News
NZ First donors back tax relief proposal for racing
Brief
A leaked industry report says horse racing needs tax changes and other support to remain viable, as several large donations linked to racing have been declared to NZ First.
In-depth
The report, prepared for TAB NZ by racing industry figures, says the sector is unsustainable without further tax breaks and other measures. It recommends allowing TAB NZ to operate online casinos, shifting the cost of the industry integrity board to government, and making structural changes including consolidating property ownership and management.
The document says the racing industry faces a structural deficit of more than $50 million a year and could exhaust cash reserves by the end of the 2027/28 season if no further support is provided. It identifies falling foal numbers, fewer breeders, and race meetings being cancelled because of track conditions as major causes of decline.
The report also says administrative costs are about $91 million a year and recommends cutting them by merging the boards of horse and harness racing into a single entity. It says the sport's participants and audience are ageing, with weak youth engagement affecting betting levels.
The report is set to be considered by the Racing Minister, who is also the leader of NZ First. Donations associated with the racing industry make up a significant share of the party's declared funding this year, including contributions from two committee members and related businesses. A party spokesperson said donations are handled by party officials rather than ministers or MPs.
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