Racing betting authorisation application

Issued 9 August 2016
Release no. 11

Commission reaches preliminary view on racing betting authorisation application

The Commerce Commission has reached a preliminary view that it should grant authorisation to the New Zealand Racing Board (NZRB) to allow it, subject to certain restrictions, to commingle totalisator horse and greyhound racing betting pools with Tabcorp Wagering Manager (Vic) Pty Ltd (Tabcorp) in Australia.

The NZRB has asked for authorisation for specific provisions of proposed arrangements with Tabcorp, which include restrictions on participating in commingled pools. The restrictions under the proposed arrangements relate to the NZRB’s and Tabcorp’s take-out rates from commingled pools and the rebates or commissions that the NZRB and Tabcorp pay high volume customers.

The Commission’s preliminary view is that, while the provisions of the proposed arrangements lessen competition, the reduction in competition is likely to be outweighed by the public benefits.

“There are public benefits to commingling between the NZRB and Tabcorp. These include benefits from allowing NZRB to offer an increased number of Australian races to New Zealand residents, plus benefits to customers from having higher value pools,” said Commerce Commission Chairman Dr Mark Berry.

“In contrast, the detriment is limited and confined to a small portion of customers that engage in high volume betting,” said Dr Berry.

For these reasons, the Commission’s draft decision is that it should grant authorisation to the NZRB.

Interested parties are welcome to make submissions on the draft decision. Submissions are due by 17 August 2016 and can be sent to registrar@comcom.govt.nz, with the reference “NZRB/Tabcorp” in the subject line.

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