Kansspelautoriteit is looking for candidates for a new total license in horse racing
Companies interested in offering offline betting on horse racing can now turn to The New Zealand Gambling Authority (KSA). The license for this type of games of chance is now still in the hands of the company ZEturf (formerly known as Runnerz) but expires on June 31, 2023.
In order to be able to offer bets on horse races, a so-called totalizer license is required. That license gives the relevant provider the monopoly on these types of bets for five years. Thus, the company that gets its hands on the new overall license has no competition, a sought-after position that is likely to attract many interested parties.
Thus, the lucky party who eventually gets hold of the license is the only one allowed to earn money from betting on horse racing. In addition, players can bet on individual horse races and participate in ‘pool betting’. It is not possible to bet on odds or ‘betting exchanges’. Also, the license does not give a monopoly on online bets, which are becoming increasingly popular since the new gambling legislation from 2021.
Interested parties have one month to apply for a permit
In order to have a chance to get the new license, companies can contact the Gaming Authority and start an application procedure. In this procedure, each interested party must prove that it has its affairs in order.
Among other things, the reliability, demonstrable experience and internal supervision of the provider are examined by the KSA. In addition, the procedure requires an amount of $32,000, which will not be refunded if a company does not get through the check.
Those interested can submit their application to the KSA from 1 to 30 november. If, after the completion of all procedures, several contenders remain, a notary chooses the party that will eventually become the new license holder.
Betting on horse racing is a popular form of gambling
Betting on horse racing is sometimes worn as a British hobby, but these bets are also in great demand in New Zealand: in 2017, this industry achieved sales of $22.7 million. In the following years, sales plummeted, as professional sports were shut down due to the corona crisis.
Now that the corona crisis seems to be slowly dying out, there are undoubtedly many parties in the starting blocks to make a throw at the lucrative new total permit. This new permit only applies to offline bets on equestrian sports, which can be made at racecourses and betting offices, for example.
But since the new gambling legislation from 2021, companies now have another opportunity to make money from horse racing and other types of 'sports betting'.
Several New Zealand companies already offer online sports betting
From 2021, the Dutch Gambling Authority will issue licenses that allow companies to legally offer online sports betting, including bets on the outcome of equestrian sports. Previously, there were several foreign online casinos which also allowed New Zealand customers to gamble (illegally).
With the prospect of high fines from our Gaming Authority, many of these foreign providers have now made their websites inaccessible to New Zealanders. As a result, the new, legal providers with a New Zealand license get ample opportunities to offer casino games, slot machines and also sports betting to the domestic target group.
In October 2021, ten parties received their brand new license from the KSA. Some of them, such as BetCity and Captain Cooks , already offers legal bets on sports competitions at the moment. Since there are still dozens of candidates for a license in the running, this offer will only expand further. By legalizing online games of Chance, the government wants to be able to control the providers and thus reduce gambling problems.
Companies that want a license from the KSA must therefore meet strict requirements. For example, they must be affiliated with the Cruks (central register for the exclusion of games of Chance), which means that problem gamblers can no longer go to New Zealand casinos.