Entain get a monopoly

[pete]

So so wrong...

https://www.stuff.co.nz/business/132106337/britains-entain-gets-green-light-to-take-over-tabs-betting-operations

[RaceChat]

What could possibly go wrong

[pete]

17 minutes ago, RaceChat said:

What could possibly go wrong

What could possibly go right?

[pete]

Love this line from the Herald:

The sports codes are big winners as they have paid nothing toward the setting up of the TAB but will receive $15 million over three years based on their sports percentage of the TAB turnover.

[pete]

Better article from mighty Mick here.

https://www.nzherald.co.nz/sport/betting-agency-entain-to-take-over-running-of-tab-operations/MX2JARKNB5AR7DU65NS7X45MSM/

All happens on June 1!!

[Hesi]

While we don't know the details of the other 2 proposals, TAB NZ, had no choice.  Announcing a 20% reduction in payout to the codes for 23/24, to balance the books, would have seen the industry go into freefall.

TAB NZ/Racing Board have sat on their hands for 4 years over this, since Messara in Aug 2018, until it became a pressing issue.  Probably why the haste now.

$100 mil upfront sweetener for racing in NZ, part of which is to be held by TAB NZ as future proofing, 50/50 revenue share with $150mil per year min guaranteed for 5 years, possibly another sweetener if geo blocking goes ahead, 5 mil harm minimisation

I note also a dire warning from McAnulty on greyhounds as far as animal welfare is concerned, continue under strict provisions or close

[Turny]

Dishlickers will be finished at some point not too far away, probably less than 2 years imho.

The public perception of Greyhounds is not good, combined with GRA history, mostly recent, of being less than transparent in their dealings with the governing authority, parliament.

Imho Dishlickers are toast. I have no personal viewpoint on it, none whatsoever

Edited May 23 by Turny

[slam dunk]

4 hours ago, pete said:

Better article from mighty Mick here.

https://www.nzherald.co.nz/sport/betting-agency-entain-to-take-over-running-of-tab-operations/MX2JARKNB5AR7DU65NS7X45MSM/

All happens on June 1!!

Irresponsible publishing. Guerin's article should have been prefaced with the disclosure he is a TAB employee.

[Hesi]

3 hours ago, Hesi said:

While we don't know the details of the other 2 proposals, TAB NZ, had no choice.  Announcing a 20% reduction in payout to the codes for 23/24, to balance the books, would have seen the industry go into freefall.

TAB NZ/Racing Board have sat on their hands for 4 years over this, since Messara in Aug 2018, until it became a pressing issue.  Probably why the haste now.

$100 mil upfront sweetener for racing in NZ, part of which is to be held by TAB NZ as future proofing, 50/50 revenue share with $150mil per year min guaranteed for 5 years, possibly another sweetener if geo blocking goes ahead, 5 mil harm minimisation

I note also a dire warning from McAnulty on greyhounds as far as animal welfare is concerned, continue under strict provisions or close

Instead announcing this

Supported by this new partnering deal, the TAB NZ Board has guaranteed an immediate and significant uplift in distributions to the Racing Codes for the next five years, to the following minimum levels:

• $170m for 2023/24 (+36% compared to current financial year)
• $175m for 2024/25 (+40%)
• $180m for 2025/26 (+44%)
• $185m for 2026/27 (+48%)
• $200m for 2027/28 (+60%)

[Globederby19]

 The old adage."If it sounds too good to be true , then it probably is", comes to mind. 

[Hesi]

I note, stake increases for 23/24 and 'initiatives' for thoroughbred are due to be announced by NZTR on June 15.

Let's hope there is some detail about how money will be used to improve infrastructure, most notably tracks.

You would also expect to see future announcements now on the Waikato Greenfields project and what Avondale plan to do, as they are becoming an increasingly irrelevant part of NZ racing

 

[Hesi]

14 hours ago, Globederby19 said:

 The old adage."If it sounds too good to be true , then it probably is", comes to mind. 

Rees, you are starting to sound like those old lags on other channels lol

Just what is it people don't understand.  Regardless of the whys, the existing regime was not working, and without a deal, would have seen an announcement that stakes for 23/24 would be cut by 20%.  That would have really given the know all's something to bitch about.

 

[Globederby19]

1 hour ago, Hesi said:

Rees, you are starting to sound like those old lags on other channels lol

Fair point. I like the "old " moniker though. Apparently it's a 25 yr deal, so in the long run it won't affect me, lol. I am going to try and get a response from my son in law to see how or if , it will have a long term effect on the business of buying and selling horses here and overseas. 

[Maximus]

The phrase about "too good to be true" was rattlin' through Maxi's overside brain as well. You don't have to dig too deep or for too long to see Entain have an appalling record overseas in some areas, notably huge fines - millions and millions of pounds - related to Problem Gambling.

MM

 

[vanturk]

46 minutes ago, Maximus said:

The phrase about "too good to be true" was rattlin' through Maxi's overside brain as well. You don't have to dig too deep or for too long to see Entain have an appalling record overseas in some areas, notably huge fines - millions and millions of pounds - related to Problem Gambling.

MM

 

Yes maxi, but this govt have done a fair bit  to dampen peoples  spirits,  and racing  is never going to  be in the spotlight for them so they really had no choice? What's the alternative?  

[Maximus]

 

Fact is, TAB were negotiating from a position of total weakness (having spent nearly all the money, including the Govt's cash injection) - so there was no short-term alternative other than having to go cap in hand to the Govt again (and getting a different answer than last time).
So Entain will call the shots cos they've got the cash/access to capital and are willingto commit 25yrs into the NZ industry. Geoblocking will allow them to frame markets with poorer returns (odds) for punters. ..and that's the main reason, I'd suggest why they're prepared to invest here. For them, it's a licensce to print money. For our wider industry, it's a saviour. For the punters, it's a rort.

Like it or lump it, Maxi's dear departed Mum would say. 

Entain's track record?

... Entain was fined £17 million (NZ$34m) by the UK Gambling Commission last year for what the commission described as “completely unacceptable anti-money laundering and safer-gambling failures”.

It also noted that it had been fined for two rule breaches in Australia that saw it encourage heavy gamblers to start betting with its Ladbrokes business by offering them incentives to open betting accounts, in one case setting up an account for a gambler without their knowledge or permission.

[Maximus]

24 minutes ago, vanturk said:

Yes maxi, but this govt have done a fair bit  to dampen peoples  spirits,  and racing  is never going to  be in the spotlight for them so they really had no choice? What's the alternative?  

This Government actually bailed out the industry when they were about to default on their loans. The appalling state of the industry has come about from at least 20 years of appalling mismanagement of assets, products and services. No better example than the astonishingly dumb deal on creation and servicing of the new betting platform... $40-50M was it? Not to mention outrageous overpayments to under-performing CEOs and others.

MM

[barryb]

On 5/24/2023 at 9:58 AM, Hesi said:

Rees, you are starting to sound like those old lags on other channels lol

Just what is it people don't understand.  Regardless of the whys, the existing regime was not working, and without a deal, would have seen an announcement that stakes for 23/24 would be cut by 20%.  That would have really given the know all's something to bitch about.

 

Agreed, I am staggered at those who think we could have just continued along the same path, Racing in NZ was 2yrs from being dead if this deal wasn't struck.

The picture is gloomy enough, this is the last chance lifeline for Racing. We can all see that the Greys are history before Xmas & probably rightly so based on the average track record they have.

[Hesi]

But it just doesn't feel right to some people lol

[vanturk]

And look what happened  today at hastings?

[vanturk]

3 hours ago, Maximus said:

This Government actually bailed out the industry when they were about to default on their loans. The appalling state of the industry has come about from at least 20 years of appalling mismanagement of assets, products and services. No better example than the astonishingly dumb deal on creation and servicing of the new betting platform... $40-50M was it? Not to mention outrageous overpayments to under-performing CEOs and others.

MM

Doubt it was this govt, more winnie .the new platform  was under Allen though wasn't it?

[Hesi]

No it was Grant Robertson, the then Minister of Racing and also the Finance Minister, who handled the last bail out

[Maximus]

9 minutes ago, vanturk said:

Doubt it was this govt, more winnie .the new platform  was under Allen though wasn't it?

Indeed twas Winston who secured the $72.5m bailout announced in May 2020 as part of aLabour-led Gummit that has steadily flocked this country's economy over.

MM

[Hesi]

Hastings was one of the courses highlighted by Messara 4 3/4 years ago, for a complete course rennovation

[Maximus]

3 minutes ago, Hesi said:

No it was Grant Robertson, the then Minister of Racing and also the Finance Minister, who handled the last bail out

TAB just months away from collapse before Government bailout | Stuff.co.nz

In May, Peters announced a $72.5m package for the racing agency, with $50m going directly to RITA. $20m went to build two new all-weather race tracks and $2.5m for the Department of Internal Affairs to look at ways of addressing the sustainability of gambling revenue as more Kiwis used online platforms to gamble offshore.