The New Zealand Racing Board has announced its intention to engage with Paddy Power Betfair as the first step towards potentially formalising a Fixed Odds Betting platform.

CEO John Allen issued a statement on Tuesday confirming the partnership.

“I am pleased to advise you that the Board of the New Zealand Racing Board has approved to engage OpenBet/Paddy Power Betfair (OB/PPBF) for the detailed design phase of our Fixed Odds Betting (FOB) platform project,” the statement reads.

“The decision was made after several months of in-depth analysis of the proposals. The solution proposed by OB/PPBF will provide NZRB with the ability to access a first-class FOB engine, one used by many of the major wagering organisations across the world, and partner NZRB with an organisation at the forefront of international wagering growth and innovation.

“This is a major business decision and a significant milestone in our FOB project, which was initiated earlier this year with an in-depth Request for Proposal process.

“The FOB project is a key part of NZRB’s wider strategic plan to lift distributions to the industry and build a long-term sustainable future for racing in New Zealand.

“As signalled in our Statement of Intent for 2017-19, through our investment in this FOB platform, we anticipate that this alone will add at least $17-19 million in annualised profit per year.

“With our other strategic activities, we are aiming to deliver an additional $50-55 million in annualised net profit for distributions once all fully implemented.”