Southland Racing Club president Sean Bellew claimed promotional top-ups of money in TAB accounts were causing ''unwitting punters'' to become addicted to gambling.
The issue was brought to Mr Bellew's attention when his wife's TAB account was credited $20, he said.
While he described himself as a gambler, his wife did not bet often, and by crediting the accounts of occasional gamblers, the TAB was enticing them to bet more often.
The $20 top-up was equivalent to the Invercargill Licensing Trust handing a gambler $20 at the pokies, which ''just wouldn't happen'', he said.
''They're trying to get people addicted to gambling ... It's like putting a drink in front of a drunk.''
The organisation had become an ''ambiguous monster'' and was ''making a mockery'' of gambling in New Zealand, he said.
The New Zealand Racing Board (NZRB), which owns the TAB, said in a statement it offered new customers a $20 bonus when they deposited $10 over the spring racing season.
''From time to time, customers who have not bet for some time will have $5 deposited into their account,'' the statement said.
''The NZRB takes gambling harm very seriously, and we have a range of initiatives in place to reduce problem gambling including self-exclusion and betting limit programmes to support customers who may wish to restrict their betting activity.''
Problem Gambling Foundation director of communications and marketing Andree Froude said offering financial incentives to gamble was ''concerning'' and could ''encourage people to spend more than they can afford''.
Advertising such as the TAB's ''Now you're in the game'' promotion, which offered a $20 bonus, targeted young people, particularly young men, to try sports betting, Ms Froude said yesterday.
''It's almost grooming in its nature because it's encouraging and incentivising them to gamble and participate in something they might not have done otherwise.
''We don't want to see a whole new demographic of problem gamblers, nor do we want to see saturation advertising that normalises gambling, particularly for children and young people.''
