UK-based sports betting and gambling giant Entain will invest $544.8 million in New Zealand’s horse racing industry over the next five years through the company’s new deal with the New Zealand TAB. The deal has been approved by New Zealand’s government and is set to commence on June 1.
New Zealand TAB is a government monopoly that oversees the country’s sports betting products on horse racing and greyhound racing. Entain will take over the TAB’s betting and broadcast operations for the next 25 years, according to the Sydney Morning Herald.
The 25-year arrangement will reportedly see Entain provide $9 million to New Zealand national sports organizations to be paid by 2025, and a $300,000 payment to Sport NZ to be invested into women’s sports in the country.
Entain recorded $5.2 billion in fiscal 2022 revenue, a 10% yearly increase over 2021. Betting brands owned by the company include British bookmakers Ladbrokes and Sportingbet, Austrian online betting firm Bwin, and the U.S. online sportsbook BetMGM, which Entain co-owns alongside MGM Resorts International.
DraftKings made a bid to acquire Entain for $22 billion in 2021 before pulling out of the deal due to complications tied to Entain’s stake in BetMGM.
The Sydney Morning Herald reports that Entain will provide an upfront payment to TAB New Zealand, plus annual payments over five years that will amount to $554.8 million (NZ$900 million.) The NZ TAB operates 675 betting shops nationwide, while Entain’s gambling brands are active in more than 20 countries.