TAB selects Entain as preferred partner for outsourcing deal

[Tonkatime]

https://www.1news.co.nz/2023/03/27/tab-selects-entain-as-preferred-partner-for-outsourcing-deal/?fbclid=IwAR08rzfMSr--JmCjCzSRiac1w4-MlOQraE_0vQKmWEiu20j75SN2i0NnJXs

[Hesi]

https://www.tabnz.org/tab-nz-selects-entain-preferred-partner-25-year-strategic-arrangement-subject-ministerial-approval

[Hesi]

Includes an immediate uplift in payments to the codes

[Turny]

Same stable at Ladbrooks and NED in Australia.

Interesting times

[Hesi]

Alternative was them announcing in April, a 20 mil reduction in payout to the codes for 23/24, which would have been the beginning of the end for NZ racing.

Considering it was years of overspending at what was the Racing Board that led to this, it was good of them to give a 24 month hiatus to all TAB staff, which reads, you've got 24 months to find another job

[Hesi]

???

There was a piece on Entain at the finish of the media release, with a link to their website

[Turny]

Gogle them Max, have a great website ... they are huge around the world

[mardigras]

Needs to happen, but I don't see any change around the subsidisation of NZ racing, which frankly, pisses me off.

I'd also love to see the escape clause - i.e what happens if Entain decide they want out. Paying out NZ TAB staff for two years in an environment where you are trying to not make a large loss - they may realise there is little money to be made here.

Not to mention the issue that Ladbrokes are notorious for restricting customers.

[Turny]

1 minute ago, barryb said:

Neither of which can I have an account with. Both shit outfits.

Agre entirely Barry, they will quickly restrict success

[Hesi]

I think this is right

Entain own Ladbrokes and if the deal is signed off, the TAB

Ladbrokes won't own the TAB

Entain have a stable of several dozen wagering based companies, which they own.

Lots of detail to be exposed, but the TAB may still have a certain amount of autonomy over how they operate, but within broad guidelines set by Entain, not set by Ladbrokes

This was the view put forward by McAnulty, when approached by Guerin, that the NZ punter needed to be looked after

[slam dunk]

Maxi you make some good points. Trackside?? On Couse betting??? How are clubs going to interact whereby they put on races attracting betting and how are they going to be rewarded.

Its clear they have done little research which explains the attempt to muzzle any discussion. Its all fairytale stuff.

[Hesi]

I see the usual suspects picking holes in things

As I said, there are no other choices.  No deal means an announcement of a 15-20% reduction in the payout to codes in April, that soon, which would have started a stampede

A few plaudits also to Mike Tod, who has brought the TAB into today's world with so many customer focused promotions since he started, just 12 months ago.  Also, he has been the driving force behind something that Messara detailed 4.5 years ago.  He announced talks would be underway with Aus parties back in October, and less than 6 months later, there is a deal, only awaiting ratification from the Racing Minister.

That is warp speed, compared to what we have seen in the past from the TAB and the Racing Board.  There are those in the industry that will find something to criticise about him

I would suggest he is one, that won't have to be looking for a new job, if he wants to stay on.

I would say, that there are going to be a lot of changes though.

Ellis is just virtue signaling, looking after what he always looks after, himself and Te Akau

I note also, a few questioning where the money is coming from.  Both parties bankers and financial gurus have been over fully disclosed data from Entain and the TAB.  But I guess others know better

[Turny]

Given The Punter keeps the show alive what is in this for The Punter

I cant find anything mentioned.

Incredible, but at least the Titanic hasn't iceberged

[Hesi]

11 minutes ago, Turny said:

Given The Punter keeps the show alive what is in this for The Punter

I cant find anything mentioned.

Incredible, but at least the Titanic hasn't iceberged

• A commitment to provide a world-class and industry best practice wagering, retail and broadcast offering to Kiwi customers as well as racing and sports fans

[Hesi]

You will notice the mention of broadcast offering

[Hesi]

8 minutes ago, barryb said:

My worry as well Turny, this outfit hasn't shined a bright light in Aus & unless punters are guaranteed  $2k like now then its all bad news with this lot.

They may well put racing back in the spotlight as they will be keen to grow the database & advertise, modernise a few things as well.

Guerin addresses this on Weigh In at 50.51

[Turny]

Brodacst offering, give me a break we already have that.

So there is nothing then, at this stage

 

[Hesi]

We have no radio coverage and what many describe as poor TV coverage with Trackside.  I would suggest both are going to change

[Hesi]

Why would they not change, Entain are in the business of building wagering turnover

[Turny]

We have the upper level, potential sale.

Lower level silent, no detail yet.

Incompetence forced the sale so I aint applauding as the vendor will have little input, which may be a good thing given history.

My view, nothing will change but will give Entain a platform for an online casino to a captured market (see their website) ... that may be the attractor for them.

Interesting times ... dont hold your breath

[mardigras]

10 hours ago, Hesi said:

As I said, there are no other choices.  No deal means an announcement of a 15-20% reduction in the payout to codes in April, that soon, which would have started a stampede

Of course there is another choice - and it is probably the most apt one. Close down racing in NZ. Continue running a betting operator. Send the proceeds to the government as part of its revenue stream.

You put that out to the NZ public in a referendum with all the detail of how the industry is subsidised effectively by the taxpayer, I think the vote would be massively in its favour.

Edited March 27, 2023 by mardigras

[Hesi]

People say where is 200 mil a year going to come from

Well for a start 150 mil a year is already coming 

Look at the 22 Annual Report

354 mil revenue

200  costs(80 turnover realted or variable, 120  fixed of which staff is 41)

Return to racing/sport - 154 mil

Entain say they can return 200 mil , so an extra 50

They have done their homework and assessed they can reduce costs in addition to increasing revenue, to find the extra 50 mil, as well as making a profit for themselves.

Let's hope NZ racing in particular use it wisely to achieve sustainability.

[RJB]

2 hours ago, mardigras said:

Of course there is another choice - and it is probably the most apt one. Close down racing in NZ. Continue running a betting operator. Send the proceeds to the government as part of its revenue stream.

You put that out to the NZ public in a referendum with all the detail of how the industry is subsidised effectively by the taxpayer, I think the vote would be massively in its favour.

What a stupid comment shows no respect for the many thousands of hardworking people involved in the industry....who would be without a job if your stupid suggestion was given any traction, I personally think with the upfront payment, which seems not to be mentioned anywhere yet, that would have to pay for the exclusive rights and with the ongoing money to be tipped in it cant be anything but good for the industry as a whole. ..JMO.

[curious]

Hard to comment on this really until fuller details are released following ministerial approval.

That said, I find it hard to believe that will happen as early as next week as some apparently have suggested. He surely will need to consult with participants, at least with the codes and recognised industry bodies in the first instance as well as seek advice from the DIA and possibly Treasury at a minimum within government? Seems to me that's more likely to take months than days.

Edited March 28, 2023 by curious

[RJB]

7 minutes ago, barryb said:

The problem with your comment is you fail to see that for at least the last 10 yrs the industry has not been able to stand on its own 2 feet, it has been propped up by Govt.

The Wine industry, Fishing industry, Sheep & Beef, Dairy are not, why should racing be?. What other NZ industry is effectively given handouts to stay afloat & is artificially the size it is because of it?.

As Mardi says, if the general public knew they would overwhelmingly vote for it to stop immediately.

Sorry Barry,yes it may have been a shambles and run badly to get to where it is now, but lets hope and pray this is the light at the end of a very dark Tunnel...its our only small beacon of hope.