In just a week, Entain has taken over Tab NZ, but now encounters difficulties in New Zealand.
Entain, a global gaming operator, just gained access to the Tab NZ fortune in New Zealand, but allegedly, they're already flouting the rules. It could've been an innocent mistake, but the blunder is casting a negative light on the company.
Although Entain was bestowed the rights to the Tab NZ monopoly, the approval doesn't cover its subsidiaries. Nevertheless, Party Casino, an Entain subsidiary, reached out to New Zealand gamblers.
Newsroom, an autonomous media outlet in New Zealand, validated the delivery of an email promotion by Party Casino through a mailing list. Following a courteous salutation, Party Casino promptly offers the reader a tantalizing sports betting deal.
The faux pas, whether intentional or not, emerges at a time when Entain is outlining its newest environmental, social, and governance (ESG) plans. One of its aims is to promote safer gambling practices.
Not a Smooth Sail
New Zealand's gambling laws prohibit all offshore operators from advertising within the country. Although Entain is no longer offshore due to its control over Tab NZ, all of its unlicensed subsidiaries still are. Tab NZ and Lotto are the sole legally authorized online gaming operators in the country.
Section 16 of New Zealand’s Gambling Act 2003 clearly states, “A person must not publish or arrange to publish, in New Zealand, an overseas gambling advertisement.” The country's Department of Internal Affairs might intervene and take action against Party Casino, although it hasn't specified whether it will.
In response, Entain issued a statement that likely won't endear them to the community. They admitted to the email, but tried to pass the buck to lawmakers. They said, "It's worth noting that currently, there is no legislation that prevents the hundreds of offshore casino operators or offshore wagering providers from transacting with NZ residents."
However, the company has opted to smooth things over. They disclosed that they've started restricting access to their subsidiaries, including Party Casino and Bwin, for New Zealand residents.
The Problem Gambling Foundation Keeps a Close Eye
The foundation suspects Entain of regularly engaging in activities to bypass local laws. They highlighted Entain for allowing the email and believe that they, along with other operators, do so frequently.
The foundation isn't confident that Entain will abide by the rules unless they're compelled to. Evidence supporting this allegation includes the massive $21-million fine Entain received in the UK last year, and their focus in Australia on anti-money laundering investigations.
Entain Examines New ESG Approach
The controversy in New Zealand surfaced around the same time that Entain released its most recent ESG Report. The company declared that its ESG structure is centered on four pillars, one of which is "a focus on regulated markets."
Another is "continually taking the lead on responsible gambling and gaming." Regarding all four, the company claimed that they've "continued to make significant progress" in elevating the industry standard.
Entain recently admitted that they'll likely face legal trouble for their closed operations in Turkey. They stated that an ongoing investigation will most likely result in a substantial fine over allegations that include, among other things, bribery.
Despite this, the company is pressing forward. They take pride in their ESG initiatives and proclaim that they are "establishing the standards" for the gaming ecosystem and all of their own operations.
