Entain has allegedly violated the New Zealand Gambling Act within a week of getting ministerial approval, as a subsidiary of the British gambling company was found to have been sending advertising materials days before the company’s TAB partnership was officially given the green light.
On May 25th, the gambling giant received Racing Minister Kieran McAnulty’s permission to take over TAB operations for 25 years, a move that would guarantee a NZ$900-million investment in the country’s racing industry over five years. Under the deal, TAB’s monopoly over racing and sports betting would be extended to the online environment, where there are little to no regulations in the country.
According to reports, on May 29th, Entain’s subsidiary Party Casino sent an email to a New Zealand customer to promote a free sports betting offer, only days before the acquisition officially came into effect and just one week after Minister McAnulty gave the nod to the deal.
Mr McAnulty did not provide detailed information about the situation but explained that the new TAB operating entity is expected to comply with all laws of New Zealand, including the legal requirements existing under the provisions of the Gambling Act 2003, the Overseas Investment Act 2005, the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, and the Racing Industry Act 2020.
For the time being, advertising of offshore gambling services is suspended by section 16 of the country’s Gambling Act 2003. Under the provisions of the Gambling Act, the Department of Internal Affairs is given limited powers to address such legislative breaches from foreign online gambling providers.
Problem Gambling Foundation Shares Concerns with Entain’s Corporate Behaviour and Recent Monetary Penalties
A Problem Gambling Foundation’s spokesperson commented on the situation, saying that advertisements such as the one in Party Casino’s emails should not be allowed to happen and reminded that offshore operators are not legally permitted to be advertising their services to local customers.
On the other hand, a spokesperson for Entain confirmed that the company was aware of the aforementioned claims. The British gambling operator’s representative, however, preferred to draw attention to the wider lack of online gambling regulation in New Zealand, rather than to address the advertising issues. Entain’s spokesperson further noted that there was currently no legislation that effectively prevented the hundreds of offshore casino operators or offshore betting providers from actually offering their services to the residents of New Zealand.
The Problem Gambling Foundation has other concerns regarding the behaviour demonstrated by Entain.
In 2022, the UK Gambling Commission (UKGC) imposed a massive £17-million fine over violations of safer gambling and anti-money laundering (AML) laws, mostly within its popular Ladbrokes brand. The company also faced an AU$78,540 fine from the state regulator of the Northern Territory in February 2023 after it was found to have encouraged a problem gambler to register a Ladbrokes account and then failed to recognise his behaviour as risky. Apart from that, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has started an investigation into the company over alleged anti-money laundering failures.
Recent research carried out by Regulus consultancy firm, Entain generated an estimated NZ$2 million in New Zealand markets in 2020.
- Author
Olivia Cole
