Monday 28th August 2006
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The partnership between Tabcorp and the New Zealand Racing Board will aim to increase coverage of New Zealand and Australian races and examine co-pooling between New Zealand and Tabcorp.
The MOU will allow the New Zealand Racing Board and Tabcorp to exclusively advance negotiations towards achieving:
The New Zealand Racing Board is already a significant importer of Australian racing.
Since 2001, Tabcorp has been importing New Zealand racing on a regular basis each Saturday. Coverage has increased to include Wednesday and Thursday racing.
Tabcorp managing director and chief executive officer Matthew Slatter and New Zealand Racing Board chief executive Graeme Hansen said that both organisations were committed to working towards a number of objectives to benefit both customers and racing codes.
Slatter said the signing of the MOU created the platform to strengthen and develop the Australian and New Zealand racing industries.
"This partnership paves the way for a range of exciting initiatives that will deliver benefits for all three codes of the Australian and New Zealand racing industries, our customers and Tabcorp," Slatter said.
"The signing of the MOU with the New Zealand Racing Board forms part of Tabcorp's strategy to target selected expansion opportunities in international markets."
Hansen said: "The move is part of the New Zealand Racing's Board's internationalisation strategy that could eventually see similar relationships with other countries." Hansen said the benefits to punters of co-mingling include larger betting pools and, as a result, a better spread of betting dividends.
"It would also address anomalies such as occurred in last year's Melbourne Cup where the heavy betting here on a New Zealand favourite meant the dividends paid to punters were less than those Australian punters collected on the same investment."
The co-mingling would result in increased coverage of New Zealand racing within Tabcorp's wagering programme, which will also benefit New Zealand racing codes, Hansen said.
"Co-mingling has been shown to increase turnover for the participating totes as the larger pool sizes encourage customers to bet with more confidence given that odds volatility diminishes," Hansen said.
"The agreement presents the NZ Racing Board with the potential to export further New Zealand race product into Australia, to import more product from Australia and the opportunity to gain a competitive edge in the international marketplace.
"In this way, we will cement New Zealand racing's position as a first tier racing country."
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