Betfair exits South Africa

[andyfuller]

As I understand it the money has been getting collected but been put 'on ice' depending what happens with the court case.

Has Betfair allowed for this money in their accounts?

I saw the new T&C's for Oz as part of the new bookmaking arm that is hitting the UK sometime later this year? And nothing to do with the court case, maybe I am wrong? But why would you need to change the terms before the ruling, it may go Betfair's way after all.

I can't see how Betfair's exchange model can survive a turnover tax which ever way they try to do it. A traditional bookmaker could make a go of it, but an exchange model surely not.

[sweetybt]

I presume this doesn't impact Borrowdale racing from Zimababwe. I couldn't cope with such a blow.

Surely Betfair and Mugbabe would come to an agreement as they have so much in common.

[andyfuller]

[rubysglory]

The ruling will only apply to NSW as I understand it but it then opens the door for other states to follow suit.

Correct Andy. The ruling would be effective to NSW events only. In the short term Betfair would probably cease offering a service on any events in NSW. There is historical evidence to suggest that this would also result in reduced NSWTAB turnover on particualy NSW based events thus making such action counter productive - given that the underlying historical intent of this action is to protect the NSWTAB and increase NSWTAB turnover from which Racing NSW receives funding. Of note however, from what I understand, Betfair's objection is not to the law itself but rather the administrative decision process which is seen to be both unconstitutional and discrimatory. At present, Racing NSW has now to explain to Court why it so blatantly claims that that commission expected to be paid by Betfair of 60% of its gross revenue as compared to that of 9% paid by NSW TAB is fair, reasonable and more importantly not biased or prejudiced. The Courts in previous statements have already suggested that Betfair may have a case if they were to claim detrimental prejudice. Betfair have already won one restraint of trade case in Australia when Western Australia tried to lock them out when the Australian license was first granted so maybe here goes again. This is why PBL was initially offerred 50% of Betfair's Australian license so that by being an Australian owned Company they could argue restraint at a Federal Constitutional level that demands fair and free Trade among the States - ie: Tasmania (Betfair) and the mainland States.

As for The Tasmanian Gaming Commission having granted Betfair race wagering and sports betting endorsements as part of its Tasmanian Gaming Licence, I see no conspiracy theory in this. Betfair have offerred a one-stop exchange and paramutual service to Australian wallet holders for a while now. IMO, this is just an extension of that and something that Australian punters have demanded as against having to have multiple betting accounts with multiple odds providers. As for the potential internal business conflicts this decision creates, that's something different again.

rg

[rubysglory]

Australian High Court Ruling:

http://www.racenet.com.au/news/78741/Be ... urt-ruling

rg