RITA or Racing Industry Transition Agency of New Zealand has successfully struck a deal with Sportsbet. Sportsbet will now live stream the racing actions of New Zealand in the bigger Australian market. RITA was established to oversee the overall development of the horse racing industry under the new governance structure.
Sportsbet is owned by Flutter Entertainment and will live stream the thoroughbred and harness racing along with greyhound racing. Tabcorp will act as intermediately for content delivery. Tabcorp is one of the long-term broadcast and wagering partner of TAB. Andy Kydd, TAB general manager for media and international told that this would act as a new revenue source for the TAB. He also added that Sportsbet is the largest corporate bookmaker in Australia and second to Tabcorp in the market among operators. He was very thankful to Tabcorp for sharing the content to Sportsbet despite being the biggest competitor.
This deal came after a breakthrough deal that took place between RIITA and Flutter Entertainment owned Betfair earlier this year. Betfair agreed to pay product fees to the TAB for offering odds in the racing. TAB has decided to revitalize the racing industry and similar negotiations are still being carried out especially in the Australian market by TAB.
In April this year, the New Zealand government decided to arrest the decline of the racing industry. The existing horseracing levy would be phased out in three years. The levy generated mere NZ$13.9m in 2018. This was only 4% of overall betting profits in the country. The entire profit would be reinvested in the industry for further growth. The country has categorically ruled out the chance of licensing model for operators. Consumption Tax imposition on offshore operators taking bets could be possible under this new change. In the view of all governance change, New Zealand Racing Board was replaced by RITA.
This may bring new legal products in New Zealand and can even license a few of the verticals. A new form of online gambling has been launched this year. New Zealand has not changed gambling legalization since 2003. However, with the change of technology and increasing offshore online gambling availability, the government may take some steps towards it.
Currently, Lotto NZ and TAB are permitted for online gambling products. However, the government may look to safeguard the people from the negative impact of gambling as it slowly creeps into society.