Entain Welcomes New Zealand's Betting Industry Legislation
Why we think this is neutral
This RNS announcement provides an update on the New Zealand government's amendments to the Racing Industry Act 2020, which establish a 'legislative net' to prevent unlicensed offshore operators from offering wagering services to New Zealand customers. While this is positive news for Entain's strategic partnership with TAB New Zealand, the announcement does not contain any financial or operational updates that would significantly impact the company's performance.
Key Points
- New Zealand government establishes 'legislative net' to prevent unlicensed offshore operators from offering wagering services to Kiwis
- Entain's strategic partnership with TAB New Zealand will benefit from the new legislation
- Entain to make an additional NZ$100m payment to TAB NZ upon implementation of the legislative net
Summary
Entain plc (LSE: ENT) is pleased to note that the New Zealand Government's amendments to the Racing Industry Act 2020 have received Royal Assent. The amended Act includes the establishment of a 'legislative net' in New Zealand and extends the statutory body TAB New Zealand's (TAB NZ) existing exclusivity for land-based racing and sports betting to include online-provided gambling. This will ensure funds staked on wagering remain onshore to maintain and improve the long-term financial sustainability of the New Zealand racing and sports industry, as well as strengthening harm minimisation measures for players.