Australian betting operator Tabcorp is holding talks with the New Zealand Racing Board (NZRB) over the future of the NZ TAB’s fixed-odds betting business.

On Monday, NZRB spokesperson Kate Gourdie confirmed that the state-owned betting agency was in talks with Tabcorp and two other unnamed companies about “automating” the NZ TAB’s fixed-odds division.

Earlier this year, the NZRB warned that its costs were rising at a rate that was “not sustainable” due to Kiwi punters opting to wager online with internationally licensed betting operators that offered better odds and a wider variety of betting options. The NZRB suggested “outsourcing or partnering” some aspects of its operations might be more cost-effective.

Gourdie declined to offer specifics regarding the possible role of Tabcorp or the other two contenders in running the TAB’s business. Gourdie said it was “far too early for us to discuss potential solutions when we don’t know what the final option will be.”