TAB Seeks Variation To Authorisation Of Its Arrangements With Tabcorp To Reflect Partnership Agreement With Entain

The Commerce Commission (Commission) has received a request from TAB New Zealand (TAB) seeking to vary the authorisation granted by the Commission to certain arrangements between the New Zealand Racing Board (now called TAB) and Tabcorp Wagering Manager (Vic) Pty Ltd (Tabcorp).

TAB is a statutory body that provides betting services to New Zealanders and makes returns back to New Zealand racing and sporting organisations. Entain plc (Entain) is a multinational sports betting company based in the United Kingdom.

In 2016 the Commission authorised conduct relating to the commingling of TAB’s and Tabcorp’s horse and greyhound betting pools. Under the authorisation, TAB and Tabcorp are able to restrict take-out rates from commingled pools (betting rules provisions) and the rebates or commissions that TAB and Tabcorp pay high volume customers (revenue leakage provisions). The authorisation expires on 29 August 2025.

In March 2023, TAB and Entain agreed to enter a strategic partnership agreement whereby TAB will delegate its betting and wagering functions to Entain. TAB has requested that the authorisation be varied to apply to Entain when it becomes a party to the provisions that were authorised by the Commission in 2016. TAB is not seeking any other amendments to the authorisation, including to its scope or length.

The Commission may amend, revoke, and/or revoke and substitute an authorisation if the Commission is satisfied that:
• The authorisation was granted on information that was false or misleading in a material particular;
• There has been a material change of circumstances since the authorisation was granted; or
• A condition upon which the authorisation was granted has not been complied with.

TAB submits that its strategic partnership with Entain is a material change of circumstances that warrants the Commission amending the 2016 authorisation.

A public version of TAB’s request for a variation to this authorisation is available on the Commission’s case register.

The Commission seeks submissions from interested parties on TAB’s request for a variation. Submissions can be sent by email to registrar@comcom.govt.nz with the reference “TAB Authorisation Variation”. Any submissions should be received by close of business on 24 May 2023.

Background

In 2016 the Commission granted authorisation to the New Zealand Racing Board (now TAB) in decision [2016] NZCC 17. The strategic partnership between TAB and Entain requires the approval of the Minister of Racing under the Racing Industry Act 2020.

The Commission may grant authorisation under sections 58 or 65AA of the Commerce Act 1986 (the Act) for agreements that may otherwise breach the Act if it is satisfied that the agreement will in all the circumstances result, or be likely to result, in such a benefit to the public that the conduct should be permitted.

The Commission’s Authorisation Guidelines explain when anti-competitive agreements that may lessen competition will be authorised under section 58 of the Act, and our process for determining such authorisation applications. A copy of the guidelines can be found on the Commission’s website.

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