Commerce Commission Amends TAB/Tabcorp Authorisation

Following a request from TAB New Zealand, the Commerce Commission (Commission) has decided to amend the authorisation granted by the Commission to certain arrangements between the New Zealand Racing Board (now called TAB) and Tabcorp Wagering Manager (Vic) Pty Ltd (Tabcorp) to also apply to Entain Plc (Entain) and its New Zealand subsidiaries.

TAB is a statutory body that provides betting services to New Zealanders and makes returns back to New Zealand racing and sporting organisations. Tabcorp is a major Australian betting company. TAB and Tabcorp commingle their horse and greyhound totalisator betting pools to improve the betting options available to New Zealand and Australian punters. In 2016, the Commission authorised TAB and Tabcorp restricting both the take-out rates from their commingled pools (betting rules provisions) and the rebates or commissions that TAB and Tabcorp pay high volume customers (revenue leakage provisions). The authorisation expires on 29 August 2025.

Entain is a multinational sports betting company based in the United Kingdom. In June 2023, TAB and Entain entered a strategic partnership agreement whereby TAB will delegate its betting and wagering functions to Entain. TAB requested that the 2016 authorisation be amended to apply to Entain, so that Entain could engage in the authorised conduct when it took over TAB’s betting and wagering functions. TAB did not seek any other amendments to the authorisation, including to its scope or length.

The Commission may amend an authorisation if the Commission is satisfied that there has been a material change of circumstances since the authorisation was granted and it considers an amendment appropriate.

In this case, the Commission is satisfied that the decision to outsource TAB’s betting and wagering functions to Entain constitutes a material change of circumstances.

Commission Deputy Chair Sue Begg says that “The Commission considers that the amendment to the authorisation to allow Entain to give effect to the betting rules and revenue leakage provisions will result in a net public benefit compared with the situation if the amendment is not granted. The amendment reflects the partnership arrangement between TAB and Entain, and effectively allows Entain to step into TAB’s shoes in operating the commingled pools.”

Accordingly, the Commission has exercised its discretion under s 65 of the Commerce Act to make an amendment to the original authorisation to allow Entain to engage in the authorised conduct in addition to TAB.

A copy of the Commission’s determination, which includes its reasons for granting the variation to the authorisation, will be available on the Commission’s case register shortly.

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