Big boost for racing?

Offshore betting operators could soon be charged a royalty fee for offering bets on New Zealand races and the use of racing products.

On Thursday, Racing Minister Nathan Guy announced the planed amendment to the Racing Act 2003.

In a statement, Guy said a bill was being prepared for introduction to the house as soon as practicable.

The change to the act would mean offshore betting agencies would be charged for race fields and data as well as a consumption charge for bets placed with overseas bookmakers from New Zealand.

‘‘These offshore operators use New Zealand race information for their bets without paying a royalty back to our industry for their use.

‘‘Also, by not contributing any profits back to our communities, these operators are able at work at an unfair advantage to the TAB,’’ Guy said.

Glenda Hughes, chair of the New Zealand Racing Board, and the chairs of all three racing codes were quick to come out in support of the amendment to the Bill.

The New Zealand Racing Board already pays similar fees to other jurisdictions around the world for the use of their products.

Guy acknowledged that a growing number of New Zealanders were gambling through offshore betting agencies.

‘‘A Working Group found that in 2015, about 40,000 New Zealanders turned over $518 million offshore with $58 million in losses – this represents potential lost revenue of up to $45 million for local racing and sports organisations,’’ Guy said in the statement.

Unsurprisingly, the working group found that these numbers were likely to grow.

Guy said the change to the racing act would help the New Zealand TAB be more competitive against overseas providers and retain New Zealand customers.

Many racing industry participants in New Zealand have been calling for the changes to the bill for close to a decade.