New Zealand racing industry to benefit from new legislation against overseas bookmakers

Cheaha winning comfortably on debut at Arawa Park on Wednesday. Photo / Kenton Wright (Race Images)

Legislation to stop the drain of New Zealand money to overseas bookmakers is likely to come into effect next June but the parliamentary process to make it law could start as soon as Tuesday.

Racing Minister Winston Peters has announced the new legislation which would bring New Zealand into line with many other countries in restricting foreign betting operators from taking online bets from New Zealand, providing TAB NZ with a monopoly.

The legislation has been widely appplauded by racing industry officials as little, or in some cases no, money is returned to New Zealand racing and sport organisations from overseas operators.

What is being termed the “legislative net” will stop that flow overseas and provide a significant boost in income to the industry here which provides the equivalent of 14,000 fulltime jobs but has a more wide-reaching economic impact, particularly in the regions.

The legislation would trigger what is believed to be a $100 million payment to the New Zealand TAB from their strategic partner Entain, which would in turn be paid out to racing and sporting organisations.

The money is particularly needed for infrastructure in racing as several tracks around the country need urgent work to be safe for consistent racing, with race meeting abandonments having cost the industry tens of millions of dollars in recent years.

The Herald understands the legislation could be introduced to Parliament as soon as Tuesday for its first reading and then head to a select committee process.

That would include the opening of submissions to the select committee for around six weeks, which would then be considered by the committee before it makes their recommendations to the minister.

That process could take until around April before the legislation, whether in its current or an altered form after select committee recommendations, returns to the House for its second and third readings.

It is understood the legislation has enough suppport across the main political parties to pass into law and come into effect around next June.

News of the process starting has delighted racing authorities who have been powerless to stop overseas operators taking bets from Kiwis with little return to help the industry which has struggled for much of the last decade.

New Zealand Thoroughbred Racing chairman Russell Warwick applauded the Racing Minsiter for his continued support of the NZ racing industry.

“This announcement is yet another significant milestone for New Zealand racing that has been facilitated by the Minister for Racing and is a major piece of the puzzle to ensure racing is sustainable long-term,” Warwick said.

“The minister has been the architect and visionary behind the resurgence of racing in New Zealand and his relentless support is greatly appreciated by the entire industry.”

Harness Racing New Zealand also welcomed the legislation and pointed to the positive effect it will have on employment.

“This is welcome news for everyone involved in the New Zealand harness racing industry,” says Harness Racing chief executive Brad Steele.

“It is not widely understood that our harness racing industry is an important employer in regional centres throughout New Zealand.

“It’s not just trainers, drivers, stable-hands – it’s a whole ecosystem that includes animal feed suppliers, equine equipment, veterinary services, transportation, catering and so much more.”

Michael Guerin wrote his first nationally published racing articles while still in school and started writing about horse racing and the gambling industry for the Herald as a 20-year-old in 1990. He became the Herald’s racing editor in 1995 and covers the world’s biggest horse racing carnivals.