How Sports Betting Works in New Zealand: Prices, Pools and Payouts

Only one organisation may take online sports and racing bets from people in New Zealand: TAB NZ. Since 28 June 2025 it has held that role exclusively, and its betting operation runs through a 25-year partnership with the global operator Entain that began on 1 June 2023 — with most of the money returned to the industry going to racing rather than to other sports.

This guide explains how sports betting works in New Zealand as a whole system: who is allowed to offer it, how prices and margins are set, the difference between fixed odds and the tote, how a bet is settled and paid, where the money goes, and what protects the people placing the bets.

Who is allowed to take sports bets in New Zealand

Amendments to the Racing Industry Act 2020 that took effect on 28 June 2025 made it illegal for any person or organisation except TAB NZ to promote or take bets on racing or sporting events from a person located in New Zealand. The Department of Internal Affairs (DIA), the country’s gambling regulator, monitors and enforces this ban, and offshore operators that previously offered online betting here were told to withdraw immediately (Department of Internal Affairs — Law changes for online racing and sports betting). Our guide to how New Zealand regulates offshore sportsbooks covers the enforcement side in detail.

TAB NZ does not run the betting operation alone. Under a 25-year strategic partnering arrangement with Entain that began on 1 June 2023 (TAB NZ — Racing and sport win big with TAB NZ strategic partnering arrangement), TAB NZ became a smaller statutory body focused on its remaining legislative functions, including monitoring Entain New Zealand’s regulatory and commercial performance. Our TAB NZ overview describes the betting service itself.

How bookmakers set prices and margins

Wikipedia’s entry on sports betting (Wiki) describes the bookmaker as a market maker that accepts bets on both sides of a market and keeps a spread — the vigorish — to secure a profit whatever the outcome. To guarantee a positive expected return, the chance implied by the odds is set higher than the true chance of each outcome.

Suppose a match is rated 60–40. Fair prices would be 1.67 and 2.50 (1 ÷ 0.60 and 1 ÷ 0.40), which imply exactly 100%. Offered at 1.60 and 2.35 instead, the same match implies 62.5% + 42.6% = 105.1%, and the extra 5.1 percentage points is the margin.

If money then comes in on each side in proportion to those implied chances, the bookmaker keeps about 4.8% of everything staked whichever team wins (1 − 1 ÷ 1.051). Prices can move after a market opens, but a fixed-odds price is locked in for each bet when it is placed, so a later move only affects new bets.

The calculator below shows the implied chances and the margin for any two-way market, and our odds explained guide shows how to check markets with more than two outcomes.

Fixed odds and tote pools: two ways a bet is paid

TAB NZ’s Racing and Sports Betting Rules define fixed odds as odds fixed at the time the bet is placed, so the price payable does not change afterwards, whatever the market does (TAB NZ — Racing and Sports Betting Rules). In racing, a runner withdrawn after betting has opened is a late scratching, which can bring a deduction: a percentage reduction of fixed-odds returns.

The tote works differently. All stakes go into a shared pool, and the dividend is calculated from the total wagered and the number of winning tickets once the official result is known, with deductions taken from the pool first. Any tote figure shown before the event is therefore only a guide.

Fixed odds give certainty at the moment you bet; a tote dividend reflects how the whole pool was bet. For the racing side, see our TAB racing and greyhound wagering guide.

From placing a bet to being paid

1. The bet is struck. A fixed-odds bet takes the price on offer at that moment; a tote bet buys a share of a pool that is still growing.
2. Late changes are handled by rule. In racing, a late scratching can trigger a deduction on fixed-odds returns.
3. The result is checked. In racing, protests about the placings go to the stewards before the “all clear”, which confirms the finishing order; “correct weight”, confirming the place-getters’ weights, must also be signalled before bets are paid.
4. The result becomes final. Under TAB NZ’s rules, once the official result is declared it is not affected by later protests or amendments.
5. Settlement rules apply. A fixed-odds dead heat divides the return by the number of runners involved, and a void leg is removed from a standard multi, which is then recalculated.
6. The money is paid. Fixed-odds winners receive stake × price, less any deduction, and tote winners receive the declared dividend.

Sport-specific rules, such as refunds when a margin lands exactly on the line, are covered in our guide to reading betting lines.

Where the money goes

Under the partnership, TAB NZ and Entain split gross profits 50/50, with a guaranteed minimum of NZ$150m a year for the first five years. When the deal was announced in May 2023, the TAB NZ Board guaranteed the racing codes these minimum distributions:

Sport receives far less. National sporting organisations were to share a one-off $15m uplift paid over three years, plus a $500,000 payment to Sport NZ ring-fenced for investment in women’s sport, and The Spinoff reported in 2025 that the vast majority of the money goes to racing rather than to other sports. With the offshore ban now law, The Spinoff also reported that Entain had promised TAB NZ a one-off $100m payment on top of the annual profit share.

A separate duty applies to overseas-based operators that supply gambling to New Zealand residents. Since 1 July 2024 they have paid 12% of their profits from residents — the amounts they receive minus the prizes they pay (Inland Revenue — Online gambling duty). In October 2025 the Government announced a rise to 16%, with the extra four percentage points ring-fenced for community returns (RNZ — Communities to get a cut from online gambling after backlash).

What protects the people betting

DIA warns that offshore operators may be based in jurisdictions with minimal consumer safeguards and may not return unspent credits or pay out on large wins. Inside New Zealand, bets are settled against TAB NZ’s published betting rules — from dead heats to void legs — and TAB NZ monitors Entain New Zealand’s regulatory performance. If you are new to betting, our beginner sports betting guide is a good starting point.

TAB NZ accounts also include limit-setting and self-exclusion tools. The responsible gambling tools guide explains how deposit limits and other safeguards work. The Gambling Helpline is free and confidential on 0800 654 655, or by text on 8006.

Frequently Asked Questions

Who can legally offer sports betting in New Zealand?

Only TAB NZ. Since 28 June 2025 no other person or organisation may promote or take racing or sports bets from people located in New Zealand, and the Department of Internal Affairs enforces the ban.

What is the relationship between TAB NZ and Entain?

They have a 25-year strategic partnership that began on 1 June 2023. Gross profits are split 50/50, and TAB NZ monitors Entain New Zealand’s regulatory and commercial performance while focusing on its remaining statutory functions.

How does a bookmaker make money on sports betting?

By setting prices whose implied chances add up to more than 100%. The excess is the margin, and if money comes in on each side in proportion to those chances the bookmaker keeps the difference whatever the result.

What is the difference between fixed odds and the tote?

A fixed-odds price is locked in when you bet, so the return does not change afterwards. A tote dividend is calculated from the pool after the result, once deductions are taken, and depends on the total wagered and the number of winning tickets.

Where does TAB NZ’s betting money go?

Mostly to racing. The TAB NZ Board guaranteed the racing codes at least NZ$170m in 2023/24, rising to NZ$200m in 2027/28, while national sporting organisations were to share a one-off $15m uplift paid over three years.