Photo: Trish Dunell
The TAB’s partnership with Entain
The recent announcement that the TAB has entered a 25-year partnership with Entain means that it is an incredibly exciting time for the New Zealand Thoroughbred Industry.
Whether retaining to race or taking advantage of the increased demand in the sales ring, given the significant increase in stakes money along with several other key priorities that will be focused on, breeding a thoroughbred on the rich pastures of New Zealand has never been so attractive!
There’s been a few announcements in the last few months and a detailed version can be found here, however we thought we would round up the news so far in a short hand version.
Why did Entain come on board?
As the sole holder of the betting license in New Zealand, the TAB is responsible for boosting the fortunes of racing and sport.
The TAB for some time had faced increasing competition, rising costs, capital constraints and various other challenges, which impacted its ability to deliver adequate funding to racing and sports. These challenges were expected to increase.
The TAB board decided that to achieve its objectives and growth ambitions for itself and the industry, it was in the best interest to explore a partnering arrangement with an international wagering operator to deliver the TAB’s wagering and broadcast functions.
The TAB considered a number of companies, with three being shortlisted. After a series of independent due diligence Entain was selected.
What is Entain?
Headquartered in the UK, Entain PLC is a FTSE100 company and is one of the world’s largest sports- betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands including BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet, Sports Interaction and SuperSport as well as several gaming brands.
What does it mean for the thoroughbred industry?
The Nuts and Bolts
In return for taking over wagering and broadcast functions, Entain will deliver funds back to the TAB who will distribute these to the codes. The distribution to the thoroughbred code will be handled by the industry body New Zealand Thoroughbred Racing (NZTR).
For the first five years:
· There will be a minimum guaranteed payment of $820 million to the codes spread over 5 years.
o The payment is $150 million in the first year of which approximately 58% of this will be given to NZTR ($87 million)
· There will be an upfront payment to the TAB of $150 million, of which $90 million will be distributed to the codes over five-year period.
o NZTR’s share of the upfront payment is approximately 58%, equating to $52 million over five years with $11.2million in the first year.
Prizemoney in 2023/24
· The headline number is an impressive $29 million stakes increase, from $70.5 million in 2022/23 to $90.8 million in 2023/24 – a 29% rise!
· The increase is spread from top to bottom, giving a horse competing at any level a significant boost to their earning potential.
· Detailed information can be found here, for example at the top a Group 1 is now worth a minimum of $400,000 up from $300,000, right down to a maiden at an off-peak industry meeting rising to $17,000 from $14,000.
· There are some innovation races to be introduced:
o A $1million Open 4yo race on Karaka Million Night
o 4 x new races at Riccarton, Trentham, Ellerslie and Te Rapa – each worth $350,000
o A $200,000 Southern Mile
o 3 x All Weather Races each worth $100,000
· In addition, the 3yo Karaka Million race will increase in stake by half a million dollars to $1.5million!
Other Focus Areas
Aside from the tremendous boost to stakes money, improvements to the overall racing product and professionalism within it are key factors in this deal.
NZTR have commented in their report: “We are committed and resolute to the fact that from this point forward, each and every one of us need to adopt a mentality of improved professionalism and standards across every part of the industry.”
Priority areas have been identified to achieve this:
· Industry Training and Enhancing the Welfare of People and Horses – the Thoroughbred Welfare Levy will see a boost with 1% of all stakes money to be put into it. This will help to enhance the hugely important area of equine welfare. Likewise, when it comes to the people involved in the industry there will be a focus put on both education and welfare.
· Enhancing Track Performance – Increased funding and windows of time for annual renovation work to be set in place as well as training and framework for track managers.
· Accountability for Performance amongst Clubs – Funding will be targeted to the areas of racing clubs that require it and clubs will be held accountable for providing first class venues.
· Achieving Sustainable Growth – There will be a focus on speeding up the process of rationalising venues, developing a strong partnership with Entain regarding wagering and looking at ways to innovate to create further income streams.
· Enhancing Public Relations – developing a public relations strategy to improve the perception of the industry to the wider public. Areas concerned with media relations, promotion of raceday events, promotion of ownership and public education will be targeted in order to do this.
The arrival of Entain signals an incredibly exciting new chapter in the New Zealand Racing scene. The increase in stakes money along with a focus on key areas all point towards a more successful and professional industry.
Without the breeding of horses nothing would be possible, and we hope that everyone can see that there is no better time to be sending mares to stud!
NB: This piece was written prior to the announcement of the revamped Entain-NZB Insurance Pearl Series bonus.
