The History of Sports Betting in New Zealand

It stands to reason that in a colony predominantly comprising British people, horse racing would soon become a pillar of local culture. It dates back as far as 1835, with the first thoroughbred horse arriving in New Zealand in 1840. Horse racing began in military barracks with soldiers racing their own horses while officers acted as officials. It quickly became a popular recreational activity, with races featured at the first anniversary celebrations in Auckland, Nelson, Wellington, Otago, and Canterbury.

By the late 1870s, the sport had evolved into the country’s most popular pastime, with crowds of up to 30,000 packing major race meetings. People from all walks of life saw it as a day of fun with the thrill of potentially making a fortune. The introduction of totalisators—machines designed to calculate the sum of bets and distribute winnings—further increased popularity, challenging the dominance of traditional bookmakers.

Obstacles of Sports Gambling in New Zealand

Towards the end of the 19th century, Protestant groups pressured the government to ban gambling. This resulted in the Gambling Act of 1908, which banned all gambling except horse racing and restricted punters to placing bets only at the physical race track. However, people found ways around the law through bookies who set up “false fronts”—renting rooms and using telephones and radios to connect with track insiders. This massive underground business circumvented the law by placing bets on behalf of customers who weren’t at the track.

Regulation: The Birth of the TAB

By 1951, the government realized it was missing out on substantial revenue and formed the first Totalisator Agency Board (TAB) to regulate the industry. This effectively ended the influence of illegal bookies. For decades, the TAB remained the sole provider of wagers, slowly expanding from racing to include fixed-odds sports betting in 1996.

2025-2026: The “Legislative Net” and the End of Offshore Betting

For twenty years—from 2004 to 2024—New Zealanders lived in a “regulatory gray zone” where they could legally use offshore betting sites. However, as of January 1, 2026, that door has officially closed. Following the Racing Industry Amendment Act 2025 (which came into force on June 28, 2025), the government established a total online monopoly for TAB NZ (operated by Entain).

It is now unlawful for any offshore bookmaker to accept bets from New Zealand residents. While the government has refrained from full geo-blocking, they now hold offshore operators liable for accepting Kiwi bets, with penalties reaching $5 million. This “legislative net” ensures that wagering revenue—estimated at $200 million annually—is redirected back into New Zealand racing and domestic sports codes like rugby and cricket.

The Future: A Fully Regulated Market

The future of sports betting in New Zealand is now domestically driven. While the TAB and its partner brand betcha hold the exclusive rights to sports and racing, a new Online Casino Gambling Bill is set to regulate the casino market separately in 2026. This landmark legislation brings New Zealand in line with other modern jurisdictions, prioritizing consumer protection, harm minimization, and local tax revenue.

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