Entain Aims for 50% of New Zealand's $450M iGaming Market

Dr. Annelies De Vos · 2026-04-06

Stella David, the CEO of Entain—the company that co-owns BetMGM—just laid out some seriously ambitious plans. In a recent earnings call, she declared Entain's intent to capture up to half of New Zealand's burgeoning online gambling market. That market is estimated to be worth a cool $450 million. That's not a small bet; it's a massive strategic move. David's announcement wasn't the only big news from that call. She also revealed a $66.2 million fund specifically created to cushion the blow from a major tax hike in the UK. The remote gambling tax there jumped to a hefty 40% on April 1st. It's a clear sign that while Entain is looking to conquer new territory, it's also shoring up its defenses at home. ### Entain's Strategy for New Zealand So, how does Entain plan to grab such a huge slice of the New Zealand pie? Well, reports indicate they're actively going after three of the fifteen iGaming licenses that will be available. The licensing process kicks off this July, with the full market rollout expected in 2027. Entain has a secret weapon here: its existing New Zealand betting arm, TAB. TAB is the country's only legal retail and online sports betting provider. David pointed out that this makes Entain the "only online operator that could cross-sell between sports and iGaming." Imagine all those existing sports bettors getting offers for online slots or table games. It's a built-in customer base most competitors can only dream of. ### The Competitive Landscape It won't be a complete walkover, though. The main challenger appears to be SkyCity Entertainment Group, a gaming giant in both Australia and New Zealand. They've also announced their intention to enter the iCasino market, aiming to "become the trusted local leader." This sets the stage for a fascinating head-to-head battle for dominance in a brand-new market. ### Strong Financial Performance Fuels Expansion Entain is pushing forward from a position of strength. Their online gambling business is on a roll. Net Gaming Revenue (NGR) is expected to grow 5–7% this year. For the full 2025 fiscal year, group NGR hit $6.6 billion, an 8% increase. Their core UK and Ireland market saw 15% online growth last year, driven by an 18% jump in NGR. Of course, that UK success now comes with a higher cost. The tax increases are significant: - Online sports betting taxes rose from 15% to 25%. - Online casino taxes jumped from 21% to 40%. This directly impacts popular Entain brands like Ladbrokes and Coral for sports, and PartyCasino and PartyPoker for casino games. That's why the $66.2 million contingency fund is so crucial—it's about protecting profitability while funding new ventures. ### Looking Ahead: Cash Flow and Customer Focus David outlined other key priorities for Entain. A major goal is honing cash generation to deliver $662 million in annual adjusted cash flow starting in 2028. She also noted that while customer acquisition rates are strong (above 15%), the company needs to keep improving. The focus is on optimizing marketing spend and sales costs relative to revenue. In essence, Entain is playing a multi-front game. They're leveraging a unique advantage to attack a promising new market in New Zealand, all while managing increased costs in a mature market. It's a high-stakes strategy, but one backed by solid financials and a clear vision. The next few years will show if this bet pays off as handsomely as they hope.