New Zealand Grants TAB NZ Full Online Betting Monopoly - What This Means for UK

On June 28, 2025, New Zealand enacted a landmark law granting TAB NZ exclusive control over all online sports and racing betting, cementing a 25-year operational partnership with global betting giant Entain. While the government bills this move as a way to protect local revenues and bolster the racing industry, critics warn it raises serious antitrust concerns and seduces consumer choice in the digital betting market.

What the New Law Does

The Racing Industry Amendment Act 2025 extends TAB NZ’s monopoly from land-based operations to the digital space, effectively making it the sole legal provider of online sports and racing betting in New Zealand. Offshore operators, who previously captured up to 90% of the market, must now exit when the 60-day grace period ends or face penalties.

Enforcement measures include:

• ISP blocking of unlicensed betting sites
• Mandatory account shutdowns for New Zealand customers
• Fines of up to NZ$5 million for corporations and NZ$300,000 for individuals

One of the law’s crucial goals is to recover hundreds of millions in lost revenue, but it also grants unprecedented power to a single operator, enforced by the Department of Internal Affairs.

The Government’s Justification vs. Monopoly Risks

Officials argue the monopoly is necessary to stop offshore revenue leakage, increase tax receipts, and sustain the NZ$1.9 billion racing sector, which supports over 13,000 jobs in the country.

As part of the deal, Entain, TAB NZ’s operational partner, has pledged a NZ$100 million investment in racing infrastructure. Government officials claim this will create a better regulated and more sustainable gambling environment.

But monopolies often come at a cost, and critics have been quick to point out potential consequences:

• Poorer odds and less favourable payouts
• Reduced innovation and slower adoption of new technology
• Lower service quality and fewer responsible gambling tools

Entain may promise to match odds with its Australian brands,  but the question  of whether these assurances will hold over a 25-year exclusive term remains unanswered

Who Really Wins Here?

The biggest winners are clear! TAB NZ, Entain, and the racing industry benefit from guaranteed revenue streams, market protection, and infrastructure investment.

Winners:

• TAB NZ,  from market exclusivity and revenue
• Entain, from operational control and profit share
• The racing sector, from funding

Losers:

• Consumers (fewer choices, weaker pricing)
• Competing operators (market exit)
• Innovation (fewer incentives to improve)

Consumers, meanwhile, lose out on competitive pricing, platform diversity, and the ability to choose the best user experience from the pool of options that have existed until now.

Antitrust Questions and Market Competition Concerns

From an antitrust point of view, New Zealand’s 25-year exclusivity is a far cry from international best practices. In markets like the UK, EU, and Australia, regulators favour balancing competition with consumer protection, as opposed to outright monopolies. The move to eliminate rather than regulate offshore competition puts New Zealand at risk of entrenching market concentration and diminishing the pressure to innovate.

Giving one company full control for a long time can lead to easily predictable issues. The company might start influencing the rules to benefit itself, making it harder for others to compete. This could hurt consumers and make future changes harder to implement.

Consumers and the iGaming Contradiction

A striking contradiction emerges—while sports and racing betting are now monopolized, the government is simultaneously preparing to liberalize online casinos from 2026, with up to  15 licenses to be auctioned. This approach means casino games benefit from competition and diversity, but sports bettors are denied the same.

Consumer advocates argue that robust licensing could have protected players without sacrificing choice. Instead, the monopoly model risks higher prices, less responsive platforms, and the elimination of responsible alternatives for excluded or self-excluded bettors.

Concerns also linger about whether the monopoly will deliver on promised consumer protections, or if the lack of competition will lower standards over time.

UK vs NZ Casinos: Key Differences for Players

Online gambling is popular in both the UK and New Zealand, but the way casinos operate and how players interact with them differ quite a bit. UK players are protected by one of the strictest regulators in the world, while NZ players access international sites, which can offer more freedom, but also more risk.

Here’s a quick breakdown of how the two markets compare:

In short, the UK experience is safer and more structured, while NZ players benefit from flexibility, but must vet each site more carefully.

Is It Worth It?

New Zealand’s bold move to grant TAB NZ a full online betting monopoly is a clear trade-off: local economic benefits and industry stability versus the long-term risks of reduced competition and consumer harm. As the country “frees up” online casinos but tightens control on sports betting, the big question is whether this is smart policy for a small market or a risky move that hides reduced competition behind talk of reform.

Sources & Further Reading:

• The Spinoff – Why the TAB now has a monopoly on sports betting in New Zealand
• Yogonet – TAB NZ becomes New Zealand’s sole legal operator for online sports and racing bets
• NZ Department of Internal Affairs – Law changes for online racing and sports betting: What it means
• World Casino News – New Zealand to Regulate Online Casinos with 15 Licenses Auctioned