uy claimed that overseas betting activity is depriving the local racing industry in the country of income by sidestepping the TAB’s domestic monopoly and results in lower Government tax revenue.
The Racing Minister said the TAB had a monopoly on racing and sports betting under a regime that required the Racing Board to distribute profits back into the professional racing sector, but this was being undercut through the use of online betting with overseas operators.
“This means offshore organizations make money on New Zealand racing and sports without paying their fair share of tax, or making contributions back to the racing industry or sporting organisations that make the betting possible in the first place,” Guy said in a statement.
In response a review, overseen by a working group chaired by former National MP Chris Tremain, will consider the impact that this system is having on the country.
The review will also consider how overseas operators are not subject to the same responsible gambling regulations as the TAB, which could in turn lead to issues with problem and underage gambling.
“The issue will continue to grow and needs to be addressed now,” Guy added.