Anxious wait for funding
The recommendation of an outsourced betting agency means Tennis New Zealand and other sports face uncertain times, with onethird of tennis’ income sourced from the TAB.
Tennis, basketball, rugby league and football are among the most heavily reliant on TAB commission payments – they get a percentage of the amount wagered on each sport – as a significant proportion of their total income.
In the year ending June 30, 2017, Tennis NZ’s annual report said it received $3.12 million in income with a tick over $1 million of that coming from the TAB.
That increased to $1.2 million in the past year, according to figures provided by the New Zealand Racing Board at the end of its financial year on July 31. A total of $10.1m was dished out to 34 national sporting organisations, with basketball ($2m), rugby ($1.4m) and football ($1.3m) the top three.
Tennis NZ chief executive Julie Paterson said the funding it receives from TAB is vital, but the implications of TAB operations being outsourced is unclear. ‘‘Obviously, if there was a shift in ownership of the TAB that could be of major concern to us, but we really do not understand enough about what may or may not happen next,’’ said Paterson.
The recommendation that betting operations be outsourced offshore comes from an independent review by leading Australian racing figure John Messara.
Messara recommended the NZ Racing Board continue to hold the TAB licence but contract ‘‘all operational activities to a thirdparty wagering and media operator of international scale’’.
NZ Rugby League chief executive Greg Peters hoped that an outsourced TAB could result in increased funding, but he needed further knowledge around the proposal. The NZRL received $1m in TAB commission payments in the last financial year, according to NZRB figures. The TAB’s contribution to NZRL made up just over 10 percent of their total income in the year ending March 2017, according to its annual report.
NZ Football received $18 million in revenue in the year ended December 2017. Football received $1.3m in TAB commission payments in the year ending July 31, with World Cup betting providing a big boost.