The TAB says there are no real alternatives to closing its phone betting centre in Auckland, where more than 50 people work.
Racing Board spokesperson John Mitchell says the Ellerslie building housing the centre is run down, and selling it would save at least $1 million a year.
Mr Mitchell says the agency may rehire some of the centre's 54 workers for 25 new jobs it is creating in Wellington and Christchurch.
The workers have asked the TAB to consider moving to another building instead but Mr Mitchell says that is unlikely. He says the agency wants to put the building on the market in October, so 54 people would lose their jobs from then.
Service and Food Workers Union spokesperson Len Richards says the Ellerslie building probably has to close but the union doesn't see why the TAB cannot move to another Auckland site.
He says the union will consider other options, including legal action, if the TAB confirms the closure.