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Entain PLC on Tuesday said its strategic partnership with TAB New Zealand has received approval from the New Zealand Minister for Racing.
Entain is a sports betting and gambling company, which owns brands such as bwin, Coral, Ladbrokes, PartyPoker and Sportingbet.
TAB New Zealand is a statutory body that provides betting services to New Zealanders and makes returns back to New Zealand racing and sporting organisations.
The 25-year strategic partnership terms will see Entain take over the running of TAB NZ. It includes a payment by Entain, and an ongoing gross profit share arrangement.
Entain have agreed to make payments of up to NZ$260 million, around £132 million. Ongoing gross profit share, plus those payments, are expected to result in minimum guaranteed funding to TAB NZ of over NZ$1.0 billion in the first five years of the arrangement.
Subject to conditions of completion, the strategic partnership is expected to commence on June 1.
‘We are delighted and honoured to have received ministerial approval to finalise the strategic partnering agreement between TAB NZ and Entain Australia,’ said Chief Executive Officer Dean Shannon.
He added: ‘We believe this 25-year strategic partnering arrangement will be a game-changer for sports betting in New Zealand and we are pleased that it will help provide significant financial benefits to the three New Zealand racing codes and the vast array of national sporting organisations.’
Entain shares were trading 0.4% higher at 1,492.50 pence each in London on Tuesday morning.
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