Entain, following its recent partnership with TAB New Zealand, has landed in hot water for violating the New Zealand Gambling Act by unlawfully advertising its products. The company finds itself in this situation just days after obtaining ministerial permission to operate within the country.
The green light given by Racing Minister Kieran McAnulty allowed Entain to seize control of TAB NZ, granting the enterprise permission to drive operations for the subsequent quarter century. Entain’s arrival is anticipated to invigorate the NZ gaming landscape, with a lofty $900 million investment in the domestic racing sector planned to unfold over the coming five years.
Despite these auspicious beginnings, a rocky start emerged as the government discovered Entain had circulated sports betting promotions to customers post-ministerial sanctioning, but prior to the finalisation of the TAB NZ agreement. It’s important to note that despite NZ not adopting a stringent stance on gambling, offshore operator promotions are explicitly forbidden.
As per gathered reports, Entain distributed emails encouraging players to take advantage of an enticing sports betting offer.
Obsolescence of New Zealand’s Laws
The 2003 Gambling Act of New Zealand is widely perceived as being obsolete. While there is an absence of legislative blocks to offshore gaming, explicit prohibition of foreign gambling site advertisements targeted at local consumers is enforced by law.
In response to this situation, Entain vocalised its willingness to back immediate regulation in New Zealand. However, the company’s spokesperson underscored that current regulations do not impede sites from conducting business with New Zealand-based customers.
The company’s spokesperson reassured the public that Entain has been assiduously working to end its unlicensed ventures in NZ subsequent to the ministerial approval of the TAB NZ collaboration. Closure processes for Party Casino and Bwin within the country are claimed to be well underway, according to the spokesperson.
Notwithstanding the defiance of regulations, McAnulty remains optimistic about Entain’s capability of enforcing comprehensive compliance with the Act, coupled with an effective minimization of gambling-associated harm. He remains hopeful that Entain’s considerable scale and accrued experience will enhance TAB NZ’s capacity to proffer superior harm reduction strategies compared to the country’s existing ones.
Current legal provisions allow only TAB and Lotto to offer lawful online gambling services in New Zealand; notwithstanding, the region is frequently targeted by international entities. With the binding regulations being less stringent, New Zealand presents a favourable playground for corporations seeking lenient norms.
Yet, discussions regarding online gambling regulation are not uncommon, leading to the possibility of imminent legislative modifications.
Entain’s Other Complications
This incident is not the first saga of troubles for Entain. Last year, the company was hit with a mammoth multi-million penalty for various AML violations in the United Kingdom. Moreover, the firm was recently revealed to be clandestinely lobbying against the UK’s white paper.
In April, the operator was slapped with a hefty penalty in Australia over unlawful gambling products. At the same time, Entain currently finds itself grappling with an HMRC investigation.
