Betfair loses race fields legislation case

[andyfuller]

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

http://www.betfaircorporate.com.au/medi ... eases.html

Read press release for 3 April 2012

Had to laugh at the irony of this bit:

"Competition is paramount in any industry and a highly competitive wagering landscape
is good for you, the punter, as well as the racing industry"

[mugsgame]

looking bad now:
http://racenet.com.au/news/78939/Betfai ... NSW-racing

Looks like they are going to close betting down for overseas customers

[andyfuller]

Just seen that racing Victoria are following suit. Game over for betfair oz as an exchange?

[LeTiss]

Will this soon spell the end of AUS wallets?

[CaerMyrddin]

You really hate it don't you?!

Victoria is much more important than NSW, isn't it? It will take a long time for a judicial process to be settled, but I'm a bit worried with these news.

[Euler]

Found this, which was interesting.

http://www.factsaboutfunding.com.au/

[Euler]

The agreement between the wagering operators and RV expires in August.

Mr Hines said RV had entered into its agreements with Betfair in anticipation of the High Court decision.

"A report will now be provided to the Racing Victoria board that will determine the structure and timing of any changes to our product fee regime," Mr Hines said.

RV expects to collect $53 million in race fields fees under its gross revenue agreements this financial year.

Under the 1.5 per cent of turnover arrangement operating in NSW, RV would have expected to collect $54 million over the same period.


Read more: http://www.theage.com.au/business/victo ... z1riwietK1

[Euler]

OK, here is the up to date news: -

The Board of Racing Victoria (RV) on Wednesday determined that it will move to a turnover-based product fee model based on 1.5% of turnover, increasing to 2% during the months of October and November to be paid by all wagering service providers approved to use and publish Victorian thoroughbred race fields.

The timing for implementation of the new regime is subject to any amendments that may be required to Victorian legislation to address the implications of the High Court’s judgement handed down in March and the pending judgement in a separate Federal Court case involving Sportsbet and Harness Racing Victoria (HRV).

http://www.thoroughbrednews.com.au/Aust ... x?id=59133

[Euler]

Scott has the measure of it: -

http://www.sportismadeforbetting.com/

[spreadbetting]

Betfair have pretty much cocked this up big time, they should have pulled out of NSW and played a game of chicken rather than playing ball. It's not surprising Racing Victoria have also gone the turnover route with Betfair putting up such a lame fight. Likely to be a house of cards now with others following suit.

I guess it's always possible this is a fight Betfair are happy to lose to trial the fixed odds product in Aus. Let's face it a successful fixed odds bookies profits will always dwarf the exchange profit. The only thing is can Betfair ever be a successful bookie, they have the client base in place.

[jmcole]

An interesting aside to this is that in the regranting of the Victorian wagering licence last year to Tabcorp, a licence to operate a betting exchange was also included.

At the time the Tabcorp CEO seemed very uninterested in operating an exchange due to the "integrity concerns" of exchanges.

I've always thought Tabcorp had no intention of operating an exchange, as it would show up the inadequacy of their own product.

I would suspect that a good percentage of liquidity on AUS racing comes from overseas and whilst this does not compare with the money matched in UK markets, I doubt that the racing industry would like to see this money lost altogether. Perhaps Tabcorp might have plans for an exchange if Betfair weren't around.

http://news.smh.com.au/breaking-news-na ... 1hmdt.html

[andyfuller]

Betfair's response:

http://www.betfaircorporate.com.au/Resp ... cision.pdf

Could their response be interrupted with regards to the Premium Charge as well?

"“A fee of 1.5% of turnover equates to 60% of Betfair’s revenue generated on Victorian racing
and this will increase to 80% of revenue during October and November. No business can
sustain costs at that level"

[mugsgame]

They are considering stopping overseas clients from betting on these Aus tracks. As most of the liquidity comes from overseas it means the exchange will not function as it should.

Another example of the worldwide racing industry having it's head stuck firmly up it's own arse. They think they have such a great product, yet in truth racing is dying and has been for 20 years.
The terrestrial channels don't want it anymore, and while attendances may be healthy at big meetings, it you look at the crowd on a Monday in December at Wolves you will know there are only 20 people there, and most of them work at the track or are bookies.
No disrespect to any Aussies here, but if you take a price on the TAB of 1.1 and Betfair give you 1.7 you really deserve a thrashing with a big stick. But plenty of them do it! In fact I have never seen a better TAB price than one offered on Betfair.

The biggest mystery of all is how Betfair could demonstrate that this pricing model is unfair and will cause their business to be uncompetitive. The lawyers they hired must be more stupid than the buffoons that now run Betfair!

Even at the big meetings it isn't about horses and racing, there are concerts and other side shows that get people in. The racing is incidental.

I firmly believe that once the brain dead top brass at the BHA get together with their bookie mates and go for the Aus model here. Hence Betfairs move into conventional bookmaking with their 4mill users.
Time to start thinking about another career change me thinks.......

[Euler]

Betfair's response:

"“A fee of 1.5% of turnover equates to 60% of Betfair’s revenue

I must admit to a bit of schadenfreude on that line.

[spreadbetting]

Seems Betfair have now decided to impose a trading ban on the NSW stuff. Could be the end of the AUS exchange if Racing Victoria go turnover too. I guess only time will tell if this eventually plays out in Betfair's favour.

http://www.theprofits.com.au/?p=2204

http://community.betfair.com/australian ... rkets?pg=2