Photo: RNZ
The Commerce Commission is amending the authorisation it grants to arrangements between the TAB and Tabcorp to include TAB's new partner, Entain.
TAB and betting giant Entain entered a strategic partnership agreement this month, with TAB to delegate its betting and wagering functions to the company.
TAB then requested the commission amend its 2016 authorisation to apply to Entain, so the British company could engage in the authorised conduct when it took over TAB's betting and wagering functions.
Under the commission's authorisation, TAB and Tabcorp were able to restrict take-out rates from commingled pools, or betting rules provisions, and the rebates or commissions that TAB and Tabcorp paid high-volume customers.
That authorisation would expire in August 2025.
TAB did not seek any other amendments to the authorisation, including to its scope or length.
The commission's deputy chairperson Sue Begg said on Wednesday she was satisfied the decision to outsource TAB's betting and wagering functions to Entain constituted a material change of circumstances.
"The commission considers that the amendment to the authorisation to allow Entain to give effect to the betting rules and revenue leakage provisions will result in a net public benefit compared with the situation if the amendment is not granted," she said.
"The amendment reflects the partnership arrangement between TAB and Entain, and effectively allows Entain to step into TAB's shoes in operating the commingled pools."