Entain TAB NZ

Entain / Tab New Zealand partnership

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June 2023

Entain & Tab NZ form a 25 year partnership CEE formed - Only licensed Sports & Racing Betting operator in New Zealand

August 2024

Sports betting market estimated c.$600m 2023, estimated 35% growth over 5 years to NZ$800m
Approximately 70% of market was onshore (pre legislative net)
Racing Industry Act amendment implemented “legislative net” in June 2025
Prohibits unlicensed operators from offering wagering services to customers in New Zealand
Potential for Online Gaming to be legalised in the future

Initial consideration NZ$160m
50% gross profit share with NZ$150m annual minimum guarantee the first 5 years
Additional one-off NZ$100m paid on legislative net implementation (June 2025)
Entain responsible for all marketing and operating expenses
Unrestricted access to regulated market (TAB NZ has the only wagering licence)
Entain assumed management rights of TAB NZ Wagering & Trackside Media
TAB NZ retains gaming revenue (machines & leases for shops with machines) – Entain manages operations on service fee basis

Entain plc consolidates 100% of partnership Revenue and EBITDA
Partnership arrangement means Entain does not “own” TAB NZ but effectively “leases” access to the New Zealand market

Consolidated EBITDA reflected in the cashflow & cash payments for annual gross profit share (or minimum guarantee, if larger, in first 5 years) and Tab NZ capex
Guidance 2026 Tab NZ gross profit share payment of c£70m

NPV of future gross profit share payments over 25yr agreement capitalised as contingent consideration and recognised as:
- Intangible asset (amortised over 25 yrs)
- Financial liability (discount unwinds over 25yrs); £908.6m at 31 December 2025