The future of racing and sports wagering in New Zealand is one step closer to a significant change, with TAB New Zealand putting forward a formal proposal for a strategic partnership with Australian operator Entain, which owns Ladbrokes.
In an announcement today, TAB NZ has announced Entain, which is listed in the UK, as its preferred partner for a 25-year strategic arrangement, subject to approval from Racing Minister Kieran McAnulty.
It’s been reported Entain was in a three-way race with other Australian outlets Sportsbet and Tabcorp.
The announcement essentially means Entain would take over the running of most TAB operations.
It follows a lengthy process opened up to overseas wagering companies as the New Zealand TAB faced increasing overseas competition and rising costs, with Entain winning the race due to its “operational expertise, cultural alignment with TAB NZ and the commitment of the partner to uplifting TAB NZ’s harm minimisation and responsible gambling efforts.”
“TAB NZ faced an uncertain future in a David and Goliath battle with international wagering operators and a lack of capital to both compete and meet its potential,” said the TAB's chief executive Mike Tod.
“Today’s announcement is a significant milestone toward the transformation of TAB NZ and those who rely upon its growth and long-term success. In the absence of a strategic partnering arrangement, TAB NZ would be further cutting distributions in the next financial year.”
The announcement essentially means Entain would take over the running of most TAB operations - with NZ jobs guaranteed for 24 months. (Source: 1News)
The deal would bring guaranteed funding to TAB NZ of greater than $1 billion in the first five years to help revitalise a struggling racing industry.
Under the agreement is the assurance of a 24-month employment guarantee for TAB NZ employees.
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