Entain has signed a 25-year deal to assume control of NZ TAB’s betting and broadcast operations.
The Ladbrokes and Neds owner will take the reins of the NZ Totalisator Agency Board (TAB) on June 1 2023 after promising to pay $900 million over the next five years and inject money into New Zealand’s three racing codes.
The green light from the New Zealand government was the final confirmation Entain and NZ TAB were waiting for.
Entain Will Pay $150 Million upon Approval
The deal brings optimism and an element of predictability for an NZ betting industry that has seen a drop in revenue recently. The country’s Racing Minister Kieran McAnulty called the “monumental.”
The deal stipulates that Entain will pay $150 million immediately as the deal is approved. 50% of all the revenue will also be shared, with annual payments of a minimum of $150 million for the first half-decade guaranteed.
Under the deal, all of NZ TAB’s 450 employees would keep their jobs, and Entain won’t be able to sack anyone in the next two years.
Better Harm Minimization Technologies
The London-listed betting group has also pledged to spend money to help address problem gambling. McAnulty said that Entain possessed “better harm minimization technologies” than NZ TAB and that facial recognition tools can now be used in New Zealand too.
According to the Racing Minister, $5 million will be paid to address the problem gambling issue upon approval of the deal.
TAB chairman Mark Stewart said that Entain was a reputable name in the betting industry and despite recent controversies, he was sure NZ TAB made the right move by picking the Ladbrokes and Neds owner as their partner for the next 25 years.