October 18, 2025

The NZ Racing Ban act update aims to ban offshore betting in New Zealand

If you enjoy using real money NZ casino payment methods on offshore betting sites such as Bet365 and Betway, we have some unfortunate news for you. Recently, the New Zealand government has put into place amendments to the Racing Industry Act of 2020, which prohibits offshore betting sites, including well-known sites such as Betway, Bet365, and Betfair, from accepting online racing and sports bets wagered by Kiwis.

Furthermore, the new legislation has put in place stronger powers to reduce gambling harms. According to the new piece of legislation, no person or entity, except the state-owned New Zealand TAB (TAB NZ), is allowed to promote or accept online racing or sports bets placed by New Zealanders. This gives TAB NZ and its derivative Betcha a full monopoly over online racing and sports betting, expanding the monopoly it already has over physical horse race betting throughout New Zealand.

The new Racing Act

The amendments made to the Racing Industry Act of 2020 have been implemented to increase the prevention of gambling harms by introducing stronger protocols for Kiwis. The changes made to the law prohibit offshore betting sites, such as the betting sites mentioned earlier, from accepting any online racing and sports bets made by Kiwis.

Furthermore, the new law provides the state-approved gambling company, the TAB or TAB NZ, and its derivative company, launched over a year ago, Betcha, an expansion over its domestic monopoly to include online racing and sports betting by allowing them to have the sole legal right to promote and accept racing and sports bets wagered by New Zealanders.

New Zealand’s gambling regulator, the Department of Internal Affairs (DIA), hopes the new law will prevent consumers, or bettors, from staking bets with offshore betting companies that may not meet local protection standards or honour payouts.

In addition, the new law will require TAB NZ to provide information on its performance to the government, including protocols in place and actions taken to reduce gambling harms, in order to safeguard Kiwis. The DIA hopes that these measures will assist in ensuring that TAB NZ does not remove or restrict any punter without a valid reason.

Impacts on Key Stakeholders

Entain, a sports betting company run out of the UK with holdings across the world, is currently in the third year of its partnership with TAB NZ. Entain will mark the recent amendments made to the Racing Industry Act of 2020 with a payment of NZ$100 million into the New Zealand racing sector as terms of their 25-year agreement made with TAB NZ, commencing in June 2023.

To commemorate TAB NZ being the sole proprietor of online racing and sports betting in New Zealand, Entain has chosen to honour the agreement made with TAB NZ. Furthermore, the initial terms of the 25-year agreement include a commitment from Entain that TAB NZ will receive a minimum of NZ$150 million each year over the first five years of the partnership via gross profit shares and additional payments.

The partnership provides Entain with complete control of TAB NZ, including online racing and sports wagering. Additionally, Entain will provide a broader scope and range to TAB NZ marketing teams, which includes live streaming of races. Entain will also assist with punter responsible gambling assistance tools, such as setting restrictions on wagering amounts or setting betting curfew times to reduce gambling harm.

Millions lost to offshore betting sites

In a recent parliamentary debate, it was announced that an estimated NZ$180–NZ$200 million was lost offshore via online betting transactions annually. Members of Parliament reiterated that the newly amended bill will ensure that more of this money is retained in the country and can be used to support the sustainability and growth of horse racing and grassroots sports in New Zealand.

The new amendments will also come as a welcome development for New Zealand’s vast number of National Sporting Organisations (NSOs), which will be in line for a funding boost from the initial NZ$100 million payment from Entain to TAB NZ. In addition, the move to ban offshore betting operators will assist in preserving New Zealand’s racing industry, as TAB NZ provides 90% of the racing industry’s revenue, which currently supports over 13,500 jobs and contributes over NZ$1.9 billion annually to New Zealand’s economy.

Additionally, with more bets being placed through TAB NZ and Betcha due to the new legislation, more funding can be allocated to grassroots sports, as currently Basketball NZ received 27% of its revenue from TAB NZ in its 2024 financial report, and Baseball NZ received NZ$500,000 in its 2024 financial year, to name a few. With an impending increase in punters betting in New Zealand, more funds can be allocated to each sporting code and thus improve grassroots sports throughout New Zealand.

As mentioned earlier, the new amendments to the Racing Industry Act of 2020 make offshore betting with sites such as Bet365, Betway, and Betfair illegal. New Zealand bettors are also encouraged not to seek alternative avenues to wager with offshore betting sites, such as through VPNs, as this is illegal and could result in the banning of players from online betting. The law only allows betting with the state-owned betting company TAB NZ and its derivative company Betcha.

The lack of betting operators will make online betting problematic for the Kiwi punter due to the lack of diversity and betting odds offered. However, Entain has ensured the Kiwi punter that they will use Ladbrokes for all odds, which currently offers competitive odds for the Aussie market.

Oversight and Future Developments

The Minister of Racing for New Zealand recently came out and stated that TAB NZ having a monopoly over racing and sports betting will ensure greater measures for regulations for online gambling, thus further reducing gambling harms. The minister added that having only one regulator would make it easier to monitor consumer obligations.

TAB NZ can report back to the government regarding any improvements to measures put in place to reduce gambling harm, including the ability to reduce the frequency of bets being placed and processes to limit online betting for people who have been self-identified as problem gamblers.

The Online Casino Gambling Bill was also introduced this week. This bill was implemented to ensure that any online casino operating within New Zealand, including offshore betting sites, will be prohibited from operating or advertising in New Zealand without a licence.

The two new laws being implemented indicate how vastly different online casino and sports betting are being treated under New Zealand’s evolving digital gambling laws, as offshore casino sites are still allowed to operate under the new laws, while offshore racing and sports betting are not.

Conclusion

The recent amendments made to the Racing Industry Act of 2020 have shaken New Zealand’s online racing and sports betting to its core. The amendments prohibit offshore betting sites, such as Bet365 and Betway, from accepting bets placed by Kiwis.

The policy shift only allows TAB NZ and its derivative company, Betcha, to have the sole legal right to promote and accept racing and sports bets wagered by New Zealanders. Bettors will now have a limited selection of odds available when placing bets, as TAB NZ partner Entain only uses Ladbrokes, which currently offers competitive odds in the Australian market.

With all the changes being made, Kiwis can rest assured knowing that they will still be able to place their bets with a reputable company that is licensed in New Zealand and that will honour payments.