NZ Gambling Industry Regulatory Debates and Strategic Expansions

The Gaming Machine Association of New Zealand (GMANZ) recently sought a judicial review of the Department of Internal Affairs’ (DIA) new gambling regulations in the High Court. The legal parameters of gambling in New Zealand have long been under debate. Both within the land-based and online casino sector. These regulations are part of a broader government initiative to reform gambling practices, with the final phase set to be implemented on December 1. This move has sparked intense debate among industry representatives about the practicality and effectiveness of the measures.

GMANZ, while acknowledging the importance of regulations for harm reduction, raised serious concerns about the lack of proper consultation during the development process. They argue that the new regulations, including extensive surveillance of players and stringent reporting requirements, are not only impractical but also potentially ineffective in achieving the intended harm minimisation.

Peter Dengate Thrush, Independent Chair of GMANZ, criticised the government's approach, stating, "The way these new regulations were developed without proper consultation is a continuation of the way the Government has treated those of us at the coal face.” He emphasized that frontline workers in Class 4 gambling venues are best positioned to identify potential harm, suggesting that the new regulations are more symbolic than practical.

Entain's Strategic Moves in the New Zealand Market

In contrast to the regulatory challenges faced by GMANZ, the global gambling group Entain has been making significant strides in the New Zealand market. Entain, a leader in sports betting, casino games, and interactive entertainment, reported impressive Net Gaming Revenue of over $5 billion in 2022. The company is known for its strategic growth and customer-centric approach, operating across multiple brands, languages, and currencies.

A key development in Entain's expansion strategy is the acquisition of TAB NZ. This partnership, projected to last for 25 years, is set to revolutionize the way betting is conducted and broadcast in New Zealand. The deal includes Entain's commitment to return a minimum of NZ$150 million annually to TAB NZ for the first five years, alongside the integration of its advanced tools for safer gambling.

The Impact of Entain's Acquisition of TAB NZ

The acquisition of TAB NZ by Entain is expected to have a significant impact on New Zealand's gambling landscape. National sports organizations are set to benefit from a one-time funding increase of NZ$15 million, and Racing Codes sales are anticipated to see a considerable rise over the next five years.

This merger also introduces Entain's Advanced Responsibility and Care (ARC) technology to the New Zealand market, a move aimed at enhancing the safety and responsibility of gambling practices. Entain's proactive approach to customer safety is evidenced by the effectiveness of ARC technology in managing gambling risks, with a significant percentage of high-risk customers maintaining or lowering their limits.

Regulatory Concerns and Industry Perspectives

While Entain's expansion marks a significant development in the industry, GMANZ's Peter Dengate Thrush continues to highlight the practical challenges posed by the new regulations. He points out issues like cash withdrawal duties and gaming area sweep duties, arguing that these requirements fail to connect with the realities of Class 4 venues and the frontline staff working in problem gambling reduction.

Thrush calls for a more nuanced approach to regulation, focusing on prosecuting non-compliant operators while ensuring that regulations are practical and effective. He emphasises the industry's collective goal of reducing harm and supporting responsible gambling practices.

A Dynamic and Evolving Landscape

The New Zealand gambling industry is currently navigating a complex landscape of regulatory challenges and market expansions. The judicial review sought by GMANZ against the DIA’s new regulations highlights the industry's concerns over practicality and efficacy in harm reduction.

Meanwhile, Entain's strategic acquisition of TAB NZ and its integration of advanced safety technologies represent a significant advancement in the industry, potentially reshaping the future of gambling in New Zealand. These developments collectively underscore the dynamic and evolving nature of the gambling sector in the region, reflecting both the challenges of regulatory compliance and the opportunities for growth and innovation.