Entain

[Hesi]

Can someone explain what this means in the NZTR Strategic Funding document.  The 'legislative net' refers to geo blocking

That whole document is worth a good read as it explains a lot of things to do with funding and Entain's future past 5 years and 25 years.

1) What is NZTR’s share of the MinimumGuarantee (MG) payment from Entain?

Entain’s MG commitment applies for the first five years of the agreement and starts at $150m per annum, rising each year thereafter (NB – if a ‘legislative net’ is implemented this would see an additional $15m added to the MG per annum from 2024/25). NZTR expects to receive approximately 58% of the MG in the 2023/24 season, which is approximately $87m. NZTR’s percentage share is not “fixed” – this is subject to the Code Funding Agreement and is dependent on NZ Thoroughbred racing performance over future seasons.

[mardigras]

A lot of fluff - and I didn't see one piece detailing how much will actually be spent on improving tracks and management of tracks. A lot of detail on stakemoney distribution which has zero impact on punting revenue, but nothing on how much to address the problems with what is being offered.

Also, not one area where there is an actual requirement for betting to increase or attraction to NZ Racing to increase. The entire funding model is based on Entain delivering the minimum guaranteed and then the revenue share later. Neither the minimum guaranteed amount or the future revenue share have any relationship with revenues obtained via NZ Racing, they only relate to the % of the minimum payout that NZTR would get.

Under the agreement, NZ Racing could attract minimal turnover, and the NZ Racing industry would still be paid out based on the agreement. And each code would get its share based on whatever method they are applying.

This statement.

These priorities identified by NZTR will continue to relentlessly improve the presentation and preparation of all facets of our industry which is paramount to improving wagering growth and will be maintained in key areas

has no impact on the revenue received by NZ Racing. It's fluff as there isn't any accountability around what constitutes success or failure. Since whatever they do, they will get the revenue based on the agreement and that agreement relates to the entire revenue model of Entain, and not related to the revenue model of NZ Racing's share of that revenue.

I believe it is written that way to further cloud the public's view of where exactly the revenue is earned from. This is implying that the revenue generated by NZ Racing is paramount to increasing the overall funding. When that is not the case and hasn't been for 20 years. It can only assist in increasing the share of revenue NZTR gets, of all the funding paid out to the NZ Racing industry.

As for the legislative net, one would like to believe that if this was implemented, Entain would have no power to restrict customers betting volumes etc. Since this is removing their opportunity to conduct their business elsewhere. 

This is the biggest load of bollocks I have seen yet.

Regulating this environment through the introduction of a “legislative net” offers a significant new revenue source for local racing (and sport), while also addressing the inherent and serious risks in unregulated online gambling. Industry participants should not fear this change – the improved product offering and service from Entain, coupled with greater regulation of the online betting environment should result in a fairer deal for kiwi punters.

Nothing will change except competition will be removed. I also wonder where they pulled their supposed revenue growth figures from. The issue as to why punters bet elsewhere will not be addressed - so why would they suddenly return to something they clearly weren't happy with? 

Edited January 30 by mardigras

[mardigras]

If geo blocking comes in, the best thing Entain could do would be to remove fixed odds and revert to totalisator betting only. Captive audience, guaranteed returns. Risk free - never needing to restrict an account holder or member of the public.

I could support them if they did that.

[Hesi]

Perhaps a direct question needs to be asked of NZTR, what is the specific strategy to upgrade tracks in NZ, in light of the abandonments at Hastings and Trentham