Racing Industry Amendment Bill

I present a legislative statement on the Racing Industry Amendment Bill.

ASSISTANT SPEAKER (Teanau Tuiono): That legislative statement is published under the authority of the House and can be found on the Parliament website.

Rt Hon WINSTON PETERS: I move, That the Racing Industry Amendment Bill be now read a first time. I nominate the Governance and Administration Committee to consider the bill.

In this environment of cooperation, let’s press on and get as much as can be done as fast as we can, bearing in mind that the industry that I inherited is what I’m trying to fix up. I’m not making any complaint about it, but this is what I did. We had Entain there, which I inherited, and you’ve got to make the most of it now.

This Government moves that the committee consider the bill for a period of 19 weeks and report it back to the House on 30 April 2025, and that the committee have the authority to meet at any time while the House is sitting, except during oral questions, during any evening on a day on which there has been a sitting of the House, and on a Friday in a week in which there has been a sitting of the House, despite Standing Orders 193 and 196(1)(b) and (c).

This Government is pleased to introduce an amendment to the Racing Industry Act 2020 that will protect the long-term financial sustainability of New Zealand’s racing industry. The Act established TAB New Zealand and sets out legislative purposes, including to provide funding to the racing industry on which its products depend. As part of this revenue purpose, the Act sets out TAB NZ as the only authorised land-based sports and race betting operator, and today TAB NZ continues to provide over 90 percent of the three racing codes’ revenue—now two racing codes, very shortly after 1 October 2026. The Act also provides for revenue gathering from international providers of wagering who offer odds to New Zealand punters and on New Zealand events. These offshore charges were designed to offset the revenue lost to betting operators who do not otherwise pay profits to the sporting and the racing industries of New Zealand.

The scale of offshore operations has grown since the last time I held the racing portfolio and brought the Racing Industry Act to this House. Despite entering into a partnership with a global betting operator as part of the efforts to develop a competitive edge, the tide of money from New Zealand punters has steadily turned. Offshore operators are consolidating a significant market share of New Zealand betting, and the revenue which New Zealand’s racing industry relies on is certainly not guaranteed. This Government is introducing legislation today that will stem that tide. Once enforced, it will prohibit any operator other than TAB NZ from offering sports and race betting to a person in New Zealand. In effect, this Government is extending the existing sole authority of TAB NZ to include online wagering.

This Government is not just betting on the success of the racing industry; this Government is in the pole position and creating the odds for success. To use racing phraseology. “Success for who?”, you might ask. As this Minister says, it’s for all who are willing to place a bet. While this bill seeks to persuade the tides, it does, effectively, reduce the market to one sports and race betting operator, and this Government knows that Kiwi punters want a desirable Kiwi-run option that puts New Zealand and its economy first. The bill introduces regulation-making powers that will allow us to set the conditions on which TAB New Zealand may exclude or limit Kiwi punters, ensuring that New Zealand’s eager punters have a reliable and trustworthy operator to stake their bets with.

This bill secures more than one good success—a real daily double, one might even say. TAB NZ—I get it; somebody who’s got a sense of humour wrote this. TAB NZ’s agreement with Entain includes a one-time payment of $100 million if TAB New Zealand’s monopoly is expanded to online wagering in New Zealand. This bill secures that payment for TAB NZ and, by extension, the racing industry. This prohibition is a very good thing for the racing industry and for New Zealand.

The Act provides for revenue recovery from bets placed by people in New Zealand with providers other than TAB NZ. This point of consumption charge is known as the “POCC”. However, as this Government is amending the bill to prohibit such operators from participating in New Zealand’s market, this change will no longer be necessary. Therefore, the bill removes the POCC from the legislation after 24 months. This period is to ensure that the POCC can still be recovered in the period following enactment while operators still have bets pending on future events. This Minister for Racing has been around the track enough times—

Tangi Utikere: “False Start”.

Rt Hon WINSTON PETERS: Well, actually, that was a racehorse’s name, but way back in the 1950s. The other one I’m talking about is Rising Fast—he won the Melbourne Cup, Rising Fast did. But back to the point.

The Minister for Racing has been around the track a few times, and increasing the market dominance of TAB NZ is a bold expansion of their prerogative on wagering in New Zealand. This Government’s bill seeks to oversee that expansion with the appropriate rigour. This bill introduces powers for the Minister for Racing to request information from TAB NZ at any time. This is a broad power but a necessary one for oversight of a statutory entity for whom the Government is granting a great deal of fortune in the competitive market. These are sensible changes.

Also to that end, this bill will appoint a regulator to monitor compliance, with the new prohibition in addition to the reporting done by TAB NZ to the Minister for Racing. Compliance with both rules is set to be a top priority. The civility of the racing industry depends on it, and this legislation codifies that expectation.

Mr Speaker, thank you, I commend this bill to the House. I just suggest to my parliamentary colleagues from across the House that this is not party political, so to speak. We have to, if we’re going to turn our economy around, go to industry after industry after industry and do so much better. This is one where we can do a whole lot better, as evidenced from the fact that we recently were in Malaysia and decided we’d have an afternoon where we could go out and see a famous racecourse there getting under way. The consequences of that visit was that they came to the Ready to Run races at the end of this year at Karaka and must have bought about 35 horses, and they’re coming back—those same Malaysians—at the yearling sales at the beginning of next year, at the end of January. It’s by doing that in so many industries that we’re going to lift this country’s performance. As I said, it’s hardly political; it’s just plain common sense. Let’s make sure this horse can run.

The question is that the motion be agreed to.

Kia orana, Mr Speaker. Well, racing as a portfolio is certainly getting some exposure in the House today. As the racing spokesperson for Labour, I can indicate to the Minister that we will be supporting this bill through to select committee, although it’s disappointing that the Minister didn’t get to introduce this bill sooner. If he had, then the much-needed revenue that flows from this would have been in the pockets of industry participants much sooner than is the case, which would mean that the revenue could be reinvested here in New Zealand much sooner.

What this bill does is it creates what we refer to as a “legislative net”. It, basically, provides an opportunity to ensure that the revenue that has wagered on an online basis, overseas and the like, is, basically, retained or captured here in New Zealand. What does that mean? Well, it means that the money does not go offshore; it’s retained here domestically and can be reinvested into the industry. If the Government had made that decision much sooner, following up from the work that was initiated under the Labour Government, that revenue would have flown in the form of investment and reinvestment into industry participants much sooner than is the case.

We’re talking about an industry here—I know the Minister knows this, and I know he knows it well—that, basically, is around 14,000 full-time jobs here. If we take into consideration the number of volunteers and other participants, that sort of skyrockets beyond 40,000. We’re talking about a significant amount of individuals who are associated within the racing industry here in Aotearoa New Zealand that generates close to $1.9 billion in value-added contribution to our economy. We’re not talking about any small sense of coin in that regard.

Many of us will have spent time visiting race courses not just in our electorate but beyond that. As we head into summer, there will be a number of racing opportunities where rural communities really rely on participation and involvement to help with community spirit. If we all reflect on opportunities that exist, that’s just a wonderful opportunity that is there.

We’re also known globally as a world leader when it comes to breeding—our thoroughbreds. I know the Minister in jest talks about particular runners in the Melbourne Cup and the like, but we are well known around the world for our sense of breeding and also in terms of the equine component—the particular approach that we have in that space, as well.

The issue with this bill being delayed in terms of its introduction means that the additional turnover, which may be around about $180 million extra that could be circulated into the industry, is going to be further delayed. The $100 million payment that will come as a result of the Entain arrangement, which is a 25-year arrangement working with TAB New Zealand, also could have been received much sooner. It is disappointing that that is not the case.

One of the real benefits of this bill is the focus on harm prevention and harm minimisation. That is something that is happening all around the world. Earlier in the year, I was able to visit Kempton Park, where they were talking about, as part of their race day approach, the various approaches to harm minimisation and what that means. The problem that we have at the moment, of course, is that the TAB is only a land venue monopoliser. What this will do is it will, basically, extend that to an online offering—or oversight on an online sense. It is a good move. I know that there will be a number of issues that we will still look forward to teasing out as part of the select committee process. We look forward to that.

This is actually identified in the departmental disclosure statement—removing that point of consumption charge that the Minister talks about. That really is no longer a viable charge if the TAB is going to be the monopoly of it. The point of the consumption charge is to, basically, be able to clip the ticket and gather some revenue on any operators that are offshore, so that the domestic market is able to fare its sort of share as part of that. I did question why there is a 24-month delay. I understand it’s because there still needs to be an opportunity to capture that charge for future betting—stuff that happens into the future, into 24 months.

Look, we look forward to progressing this through the select committee, where we will tease out a few of the things that we would like to. On this basis, at the moment, we commend the bill to the House.

This legislation will support New Zealand’s racing industry by making TAB New Zealand New Zealand’s sole provider for sports and racing betting, both on land and online. It thereby ensures gambling profits are returned to the domestic racing industry.

The bill makes several other changes, including new oversight powers for the Minister to seek information from TAB New Zealand; the regulatory oversight and the prohibition on other operators; and extends regulation-making power for harm prevention and minimisation. As my colleague Tangi Utikere has just mentioned, that is something of significant importance. It will extend those regulation-making powers for harm prevention and minimisation to online TAB platforms, and it will create regulation-making powers to specify circumstances in which the TAB exclude customers from using their online platforms and other consumer protections. The net profits of the TAB are distributed to the racing industry and, through grants, to sporting organisations, so minimising competition protects gambling revenue for the domestic racing industry.

The Green Party has a policy specifically that says we wish to prevent new forms of gambling—they’re associated with harm—and regulate all existing forms of gambling to minimise harm. This bill does prohibit online betting services by offshore operators, and online gambling is one of the risker forms of gambling due to its easy access and easiness to conceal, for those who do have issues with problem gambling. Offshore operators are also not covered by New Zealand law and the protections provided by our regulation. We previously supported legislation in 2019 to introduce offshore betting changes with revenue distribution among the racing codes, which we determined was sensible given that the current racing industry provides a service to offshore vendors for no compensation. The same justification applies to prohibiting offshore betting.

The primary point of the bill is to protect the financial sustainability of the racing industry. There is some question over whether that sustainability is a good thing—for those who are concerned with issues of animal welfare, animals used for entertainment, and across racing codes. We cannot but acknowledge the very important decision that has just been passed this afternoon to protect greyhounds from racing harm, in the prohibition of that industry. Our party policy, however, seeks to regulate racing and does not explicitly call for its abolition—in terms of horse racing, obviously, and other forms of racing. The primary point of the bill is to protect the financial sustainability. There is the risk that protecting TAB’s monopoly in limiting competition will increase TAB profitability at the expense of betting consumers. However, we do not want the industry to grow and expand in a way that is potentially harmful for consumers.

In that regard, we will be supporting this bill to the select committee. We will be seeking opportunities to make further potential amendments once we understand and review how best this bill can accommodate our objective of reducing the harm and improving community outcomes in regard to gambling. Thank you, Mr Speaker.

Thank you, Mr Speaker, and thank you to the House for the opportunity to speak to the Racing Industry Amendment Bill. Suffice to say, this is a good piece of legislation. We did grapple with some of the thoughts and discussion about how it would bleed into creating the right profit streams for the industry. We were a bit unsure about where the bill would land in its future but, equally so, I think it’s incumbent upon us to allow it to go to select committee.

We’re interested to hear, obviously, what the industry thinks about its own future, and we are, evidently, somewhat concerned about the creation of a monopoly in the private sector. That I say all that, this bill is an amendment to the 2020 Racing Industry Act and creates the right environment for long-term financial sustainability for New Zealand’s racing industry.

There’s a couple of key points I just want to canvass with the House if I can. Obviously, this is an extension to the monopoly and extends TAB New Zealand’s existing land-based monopoly to include online sports and racing betting reality. I think we’ve ever heard today a couple of salient points. Obviously, that speaks to the investment that the industry can reinvest in harm minimisation and issues to do with gambling addiction. That was notable and I think you can’t canvass that point enough, as was raised by Steve Abel.

The economic impact: the racing industry generates significant economic benefits to New Zealand. I think that was well canvassed: 13,000 to 14,000 people and I think the wider number for the industry at large by extension to those associated with the industry was near on 40,000, and worth a couple of billion dollars. Suffice to say, I think that can only be a good thing.

The strategic partnership: the bill supports TAB’s new strategic partnership with Entain, which is expected to deliver substantial financial benefits to the racing industry.

I don’t want to over-litigate the point. We are a little bit concerned about the potential monopolisation of the industry and there will be some unintended consequences, I think, that the select committee will have to grapple with: economic impact to offshore operators, regulatory challenges, consumer choice—where will that sort of bleed into.

Overall, without overplaying my hand, we look forward to the findings from the select committee process and how they litigate the positives and the negatives of this legislation. Suffice to say, in the art of collegiality, we will be supporting it through this first reading, allowing that natural process of select committee scrutiny to go ahead. Thank you.

It gives me great pleasure to rise for the Racing Industry Amendment Bill first reading, and we look forward to it working its way through select committee and hearing the submissions on it. A great day for greyhounds and a great day for the New Zealand’s thoroughbred racing industry here and its long-term sustainability. This legislation, as has been canvassed, will enhance that sustainability by making TAB New Zealand New Zealand’s sole provider for sports and race betting, both on land and online. I commend this bill.

Kia ora, Mr Speaker. We take these things seriously, and this is one of those bills that we welcome, as introduced by the Minister, as a look towards the current and the future state of the way that people bet—in particular with respect to horses, but, of course, other sports betting online.

We acknowledge the partnership that’s been entered into and, in particular, the goodwill monies, if you will, that has been given towards the sector and, broadly speaking, sport—which is why it’s one of those opportunities where we’ve got a chance now to look towards how we might support right across the board and not just the specific part of online gambling. The reason I say that is because while that’s important in this particular bill, we know that online gambling—whether it’s pokies or—is already in our communities. I acknowledge the attempts at trying to minimise gambling harm in this country, and communities have taken steps towards doing that. For example, pokies in places like South Auckland; stopping the proliferation of those kinds of forms of gambling are important. But, of course, all that has done with new technology is shift gambling online.

With respect to this particular bill, it’s good for sports betting—in particular, horse racing. The Minister has spoken to that and we will be supporting it, but I want to caution the House here and say there are other things that we need to look at with respect to online gambling to make sure that what we’re doing here is something that we can cast a lens across online gambling in other spaces that our communities are already engaged in.

I’ve noticed recently, for example, there are online influencers who promote online gambling to their communities, and that’s a serious issue that we’re yet to confront, but what we are doing with this bill is making sure that, “OK, we can allow this sort of thing, but we’ve got to have an eye on the ball”—or an eye on the horse, as it would be. We’ve got to make sure that it doesn’t get away on us. We’ve got to make sure that there are regulations here that will allow us to make sure that we don’t see the horse getting away on us, if you will. That’s why we support this bill.

We will interrogate a number of the matters as it goes through the select committee to make sure that the deal—and that was engaged in by TAB and Entain—was one that benefits the sector correctly and also doesn’t, as members across the House have already mentioned, the way you create monopolies in these kinds of sectors. It’s always something we’ve got to be aware of and make sure that we aren’t, by dint or doing something good here, simply creating monopolies for the sake of creating monopolies. We’ve got to be very clear about why we’re doing it.

I acknowledge the comments by the ACT Party member Mark Cameron, because this is where the select committee is going to be really important as we scrutinise this particular bill as it goes through, but from what we can see—and the fact that the sector is already changed and has changed in the short number of years where online gambling and online betting has been in our communities—one might argue that this has been a long time coming and it’s been a little bit slow with respect to its introduction into the House. Having said that, we support it. We’ll make sure we interrogate it through its processes. I take the Minister’s word that we will be going through the full committee stage process, which I think is a good thing and welcome for such an important thing—an important bill—in our communities.

Finally, I want to acknowledge just the work that’s been done on racing. Why I say that is, of course, COVID impacted communities and sectors right across the country—in particular, horse racing, and racing and sports in general. We know that COVID had a significant impact on it. What it did do, however, is it gave the industry the opportunity to push the reset button, to say, “OK, what do we look like in a post-COVID world?”—

Hon David Seymour: Opportunity.

Hon PEENI HENARE: —it’s an opportunity—“How might we be able to modernise ourselves? How might we be able to continue to reach our existing markets while looking towards other opportunities in this space?” An acknowledgment to the industry, because it hasn’t been easy; it has been a difficult time, and if there’s one thing certain—it’s not to do with betting—it is that technology will continue to change the way we operate. Let’s just remind ourselves as regulators and lawmakers that we must remain nimble on the matter as well.

I want to support this bill. I think that establishing the Department of Internal Affairs as the sole regulator for sports gambling in New Zealand is a positive step. I also think closing that loophole that’s been exploited by overseas operators, so that the revenue stays in New Zealand, not just providing additional revenue for racing but for other sporting codes as well—that’s got to be a positive thing for New Zealand. I commend this bill to the House.

Thank you very much, Mr Speaker. Like my colleague Tim Costley, I’ll keep it short and sweet. Let’s be clear, this bill aims to counteract the growing influence of offshore betting operators and ensure continued funding for the racing industry in New Zealand, ultimately keeping money raised through the TAB here in New Zealand. It’s a good change; it’s a smart change. As a member of the Governance and Administration Committee, I’m looking forward to being a part of the consultation and listening to the submissions we receive. I commend this bill to the House.

Mr Speaker, thank you for the opportunity to take a call on this bill, the Racing Industry Amendment Bill. As you’ve heard from my colleagues, it’s an important step but it’s also important that we fully understand that the Government’s proposal here is to be able to interrogate this bill through a select committee process. I understand that the Minister, when giving instructions to select committee, will be giving a full allocation of time to the select committee to move through that process, and that is a good thing. For the Governance and Administration Committee to be able to really drill down into what the industry needs and some sensible reforms there, it’s going to be important that all parties represented in the Parliament are able to make their views clear.

I’ve heard, for instance, from the Green Party today that their party policy is not to restrict all racing but that they would see a significant downsizing of the industry. I’ve heard from my colleagues here that the industry is important to the regions, particularly some of the regions represented by the members who have spoken today, like Tangi Utikere. This is something that deserves proper consideration. It’s very useful that we are not rushing this through. Without needing to prolong the debate here, I thank the Minister for his interest and his work on this. I thank him for the opportunity for my good colleague Tangi Utikere to be able to speak in his racing portfolio. It’s a real enthusiasm of his, as it is for many of the Labour members who have held that portfolio, and I commend this bill.

Thank you. The TAB is the backbone of New Zealand’s racing industry, and the racing industry itself is a significant contributor to our economy. A day at the races is a cultural institution in rural and provincial New Zealand. I want to take this opportunity to pay tribute to Kevin, Angela, Jason, Luke, and Caley Myers of KT Racing in Turakina, in the mighty Rangitīkei, who run a fantastic racing enterprise. Thank you. I commend this bill to the House.

Motion agreed to.

Bill read a first time.

The question is, That the Racing Industry Amendment Bill be considered by the Governance and Administration Committee.

Motion agreed to.

Bill referred to the Governance and Administration Committee.

Instruction to Governance and Administration Committee