The new operator of New Zealand’s TAB, Entain has been accused of violating the country’s Gambling Act just a week after receiving ministerial approval, according to reports.
An Entain subsidiary, Party Casino, allegedly sent an email to a New Zealand customer advertising sports betting, while the advertising of overseas gambling is banned by the Gambling Act 2003, notes Newsroom.
A spokesperson for New Zealand’s gaming industry watchdog, Andrée Froude, commented on the case, saying that betting advertisements sent by email are banned.
“It is not legal for those offshore operators to be advertising to New Zealanders and we know that they do all sorts of things to get around our laws,” noted Froude.
A spokesperson for Entain acknowledged allegations that one of its subsidiaries had dispatched promotional materials to a customer based in New Zealand. However, the spokesperson refrained from providing any additional details or addressing the concerns related to the advertising problems.
Early last month, Entain Group announced that it had received final approval to take over control of New Zealand TAB, a major move that is projected to generate hundreds of millions of dollars for horse racing and sport.
The same day the illegal advertisement allegation surfaced, Entain published an update on its TAB NZ and 365score deals. According to the agreement, the UK-listed Entain will help to facilitate TAB NZ’s betting and broadcasting activities in New Zealand. The 25 years partnership started on 1 June 2023.
Entain expects the deal to deliver a combined EBITDA of nearly GBP15-20 million ($18.8 to 25 million) in FY24 and approximately GBP50 million ($ 62.4 million) in FY25 EBITDA multiple of 5x for both transactions.
Entain also notes the recent acquisition of 365scores will help the group to strengthen the company’s expansion, as 365scores is one of the top sports app worldwide with approximately 18 million monthly active customers.
