the TAB,” Guy stated.
A worrying number of New Zealand-based punters left the TAB to bet with offshore agencies over the last few years and Guy is wanting to keep that potential revenue on home soil.
“A Working Group found that in 2015, about 40,000 New Zealanders turned over $518 million offshore with $58 million in losses – this represents potential lost revenue of up to $45 million for local racing and sports organisations. The Working Group also found that these figures are likely to grow,” Guy said.
“Having consulted with the public, the Government is now preparing a Bill to amend the Racing Act 2003 to help keep the TAB competitive and retain New Zealand customers, and ensure that offshore operators pay their fair share back to our communities.”
The proposed changes include:
– Enabling the introduction of an information charge for offshore gambling operators using New Zealand race data. This is akin to a royalty fee for the use of racing products.
– Enabling the introduction of a consumption charge for offshore gambling operators accepting bets from New Zealand. This charge reflects New Zealand’s position that proceeds from betting should be returned to the community.
– The removal of the prohibition on the TAB taking bets during a race. Currently bets can only be placed on other sports in-game.
The government is predicting a 1-2 per cent charge, which keeps in line with turnover, in the hopes of seeing customers return to the TAB.
“These changes are not designed to get more people gambling – it’s about recognising the value of New Zealand events to offshore operators, and attracting New Zealand money currently gambled overseas back within our framework,” Guy said.
“This will help support local racing and sports.”
Our take on the Racing Act 2003 amendment
As a New Zealand racing supporter it’s good to see the NZRB wanting money to go back into the local product, but charging offshore betting agencies won’t help solve the problem.
The New Zealand TAB has been leaking customers at an alarming rate for the last few years and charging these agencies a fee will help generate some more income, but the punters simply won’t return.
The NZ TAB is one of the worst operating bookmakers in Australasia – take it from someone who placed his bets there for over 10 years.
It offers only average odds for both local and international racing. The bookmakers only open fixed odds betting on the day prior to the meeting – having only changed from the day of racing this season.
There are no sign up bonuses and very little incentive to keep using the NZ TAB.
If they want to keep the Kiwi dollar in their back pockets, the New Zealand Racing Board will have to wake up and start getting with the times. It’s using a backwards system which consistently has problems on the big betting days and punters are getting frustrated.
Our advice is to stick with betting using overseas agencies. Your dollar might not be going back into the industry, but you’re trying to make a profit and that can seem nearly impossible when you’re betting with an inferior betting agency such as the TAB.