Entain not fazed yet by prospective New Zealand open casino market

Entain has told SBC News that it ‘generally’ supports the forthcoming expansion of New Zealand’s online casino market, but local reports suggest that market incumbents have some doubts.

New Zealand looks set to significantly expand its online casino market, with plans to issue 15 three-year licences by early 2026. This has got some of the local firms with a strong foothold in the market a bit concerned.

Reports from the Pacific nation suggested that SkyCity Entertainment Group and TAB NZ have both argued for the number of licences to be dropped, citing the impact an open market of 10-15 licences could have on the domestic market.

Radio New Zealand (RNZ) reported that SkyCity wrote to Internal Affairs Minister Brooke van Velden in March 2024 calling for only five licences to be issued, while TAB NZ contacted Racing Minister Winston Peters, calling for between five and seven to be issued.

​​Entain’s involvement in New Zealand is guaranteed, having won the operating tender of the TAB NZ wagering contract in 2023. The tender awarded Entain a 23-year licence to operate TAB NZ, on the condition of providing a minimum funding of NZ$1.0bn to the NZ Racing Board – to be paid over an initial period of five years.

Speaking to SBC News, an Entain spokesperson said: “Speaking generally, we support the regulation of online gambling in New Zealand and the associated benefits. As the licensing regime is still being developed at a policy level, we can’t comment further at this stage”.

Changing times, changing outlooks?…

It is important to note that although Entain is not a homegrown New Zealand enterprise, having been founded in the UK, the company plays a central role in the funding for sports and community initiatives referenced by TAB NZ.

Entain’s 25-year contract with TAB NZ was secured prior to Parliament settling on terms to liberalise the online casino market in 2026. Political scrutiny continues on which safeguards and protections should be applied to NZ online casino market, with regards to advertising, compliance and safer gambling.

The FTSE100 gambling group targets a major expansion the Oceania markets, enlarging its market share in a “soft Australian gambling market” and ensuring gold standing in New Zealand for TAB NZ.

In the TAB’s letter to the racing Minister, company CEO Nick Roberts asserted that there could be “severe implications for TAB NZ if this fast-growing online casinos market cannibalises our existing operations by being legitimised in NZ in an open market context”.

He also stated that: “Settings that create an open market would allow for multinational domination over NZ’s existing operators, establishing an unsustainable model for traditional gambling products, and risking our ability to appropriately fund racing and sport – all while driving gambling profits offshore and delivering worse harm outcomes for Kiwi consumers.”

While TAB seems alarmed, its wagering partner Entain appears more reserved if its statement to SBC News is anything to go by – though as the firm is monitoring developments closely, its opinion may change as the regulatory picture around New Zealand’s online casino market becomes clearer.