BetFair Exits New Zealand Sports Betting Market
Betfair has announced that it would cease operations in New Zealand’s sports betting market on July 23, following the introduction of a new law that banned offshore sportsbooks in the country.
LISTEN TO THIS ARTICLE:Changes to the New Zealand Racing Act 2020 require all sports and racing bets to be placed through Tab NZ, which is currently being run by Entain. The amendments effectively block offshore sportsbooks like Betfair from operating in the market.
Offshore operators that continue to target the New Zealand market will face penalties from the Department of Internal Affairs and the New Zealand Gambling Commission.
In a release, Betfair said it has to withdraw from the country to comply with the amended legislation. However, the Flutter Entertainment subsidiary will continue to offer other products, including political and entertainment betting.
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New Zealand Gears for Online Gambling
While Tab NZ has exclusive rights now, the door may still open for other domestic operators to offer sports and racing betting. The NZ government plans to offer 15 online casino licenses to operators who meet strict criteria. This move aims to shift 80% of online casino activity on unregulated offshore sites to a safer, locally regulated market by 2026.
Operators will undergo a three-stage licensing process, including expressing interest, competing in an auction, and submitting detailed plans to the Department of Internal Affairs. Licenses will be valid for three years.
The government will also relax its gambling advertising restrictions for licensed operators. They will be permitted to advertise their services, but under strict guidelines.
The Department of Internal Affairs (DIA) will oversee the industry, and unlicensed operators could be fined as much as $3 million for violating regulations.
Last month, the DIA invited operators to express interest in obtaining a licence for the country's regulated iGaming market ahead of the licensing process. Major betting firms like SkyCity, Bet365, and 888 have reportedly come forward.
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