New Zealand punters will no longer be able to bet with overseas bookmaker under new laws that will come into effect next week.

Legislation making it illegal for overseas-based betting operators to accept bets from inside New Zealand unanimously passed its third reading in Parliament this week.

This will trigger a $100 million payment to TAB NZ from its strategic partner Entain, of which $20 million is expected to be paid to Sport NZ, while TAB NZ will distribute much of the money to the racing codes over time but retain some for its reserves.

The legislation will end the loss of hundreds of millions of dollars that Kiwis bet with off-shore betting agencies which provide less – or in some cases no – return to New Zealand racing and sporting organisations and do not create jobs here.

The pending law change was announced by Racing Minister Winston Peters in December and stops short of geo-blocking overseas bookmakers, instead making it illegal for them to take bets from inside New Zealand instead.