Mike Todd, the chief executive officer of Tab NZ, New Zealand’s gaming company, has declared his departure. This decision follows the New Zealand government’s authorization of the company’s strategic collaboration with Entain.
The arrangement, finalized in March of this year, will see Entain supply gambling and broadcasting services to Tab NZ for the upcoming 25 years.
The government’s approval signifies that the agreement will become effective on June 1st. Tab NZ states that the partnership will promptly bring financial enhancements to the three racing codes and 38 national sporting organizations.
Mark Stewart, Chairman of Tab NZ, remarked: “This authorization fulfills a key suggestion of the Messara Report (2018) and we are pleased that the Minister for Racing has approved the strategic partnership agreement.”
“Tab NZ is at a critical juncture in its history, due to unparalleled competition from unregulated foreign operators and the prevailing global economic challenges.”
With the backing of the new agreement, the Tab NZ board has pledged to substantially increase distributions to the racing codes over the next five years.
The minimum amount for the 2023-24 fiscal year will be NZ$170 million (GBP 86 million / EUR 99 million / USD 107 million), a 36% rise from the current fiscal year.
From 2024 to 2028, income is anticipated to hit 175 million New Zealand dollars, climbing to 180 million in the fiscal year 2025-26, 185 million in 2026-27, and reaching 200 million in 2027-28.
In the meantime, national sports groups will receive a portion of a one-time funding boost of 15 million New Zealand dollars over the next three years. In addition, the New Zealand Sports Authority will receive an extra 500,000 New Zealand dollars specifically for investing in women’s athletics.
Moreover, a commitment of 5 million New Zealand dollars will be made as an initial payment for harm reduction. This includes a 4 million New Zealand dollar investment to speed up the deployment of facial recognition technology to cover 100 Tab venues, and a 1 million New Zealand dollar research fund to support gambling harm research.
“We believe this 25-year strategic alliance will change the landscape of sports betting in New Zealand,” said Dean Shannon, Entain Australia CEO. “We are thrilled that it will help deliver substantial financial benefits to New Zealand’s three major racing codes and numerous national sports organizations.”
Tod Steps Down as Chief Executive Officer
Shortly after government approval was confirmed, Tab NZ also announced that Tod would be stepping down from his position as CEO.
Nick Roberts will assume the position on June 1st, focusing on the transition and leading the remaining Tab NZ into its future state.
The remaining legal entities will operate in a smaller model, concentrating on the functions retained by Tab NZ.
This involves meeting legal requirements, overseeing Entain’s regulatory and commercial achievements, investigating new business ventures with Entain, and collaborating with the government to revamp New Zealand’s online gambling regulations.
“As Chief Legal Officer and subsequently Chief Transformation Officer, Nick was a key member of the team that worked to ensure the strategic partnership with Entain,” stated Stuart at Tab NZ.
“Keeping Nick’s business savvy and legal expertise, especially his experience and profound understanding of the New Zealand legal landscape, the gambling environment, and the contractual foundation of the Entain agreement, will be essential for the Tab NZ Board, our regulators, and the stakeholders who depend on Tab NZ funding.”
Roberts added: “We have secured a transformative change for the future of horse racing. Now it’s up to the leaders across the horse racing industry to grasp this chance and construct a sustainable operating model over the next five years that provides top-notch products and experiences for customers.
“Our sporting partners will also gain from Entain’s investment in goods and services. Several significant national sports organizations will be able to make substantial investments in participation and elite performance due to the additional funding received by Tab NZ.”
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