ComCom backs trans-Tasman shared betting in provisional view

Tuesday 9th August 2016

The Commerce Commission thinks it should back an application to let the New Zealand Racing Board share certain betting provisions with Australia's Tabcorp.

The New Zealand betting agency sought authorisation to enter new arrangements with Tabcorp due to its concerns about commingled pools in a certain form of betting, called pari-mutuel betting, which is where the total value is consolidated. From this, the operator takes their share with the remainder paid to winners. When pools are commingled, the operator with the original pool is the 'host', while the organisation which commingles its pools is the 'guest.'

The NZRB wants a provision to restrict the rebates Tabcorp can provide to prevent it using those payments to encourage high-spending customers to bet via Tabcorp rather than using NZRB. It also wants a provision that the guest operator must process bets in accordance with the host operator's rules, with specific reference to the share an operator can take.

The commission's preliminary view is that it should grant an authorisation, with public benefits outweighing the impact of reduced competition.

"These include benefits from allowing NZRB to offer an increased number of Australian races to New Zealand residents, plus benefits to customers from having higher value pools,” chairman Mark Berry said in a statement. "In contrast, the detriment is limited and confined to a small portion of customers that engage in high volume betting."

The Commerce Commission can approve agreements which would otherwise breach the Commerce Act if it thinks the public benefit outweighs the detriments from loss of competition. The public can make submissions on the draft determination until Aug. 17.

BusinessDesk.co.nz

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