To ensure the success of Rugby World Cup (RWC) 2011 in New Zealand, regional tourism organizations (RTOs) were expected to collaborate with each other as part of developing a nationwide approach to the event, while simultaneously competing for visitor nights and spending. Simultaneous cooperation and competition is referred to as coopetition. Relatively little is known about the impact of coopetition on knowledge transfer dynamics. The study analyzes how coopetition among the RTOs affected knowledge transfer dynamics between RTOs in the RWC 2011 context. The study utilized an exploratory, qualitative case study approach. Twenty-five semistructured interviews with CEOs and senior managers from RTOs were conducted both preevent and postevent. A formal survey and a documentation review triangulated the findings. The results indicate that a continuum of competition and collaboration (i.e., coopetition) was present in the RTO network for RWC 2011, which restricted the flow of potentially useful knowledge and information. The set up of RWC 2011—especially the regional bidding process to host teams and matches—played an essential role and impeded interregional collaboration and knowledge transfer while simultaneously facilitating competition among the RTOs. The study concludes that coopetition can hinder the sharing and transfer of knowledge in a destination marketing and mega-events context. The study thus addresses the call for research in this field and enhances understanding of how to better leverage mega-events in the future.