E-sports have been officially recognised as a national sports organisation (NSO) as the TAB admits it is facing financial strain after a huge drop in revenue due to the cancellation of sport across the world.
With 1 NEWS exclusively revealing that e-sports is now an NSO, the TAB has opened books on it, meaning an instant cash injection to the New Zealand federation.
One of the fastest growing sports in the world, e-sports is played globally by millions.
With coronavirus taking other betting options away, the timing couldn't be better for the TAB, which is having to cut staff and has reached out to the Government to get through the unprecedented times.
“We're predicting that the rest of the year the cost to TAB is about $14 million at a profit level and about $1 million a month we pay to sport NSOs as part of our agreement,” RITA chief operating officer Stephen Henry said.
The brutal situation is seeing trackside on camera and behind the scenes contractors cut to save money.
Limits on mass gatherings have driven audiences online for their sporting fix.
TAB bosses are also reaching out to the Government about their predicament.
“What we have been, like many businesses, is actually talking to Government and making sure they understand our situation and understand the impact that if our profit keeps declining that we support 17,000 New Zealanders,” Henry said.
TAB officials concede if racing is stopped, it will have a monumental impact.
For now, the NRL, AFL and A-League are still playing, generating enough turnover, but they'll have some sudden cash from New Zealand's newest sport.
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