The TAB takes problem gambling and the integrity of sport very seriously. It also returns all profits to the community, so what's the problem? Reporter Adrian Seconi takes a closer look at where the money is going and what measures the TAB has put in place to support problem gamblers and combat corruption.
The simple answer to what the TAB does with all its millions is that it returns it to the community - or rather, the industry.
It is a significant windfall, too. In the financial year ending July 2014, the New Zealand Racing Board reported a net profit of $137 million on a record turnover of $2.088 billion.
Sports betting accounts for about 15% ($313.2 million) of the TAB's turnover but gets short-changed, with the three racing codes - thoroughbred, harness and greyhound - receiving $137.4 million, or all of the profit and then some.
Five million dollars was paid or made available to national sporting organisations, and a further $2.3 million from the TAB's gaming business goes to other sporting bodies, such as little Johnny's football club. The average size of those grants is between $10,000 and $14,000.
''You have to look at where our money is being made and where it is being returned to get a complete picture,'' TAB executive general manager Glenn Patrick said.
''The racing industry is circa 2% of the gross domestic product. It employs circa 53,000 people. It is a significant industry for New Zealand and for the New Zealand economy.''
As in any industry, though, there appears to be some waste.
Between July 2007 and July 2013 the number of employees earning more than $100,000 rose from 33 to 72. The TAB also came under attack for excessive travel expenses at a time when many in the industry are feeling the pinch. And Minister for Racing Nathan Guy, according to some of his critics, is not particularly vigilant.
But the real losers are the problem gamblers whose addictions have helped create such a vast pool of money in the first place.
''Problem gambling is something we take very seriously,'' TAB general manager of gaming Michael Wemyss said.
The TAB concentrates its efforts on raising awareness and on training its staff to spot the warning signs.
It contracts the Problem Gambling Foundation to co-ordinate and run its problem gambling courses, which extends to a half-day's training for all staff, an online course and an online refresher course.
There are also voluntary programmes for the TAB's customers, such as ''set your limits''. It operates like a toll bar. Once an agreed limit has been reached for the week, the person's TAB account is frozen for the remainder of the period.
Problem gamblers can have themselves banned as well. Their photograph and details are distributed to the branches and they are prohibited from gambling with the TAB for an agreed period of time.
But of the 130,000 or so people on the TAB's customer database, fewer than 200 people are currently adopting voluntary regulation, which suggests people are not very good at regulating themselves.
The TAB has the power to intervene and has done so in the past, Patrick says.
''If we see unusual activity with an account, we will flag that to the responsible gambling co-ordinator for further investigation,'' he said.
''We have, through that means, actually referred people for independent help.''
Wemyss said the low uptake might also reflect the size of the problem.
''From the people who present themselves for problem gambling, only about 7% of them have an issue with racing or sports betting. The vast majority is around non-casino gambling machines,'' Wemyss said.
However, sport is a growth area for the TAB. It appeals to a wider cross-section of New Zealanders, and the TAB has tailored its advertising to reach a younger audience. That, in turn, has led to it embracing technology.
Mobile phones and computers provide the TAB's customers with 24 hour access and, with the wide variety of betting options available, the gap between placing a bet and a result has shortened.
Research suggests the shorter the gap, the more likely that format will prove problematic.
''I accept your point that immediacy ... helps drive the continuation of betting,'' Wemyss said.
''But I don't think you would say racing and sports betting has the same frequency as some of those other products. There is still quite a lag between placing the bet and getting the result.''
Patrick picks up the thread: ''In our business, there will always be a very small percentage of people who may be affected in some shape or form. Then it is about how we responsibly manage that and help customers manage their own affairs.''
One of the consequences of offering customers a plethora of betting options is you also provide criminals opportunities to corrupt the process. Terms such as spot-fixing have entered our vernacular.
''Personally, I don't think it is a problem in New Zealand, but nonetheless it is something you have to take seriously,'' Patrick said.
''People are not going to place bets unless they know the integrity of the result is without question. Therefore, it is a very important question for both racing and sport administrators.''
In monetary terms, the TAB puts 80% (about $7.5 million) of its profits from its gaming business into its racing integrity programme to combat corruption.
- TOMORROW: The conclusion to our series.
