Betfair loses race fields legislation case

[blueport]

http://www.racingandsports.com.au/racing/rsnewsart.asp?NID=244113&story=High_Court_Rejects_Betfair%27s_Claim

Interesting to see what this will mean for the future.

Now that NSW have won the case it sets a precedence for other states to follow.

This paragraph is very interesting.

“It will directly and significantly reduce the competitiveness of wagering on racing in NSW. It is ultimately the punter who will pay for this lack of competition as it will impact on the variety, quality and value of betting on racing in NSW.

[blueport]

Victoria have already announced they will be following the lead of NSW.

Betfair have also stated they can not operate under the new race fields model.

This is bad news for exchange betting in Australia.

[Euler]

Betfair obviously don't think it's important as they haven't made an announcement to the stock market just yet in the UK.

[andyfuller]

I am surprised they have not made an announcement as the amount of money involved is huge.

Looks like an absolute fortune has been wasted by Betfair down under. Put this on top of the UK government's move to bring bookies back onshore and it has been an expensive 10 days for Betfair - did someone say Premium Charge reform?

[Euler]

Looks like other territories are keen to follow suit: -

http://www.smh.com.au/business/victoria ... 1w37r.html

[Euler]

http://www.racingpost.com/news/horse-ra ... g/1007994/

You get the feeling this could bolster the actions of other legislations to seek to strike a different deal than those currently on the table.

[jmcole]

Being from Australia I would be very disappointed if this decison causes Betfair to cease being licensed and operating in Australia. I know that there are issues with Betfair, but in my opinion they have been the best thing to happen to the gambling industry as they have highlighted what an inferior product was being served up to the public by the all consuming TAB's.
Those in the racing industry who are celebrating this windfall are kidding themselves if they think that all the money exchanged on racing through Betfair would be transferred over to the TAB and then into their pockets if Betfair ceased operating. People use Betfair because they realised that they were getting fleeced by the TAB's and their massive take out percentages.
I don't understand the specifics of the ruling, but I can't quite work out how you can tax on turnover as I would have thought that the money invested on racing could often pass through bookmakers, Betfair and the TAB and at the end someone wins and someone loses. To me it seems that the same dollar will be getting taxed several times under this ruling.
Ultimately it will be the punter who pays for this and with the amount of other gambling options available, the racing industry should perhaps take the time to reflect that it is the punter who funds their existence.

[mugsgame]

BF has been paying this tax since the original ruling in 2006.

At the end of the day the Oz product isn't well enough established for them to pass this cost directly onto customers.........yet. But who knows what they will do. My guess if they are true to form is as much as they think they can get away with.

This may be the forerunner of what the bookies in the UK want.
Interesting times.

[jmcole]

Latest release from CEO, Betfair Australasia re recent court case can be found at

http://www.betfaircorporate.com.au/media/press-releases.html

Read press release for 3 April 2012

[Finoh]

To quote from Betfairs press statement, "we will be reviewing the commercial options available to us in order to best respond to the judgment".

Now I am not the brightest chook in the pen, but to me this sounds like we are going to increase some form of charge to our valued customers.

Any more enlightened opinions on the possible course of action that Betfair might take.

Cheers

Finoh