28 March 2023
("Entain" or the “Group”)
Entain selected by TAB New Zealand as preferred partner for a 25-year strategic arrangement
Entain plc (LSE: ENT), the leading global sports betting, gaming and interactive entertainment group (“Entain” or the “Group”), announces that it has been selected by TAB New Zealand (“TAB NZ”) as its preferred partner for a 25-year strategic arrangement.
Entain was selected based on a wide range of criteria, including operational expertise, cultural alignment with TAB NZ and its commitment to uplifting TAB NZ’s harm minimisation and responsible gambling efforts.
The proposed strategic arrangement, and timing of completion, remains subject to approval from the New Zealand Minister for Racing. Further information, as appropriate, will be provided after the completion of the Ministerial approval process.
Key terms of the proposed strategic arrangement:
- TAB NZ has selected Entain as its preferred partner for a 25-year strategic partnering arrangement;
- Entain have agreed to make payments of up to NZ$260m (approximately £132m1). Subject to Ministerial approval, NZ$160m (approximately £81m1) is payable in 2023, with the balance subject to passing of certain legislative amendments;
- Ongoing gross profit share, plus payments above, to result in minimum guaranteed funding to TAB NZ of over NZ$1.0bn in the first five years of the arrangement.
Dean Shannon, CEO of Entain Australia, comments:
“We are excited to be selected by TAB NZ as its preferred partner. This is a unique opportunity to shape the future wagering experience for customers and to support New Zealand’s racing and sporting industries. We have a compelling vision for the future of TAB NZ, which includes a renewed focus on innovation and technology, and a long-term commitment to all racing, sport and industry stakeholders.
As the partner of choice for New Zealand, we have made a firm commitment to employment continuity for at least 24 months, with the team at TAB NZ essential to our future vision and growth of the market in New Zealand. We applaud TAB NZ for how the process has been run to date and we look forward to working with the existing management team and all stakeholders on necessary approvals to finalise the transaction.”
(1) NZ$ / GBP FX rate of 0.5070 as per Bloomberg at market close on 24th March 2023
(2) For the purposes of UK LR 10.4.1 R, as at 31 January 2023, the assets of the entity subject to the strategic partnering arrangement had a gross asset value of approximately NZ$138m (approximately £70m1) and generated operating profits of NZ$16m (approximately £8m1) in the year ending 31 July 2022
Investor–Relations - Entain plc
David Lloyd-Seed, Chief IR & Communications Officer
Davina Hobbs, Head of Investor Relations
Aimee Remey, VP US Investor Relations
Callum Sims, IR Manager
Media - Entain plc
Lisa Attenborough, Head of Corporate Communications
Karl deKroo, Stakeholder Engagement- Entain Australia
Jay Dossetter, Head of Corporate PR
Jodie Hitch, PR Manager
Rob Greening/Nick Hayns/Sam Austrums
Tel: +44 (0) 20 7250 1446
About Entain plc
Entain plc (LSE: ENT) is a FTSE100 company and is one of the world’s largest sports betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports brands include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet, Sports Interaction and SuperSport; Gaming brands include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. The Group owns proprietary technology across all its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis.
The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and iGaming in the US. Entain provides the technology and capabilities which power BetMGM as well as exclusive games and products, specially developed at its in-house gaming studios. The Group is tax resident in the UK and is the only global operator to exclusively operate in domestically regulated or regulating markets operating in over 40 territories.
Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AA rated by MSCI. The Group has set a science-based target, committing to be carbon net zero by 2035 and through the Entain Foundation supports a variety of initiatives, focusing on safer gambling, grassroots sport, diversity in technology and community projects. For more information see the Group’s website: www.entaingroup.com
About TAB NZ
TAB NZ is established as a body corporate under the Racing Industry Act 2020 (NZ). TAB NZ is the only regulated racing and sports betting operator in New Zealand. It conducts betting in New Zealand under the “TAB” brand, which been operating in New Zealand for over 70 years.
TAB NZ’s statutory objectives are:
- to facilitate and promote betting; and
- Subject to minimising the risk of problem gambling and underage gambling:
- maximise profits for the long-term benefit of NZ racing; and
- maximise returns under commission agreements with New Zealand national sporting organisations (NSOs).
TAB NZ operates two linear broadcasting channels under its Trackside brand and has approximately 500 retail venues.
Certain statements in this announcement are forward-looking statements, including with respect to Entain's expectations, intentions and projections regarding its future performance, strategic initiatives, anticipated events or trends and other matters that are not historical facts and which are, by their nature, inherently predictive, speculative and involve risks and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. All statements that address expectations or projections about the future, including statements about operating performance, strategic initiatives, objectives, market position, industry trends, general economic conditions, expected expenditures, expected cost savings and financial results are forward‐looking statements. Any statements contained in this announcement that are not statements of historical fact are, or may be deemed to be, forward‐looking statements. These forward-looking statements, which may use words such as "aim", "anticipate", "believe", "could", "intend", "estimate", "expect", "may", "plan", "project" or words or terms of similar meaning or the negative thereof, are not guarantees of future performance and are subject to known and unknown risks and uncertainties. There are a number of factors including, but not limited to, commercial, operational, economic and financial factors, that could cause actual results, financial condition, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Entain's ability to control or estimate precisely, such as changes in taxation or fiscal policy, future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governments or governmental regulators, or other risk factors, such as changes in the political, social and regulatory framework in which Entain operates or in economic or technological trends or conditions, including inflation, recession and consumer confidence, on a global, regional or national basis. Given those risks and uncertainties, readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of this announcement. Entain and its affiliates, and any of its or their respective directors, officers, partners, employees, advisers or agents (collectively, “Representatives”) expressly disclaim any obligation or undertaking to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise unless required to do so by applicable law or regulation.
In particular, no statement in this announcement is intended to be a profit forecast or profit estimate and no statement of a financial metric (including estimates of EBITDA, profit before tax, free cash flow or net debt) should be interpreted to mean that any financial metric for the current or future financial years would necessarily match or exceed the historical published position of Entain and its subsidiaries. Certain statements in this announcement may contain estimates. The estimates set out in this announcement have been prepared based on numerous assumptions and forecasts, some of which are outside of Entain's influence and/or control, and is therefore inherently uncertain and there can be no guarantee or assurance that it will be correct. The estimates have not been audited, reviewed, verified or subject to any procedures by Entain's auditors. Undue reliance should not be placed on them and there can be no guarantee or assurance that they will be correct.
This announcement is being issued by and is the sole responsibility of Entain. No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by or on behalf of, Entain (apart from the responsibilities or liabilities that may be imposed by the Financial Services and Markets Act 2000, as amended or the regulatory regime established thereunder) or by its affiliates or any of its Representatives as to, or in relation to, the accuracy, adequacy, fairness or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers or any other statement made or purported to be made by or on behalf of Entain or any of its affiliates or any of its Representatives in connection with Entain and any responsibility and liability whether arising in tort, contract or otherwise therefore is expressly disclaimed.