Betfair set float price

[Iron]

Whatever Betfair does with the money, I hope they're insured, so that they can always be sure of returning everyone's money, whatever happens...

Jeff

Also does anyone know what they actually do with our funds on deposit?

[andyfuller]

They have always said the funds are ring fenced so I don't think there are any issues with money being returned I just don't recall ever seeing anything that said what they actually do with the funds and where they are ring fenced.

I just found it interesting that the revenues have grown in this area it could just be from increased funds being held I guess.

[Iron]

They have always said the funds are ring fenced so I don't think there are any issues with money being returned.

True, but let's say the money is put into a savings account.

If the holding bank goes bust, then the money you deposited could go up in smoke.

You'd like to think that Betfair have taken precautions, like using more than 1 bank and insuring the deposits against that outcome. But if your deposit does go up in smoke, you can be sure that Betfair will point to some T&C clause saying that they're not liable...

Jeff

[jimrobo]

the funds might be ring fenced and seperate from company funds but there is nothing stopping them investing those ring fenced accounts.

From posts I've seen elsewhere there was mention that they were actively investing which is slightly worrying but obviously I have no idea whether this is true or not

[Euler]

The trustee deed for funds is pretty broad. So it's only ring fenced from Betfair using funds for their business by the look of it.

"17 Additional Powers of Trustee

(a) power to invest the Trust Fund in any bank certificate, money market account, deposit account or in any other Investment;

Investment means money market bank deposits, certificates of deposit, corporate bonds, commercial paper denominated in sterling, interests or participations or commitments in a limited partnership or other collective investment scheme (including, in particular, money market funds), derivative Instruments (including futures, options and contracts for differences) entered into for hedging purposes, and such other categories of investment as may from time to time be agreed by the Trustee on the one hand and the Banks on the other hand as being suitable investments for the Trust Fund on the basis (among other things) that they are low risk in nature;"

[andyfuller]

The trustee deed for funds is pretty broad. So it's only ring fenced from Betfair using funds for their business by the look of it.

I doubt many people realise this tbh. I always (stupidly) thought the money was held on deposit at a bank(s).

Who actually runs this fund?

[Euler]

Interesting conferance call from the results: -

http://www.investis.com/betfair/results ... nfcall.wav

[andyfuller]

Just listened to it and they seem pretty pleased with the new Premium Charge and sounds like very few people affected by it have changed their habits. So it is here to stay but no doubt will be tweaked to catch more people in the future.

The share price has been doing pretty well recently despite the general stock market declines.

[Euler]

Mark Davies, a member of the founding team at Betfair, and his wife Miranda, as trustees of two family trusts, are seeking more than £4m in damages from their lawyers Speechly Bircham over the sale of their shares in the London-listed company, according a High Court writ seen by This is Money. According to the legal document Davies, who left the operator in July last year, reportedly instructed the law firm to sell his shares at £13 a share following the betting exchange’s IPO in October 2010, but was allegedly told a sale would not be possible as the shares had not been registered properly. They are trustees of two family trusts that held stakes in the company. Davies recently joined the board of mobile gaming specialist Probability as a non-executive director.

[andyfuller]

Link from Scott Ferguson's blog:

Twaits is a scratching at Betfair

Betting exchange Betfair could lose its chief executive before the High Court decides on a critical case that could determine the future profitability of the corporate bookmaking industry.

Andrew Twaits informed staff on Friday of his intention to resign from the company, which is half-owned by James Packer's Crown. Twaits will stay on until February, marking seven years with the group which has helped lead the challenge against traditional tote operators in Australia. Don’t be surprised to see him leveraging his online and e-commerce expertise into a role helping businesses outside the racing industry.

Betfair is conducting a global search for Twaits’s replacement. The High Court deciding on the fees corporate bookmakers should pay Racing NSW for access to racefields information. Betfair argues that a 1.5 per cent levy on its gambling turnover is protectionist and discriminatory.

http://www.theaustralian.com.au/busines ... 6135201443

[andyfuller]

Were there sausage rolls Peter?

[Iron]

You could have made a killing on Betfair if you'd gone long during the first week in August - http://uk.finance.yahoo.com/echarts?s=B ... ff;source=;

Anyone know what the drift is due to?

Dead cat bounce maybe?

Jeff

[andyfuller]

I think it had a lot to do with the developments in Germany:

http://www.reuters.com/article/2011/09/ ... TY20110914

IMO the price went to high.

[Euler]

Were there sausage rolls Peter?

Too much food and drink for the 25 or so that turned up!

[Euler]

Ed Wray announced his intention to step down as chairman.