New Analysis Details Government Annual Gift Of $119m To Multinational Gambling Company
Greyhound Racing New Zealand has released new analysis detailing the extent to which the Government is financially supporting a multinational gambling giant.
It comes as the Government is expected this week to pass the Racing Industry Amendment Bill into law, creating a digital monopoly on gambling for Entain.
The analysis, prepared by an independent consultant, details the financial help required for Entain to meet its funding guarantee of $150m per year to the racing industry.
The funding guarantee, combined with a guarantee to retain approximately 450 TAB staff until June 2025, were set under the terms of the agreement when the TAB's betting business was outsourced to Entain in 2023.
The analysis estimates in dollar terms the value of the Government's support to bail out Entain so it can limit its losses in meeting the terms of its deal until 2029.
The passage of legislation to block New Zealanders from gambling offshore will boost Entain annual revenues by at least $75m per year.
The retention of gambling on Australian greyhounds after the ban comes into effect, will preserve Entain gross betting revenues of approximately $44m per year.
Without these actions by the Government, Entain would be faced with an estimated revenue deficit of $26m per year.
Greyhound Racing New Zealand CEO Edward Renell said:
'The Government has chosen to bail out a multinational gambling company at the expense of ordinary Kiwis.
'It will shamelessly pass laws and create digital monopolies so Entain can meet its funding guarantees and obligations to private shareholders.
'Entain won't need to compete to win new revenue as it was brought in to do. It will be gifted it by banning Kiwis from using non-Entain betting providers and retaining gambling on Australian greyhound racing.
'The decision to keep taking money from Australian greyhound races, but strip thousands of regional Kiwis of their livelihoods and passion, is depressingly cynical and hypocritical.
'Gross income of $44 million dollars each year will now be sliced up between the Government, Entain and the equine codes and not go to the thousands of trainers, owners, and breeders involved in greyhound racing.
'It's a reverse Robin Hood. The Government is taking money from the provinces to save face on a bad deal and keep the money flowing into Entain, thoroughbred and harness racing.'
Notes:
Timeline of Entain – TAB deal:
March 2023: TAB and Entain agreed to enter a strategic partnership agreement where TAB has delegated its betting and wagering functions to Entain.
May 2023: The partnership was approved by then Racing Minister Labour's Kieran McAnulty, outsourcing TAB's monopoly betting operation to Entain for 25 years, a UK-listed multinational. 50% revenue share between Entain and the TAB.
May 2023: TAB sought a variation to its authorisation of its arrangements with Tabcorp to reflect strategic partnership with Entain.
June 2023: The partnership officially started on June 1, 2023.
Entain Guarantees under the terms of sale:
Entain provided TAB $150 million upfront a with a guaranteed $150 million for the first five years.
$10 million sponsorship for racing carnivals.
On passage of the Racing Amendment bill into law: $100 million payment from Entain, $80 million to be shared between thoroughbred and harness racing
Entain committed to no forced redundancies for first 24 months of the agreement, due to expire this month (June 2025).
Book value of Entain's TAB licence assets, if the Racing Amendment legislation goes through:
According to Entain's March 2025 annual report, the estimated value of the New Zealand TAB licence assets was $2.7 billion NZD, including the potential introduction of the legislation.
About GRNZ
Greyhound Racing New Zealand is the governing body for greyhound racing in New Zealand and provides governance, support and assistance to the affiliated clubs in the sport of greyhound racing.
The decision to end greyhound racing has significant economic and social consequences. The sport provides 1,054 full-time equivalent jobs and contributed $159.2 million to the economy in FY23.
The Government announced on 10 December 2024, an intention to legislate to ban greyhound racing in New Zealand from 31 July 2026.
Visit www.grnz.co.nz for more information.
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