28th Mar 2023 09:57
(Alliance News) - Entain PLC on Tuesday said it has been selected by TAB New Zealand as its preferred partner for a 25-year strategic arrangement.
TAB NZ is established as a body corporate under the Racing Industry Act 2020. It is the only regulated racing and sports betting operator in New Zealand.
The owner of Ladbrokes and Coral said it has been selected selected based on a wide range of criteria. This includes: "operational expertise, cultural alignment with TAB NZ and its commitment to uplifting TAB NZ's harm minimisation and responsible gambling efforts."
Under the agreement, Entain has agreed to make payment of up to NZD260 million, about GBP132 million. Subject to ministerial approval, GBP81 million is payable in 2023, with the balance subject to passing of certain legislative amendments.
The London-based gaming and sports betting firm noted that in addition to the payments, the ongoing gross profit share will result in minimum guaranteed funding to TAB NZ of over NZD1.0 billion in the first five years.
The arrangement, and timing of completion, remains subject to approval from the New Zealand Minister for Racing.
Chief Executive of Entain Australia Dean Shannon said: "As the partner of choice for New Zealand, we have made a firm commitment to employment continuity for at least 24 months, with the team at TAB NZ essential to our future vision and growth of the market in New Zealand. We applaud TAB NZ for how the process has been run to date and we look forward to working with the existing management team and all stakeholders on necessary approvals to finalise the transaction."
Shares in Entain were down 0.4% to 1,173.50 pence each in London on Tuesday morning.
By Sophie Rose, Alliance News reporter
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