Entain New Zealand Pushes Digital Growth Over Takeover Offers

Entain New Zealand has moved away from takeover offers and chosen digital growth opportunities, says its CEO Andrew Vouris.

The company won the TAB NZ wagering contract in 2023 and now aims to grow its online presence. New Zealand’s plan to give out 15 three-year online casino licenses by early 2026 makes this a smart choice. Entain has promised NZ$1.0bn to the NZ Racing Board for the first five years. This investment matters because the sector adds NZ$1.9 billion yearly to the economy and provides jobs to 13,500 people.

Entain New Zealand is the sole operator for online racing and sports betting in the country. The gambling giant sealed a 25-year strategic partnership with TAB NZ in June 2023 and made key financial commitments to dominate the market.

“We’re going to be the only operator in the market that’s able to offer sports, racing, and potentially casino. That is massive,” said Andrew Vouris, Entain Australia and New Zealand CEO, in a recent interview with the Australian Financial Review. His words express the company’s bold growth plans for the region.

The TAB NZ partnership required Entain to make substantial payments. The company paid NZ$160 million upfront to get the wagering license and later invested another NZ$100 million after law changes confirmed its monopoly status. The company then committed funding of over GBP 0.79 billion for the first five years.

The New Zealand Government changed the Racing Industry Act 2020 and received Royal Assent. This created a ‘legislative net’ that expanded TAB New Zealand’s existing monopoly on land-based racing and sports betting to include online gambling. Starting June 28, 2025, this law will stop unlicensed offshore operators from serving New Zealand residents.

Vouris pointed out some challenges despite the new laws: “Just last week, we found 200 illegal offshore operators still offering sports and racing products to New Zealanders”. This poses a challenge since Entain paid a premium for its monopoly status.

The company’s New Zealand business shows strong results with 28% year-on-year growth. They plan to keep this momentum through digital innovation and product development instead of focusing on physical venues or horse ownership.

Entain plans to bid for several New Zealand online casino licenses as the government prepares to issue up to 15 licenses this year. Companies can bid for up to three licenses each, and Entain seems ready to take full advantage of this chance.

This move into online casino operations fits the company’s goal to become “the only operator in the market that’s able to offer sports, racing, and potentially casino”. The company also plans to keep funding at about NZ$200 million yearly after the first five years.

Sam Moncur, Entain Australia and New Zealand’s Managing Director for New Zealand, showed their dedication: “Entain is proud to be building on TAB NZ’s legacy of racing and sport in New Zealand and is privileged to provide an engaging betting experience to Kiwis”.

Recent months saw the company cut about 10% of its Australasian workforce as part of a GBP 47.65 million yearly cost reduction. This change reflects their move away from ventures like racehorse ownership and betting lounges, which cost around GBP 31.77 million in what they now see as misplaced funds.

Vouris assured that these changes won’t affect their New Zealand plans: “Whatever happens in Australia with AUSTRAC, it won’t be impacting our New Zealand business at all. New Zealand is totally looked at separately, and we’re growing from strength to strength”.

The new strategy already shows good results. “We’re seeing 47 per cent of customers that had never had a racing bet now betting on racing,” Vouris said. This success in cross-selling between gambling products might extend to casino operations.

Entain’s gambling monopoly and plans for the online casino market show its focus on digital growth in New Zealand. The company seems more interested in this path than potential buyout offers that market experts think might come up.