Below are the three statments from Nathan Guy (Minister for Racing), the three racing codes and Glenda Hughs (Chair of NZRB) after today’s announced plans to amend the Racing Act 2003.
Government to amend Racing Act 2003
Racing Minister Nathan Guy has today announced plans to amend the Racing Act 2003 and enable the introduction of charges for offshore betting operators.
“These changes will help create a more level playing field for the TAB in the face of offshore competition, and ensure that offshore operators pay their fair share back to our communities,” says Mr Guy.
“By law, the New Zealand Racing Board (NZRB) is the only New Zealand-based provider of racing and sports betting via the TAB.
“This system ensures any proceeds from gambling go back to the local sporting and racing activities that make that gambling possible in the first place, and that punters operate within a regulatory framework that minimises gambling harm.
“However, a growing number of New Zealanders are now gambling through offshore betting agencies who make no contribution back to our communities.
“These offshore operators use New Zealand race information for their bets without paying a royalty back to our industry for their use. Also, by not contributing any profits back to our communities, these operators are able at work at an unfair advantage to the TAB.
“A Working Group found that in 2015, about 40,000 New Zealanders turned over $518 million offshore with $58 million in losses – this represents potential lost revenue of up to $45 million for local racing and sports organisations. The Working Group also found that these figures are likely to grow.
“Having consulted with the public, the Government is now preparing a Bill to amend the Racing Act 2003 to help keep the TAB competitive and retain New Zealand customers, and ensure that offshore operators pay their fair share back to our communities.”
The proposed changes include:
- Enabling the introduction of an information charge for offshore gambling operators using New Zealand race data. This is akin to a royalty fee for the use of racing products.
- Enabling the introduction of a consumption charge for offshore gambling operators accepting bets from New Zealand. This charge reflects New Zealand’s position that proceeds from betting should be returned to the community.
- The removal of the prohibition on the TAB taking bets during a race. Currently bets can only be placed on other sports in-game.
- The removal of the restriction that requires the TAB to offer bets only on sports represented by National Sporting Organisations.
The rate of the fees will be set in subsequent regulation and will be subject to consultation. However the Government expects each of the charges to be in line with two per cent of turnover, as recommended by the Working Group.
The Government has referred the Working Group’s proposal of permitting betting on novelty prediction events to a wider review of gambling being undertaken by the Minister for Internal Affairs.
“These changes are not designed to get more people gambling – it’s about recognising the value of New Zealand events to offshore operators, and attracting New Zealand money currently gambled overseas back within our framework. This will help support local racing and sports.”
Changes are also being proposed to the formula in the Act that determines how the proceeds of betting are allocated to the racing and sports sectors.
“The NZRB and Sport New Zealand have negotiated a new formula, which is based on net betting revenue (NBR). Payments to sport would be calculated after GST, gambling duty and the problem gambling levy are deducted.
“The new formula will account for the growth in sports betting. It will provide a greater return to sports organisations, while still benefitting racing as sports betting continues to grow in popularity.”
A Bill is now being prepared for introduction to House as soon as practicable.
The New Zealand racing industry is a major contributor to the economy, generating $1.6 billion in gross domestic product and providing for 17,000 full-time jobs.
Racing codes endorse proposed changes to the Racing Act
New Zealand’s three racing codes – New Zealand Thoroughbred Racing (NZTR), Harness Racing New Zealand (HRNZ)and Greyhound Racing New Zealand (GRNZ)– have endorsed the proposed changes to the Racing Act announced by Racing Minister Nathan Guy today.
The proposed amendments would clear the way for the introduction of a Race Fields product fee which is expected to have substantial benefits for all codes.
“This represents a significant step forward for our industry and is something we have been advocating for some time,” NZTR chairman Dr Alan Jackson said.
“The proposed changes will make the industry more competitive in an increasingly complex wagering market and provide real benefits for our stakeholders.
“We thank and congratulate the Minister for his work on this vital project.”
HRNZ Chairman Mr Ken Spicer also welcomed the announcement. “This is a significant development for the New Zealand Racing Board and the wider racing industry, with the aim of providing a level playing field in an increasingly competitive wagering environment.
“The internet respects no borders and this legislation will ensure any wagering operator taking betting on NZ racing pays a product fee for that privilege.
“This will provide a legitimate and overdue funding source that will help sustain and grow stakes within the industry for the benefit of our participants. I congratulate the Minister on his efforts in leading this significant development.”
GRNZ Chairman Mr Craig Rendle added his support. “The export market is an important growth area for greyhound racing, and indeed all racing, and the introduction of a royalty fee for overseas operators to use our products will help strengthen our future, and the contribution we make as an industry to New Zealand.
“The Minister’s plans to amend the Racing Act are a significant milestone for the industry, and I congratulate all involved in progressing it to this stage.”
NZRB Welcomes Proposed Amendments to Racing Act 2003
The Chair of the New Zealand Racing Board (NZRB), Glenda Hughes, welcomes today’s announcement by Minister Nathan Guy regarding proposed amendment to the Racing Act 2003.
“This important amendment will provide significant benefit to New Zealand racing and sport; we are delighted to have this recognised by Government and thank them for their ongoing support of our industry,” says Ms Hughes.
“With these proposed changes, we will be able to ensure significantly more funding is provided back to support the thousands of Kiwis who work or participate in, and enjoy racing and sport around the country.
“With the rapid and broad growth of online betting competition, we have seen more and more of potential industry income lost overseas.
“These changes help keep this income in New Zealand, where it can support our people and help grow our fantastic racing and sports programmes to even greater success.
“NZRB is also continuing to work on improving its competitiveness to enhance our customers’ experience and ensure they can receive the same level of service and options as they find offshore,” says Ms Hughes.
Approved By Dean Baring www.harnessbred.com
Driving The Future Of Harness Racing
