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Racing Industry Act 2020

TAB New Zealand - Distribution of TAB NZ surpluses and betting profits

73: Regulations relating to distribution from betting profits

You could also call this:

“Rules for sharing out money from betting”

You can learn about how money from betting profits is shared out. The Governor-General can make rules about this. These rules say how TAB NZ can give out money from its betting profits. The money can go to racing groups and to Sport and Recreation New Zealand. TAB NZ can also keep some money to help stop gambling harm.

There are limits on how much money can be given out. From 1 July 2020 to 30 June 2021, it can’t be more than 2.67% of TAB NZ’s betting profits. After 1 July 2021, it can’t be more than 4% of the betting profits.

The rules explain how to work out the betting profits. It’s done by taking all the money TAB NZ gets from bets, then taking away the refunds and the money paid to winners.

Before making these rules, the Minister has to talk to the Minister for Sport and Recreation. These rules are called secondary legislation, which means they are published in a special way.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS292127.

Topics:
Money and consumer rights > Gambling Business > Industry rules
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Part 3 TAB New Zealand
Distribution of TAB NZ surpluses and betting profits

73Regulations relating to distribution from betting profits

  1. The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations prescribing the method to be used for determining the amounts that may be—

  2. distributed by TAB NZ from its betting profits to—
    1. each of the racing codes; and
      1. Sport and Recreation New Zealand; and
      2. retained by TAB NZ from its betting profits for the purpose of carrying out its duties in relation to harm prevention and minimisation in respect of betting conducted under this Act.

        1. However, regulations made under subsection (1)(a) must not result in an amount to be distributed that exceeds,—

        2. for the period beginning on 1 July 2020 and ending on 30 June 2021, 2.67% of TAB NZ’s betting profits:
          1. for any period on or after 1 July 2021, 4% of TAB NZ’s betting profits.

            1. In this section, betting profits means profits for totalisator racing betting, sports betting, and fixed-odds racing betting or other betting (if any) conducted by TAB NZ calculated in accordance with the following formula:

              p = a – b – c

              Where:

              • p p

                is betting profits

              • a a

                is the total of all amounts received by TAB NZ or its agents (including the net return from bets laid off) for—

              • totalisator racing betting (other than equalisator betting conducted under section 75):
                1. sports betting:
                  1. fixed-odds racing betting

                    1. b b

                      is the amount of refunds paid

                    2. c c

                      is the amount of all winning dividends paid out in respect of amounts described above.

                  2. Before making a recommendation under subsection (1), the Minister must consult the Minister for Sport and Recreation.

                  3. Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                  Compare
                  Notes
                  • Section 73(5): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).