New Zealand’s Table Tennis Thrives on Sports Betting Boom

The rise of sports betting in New Zealand has provided a substantial financial boost to various sporting organizations, with Table Tennis New Zealand (TTNZ) emerging as a notable beneficiary. Over the past 18 months, TTNZ has seen its annual income swell significantly, primarily due to its relationship with the country’s monopoly gambling provider, the TAB NZ. The organization now receives more than NZ$1 million each year, which translates to about NZ$1,000 for each of its approximately 1,000 amateur players.

In its annual report, TTNZ acknowledged the unprecedented challenges it faced while managing an income source that exceeded expectations. This situation arose not from the pandemic or any sporting integrity issues, but from a unique opportunity to capitalize on the surge in sports betting. The funding has allowed TTNZ to enhance its operations, professionalize its structure, increase staff numbers, and expand its grant program from NZ$60,000 to NZ$150,000 within a year.

Transforming Financial Landscape for Sports

The impact of this financial windfall extends beyond table tennis. Iain Potter, former chief executive of Basketball New Zealand, highlighted how basketball has also benefited from the increased revenue derived from sports betting, with one-third of the organization’s income now coming from wagering. This shift in funding sources has enabled basketball bodies to invest in integrity measures and develop new revenue streams, thereby enhancing financial resilience.

In contrast, Australian sporting organizations are navigating a more challenging landscape. The Australian Football League (AFL) has sought additional funding from wagering companies, while Football Australia is in the process of renegotiating its agreements. These comparisons illustrate the advantages that New Zealand sports organizations have gained from their regulatory framework.

Historically, a decision made in the 1990s allowed racing and sporting bodies in New Zealand to receive a share of total bets placed through the TAB. This policy has led to an environment where sports like football, cricket, and basketball are now on par with horse racing in terms of betting revenue. Notably, any international basketball event that someone in New Zealand bets on benefits Basketball New Zealand, creating a unique advantage as compared to their Australian counterparts.

Table Tennis and the Surge in International Popularity

The unexpected funding for TTNZ can be attributed to TAB NZ’s decision to offer betting on international table tennis, a sport that gained popularity during the pandemic. This decision has directly resulted in increased funding, allowing TTNZ to grow its investment portfolio to over NZ$1.7 million.

In stark contrast, Table Tennis Australia reported revenue of AUD 3.5 million for the last financial year, with only AUD 2.2 million sourced from government and other grants. Chief executive Nicole Adamson emphasized the organization’s aim to maintain a distance from gambling while acknowledging the reality of funding challenges for smaller sports.

Potter underscores the importance of these revenues for enhancing the integrity of sports. Funds allow for the establishment of integrity mechanisms, education for players, coaches, and administrators, ensuring that the sport remains clean and respected.

While Australian sporting codes like the NRL, Cricket Australia, and Tennis Australia receive substantial funding from product fees, they do not benefit from bets placed on international leagues, unlike their New Zealand counterparts. Potter advocates for a system where sports receive direct funding from wagering companies rather than relying on government distributions, which may not equitably support all sports.

In summary, New Zealand’s framework for sports betting has created a dynamic environment where organizations like TTNZ can thrive financially. This situation contrasts sharply with the challenges faced by Australian sports, highlighting the potential for reform in the wagering landscape. As the betting debate continues in Australia, New Zealand’s sports organizations are poised to capitalize on their unique advantages, ensuring that funding continues to flow and support the growth of sports at all levels.