Positive Side To Betfair's NSW Venture

Published: Tuesday, October 30, 2007 Online-Casinos.com

POSITIVE SIDE TO BETFAIR'S NSW VENTURE

Whilst Racing NSW worries about betting exchange's license application, Tasmania says it's a good thing

The controversial news that online betting exchange Betfair is in negotiations with the New South Wales state government for an operational gambling license upset the state's horseracing fraternity (see previous Online-Casinos.com/InfoPowa report) but can bring real benefits according to the Tasmanian Thoroughbred Racing Council. Betfair already holds a Tasmanian license.

The debut of Betfair in Tasmania has increased prize money and introduced a new type of punter to horse racing, the chair of the state's thoroughbred racing council says. Tasmanian Thoroughbred Racing Council chairman Rod Thirkell-Johnston said he was concerned about the integrity of racing in the island state when Betfair was first granted approval, but those fears, so far, had come to nothing.

"I was very concerned about the integrity side of it, and I have to say my first opinion about Betfair was probably wrong," said Thirkell-Johnston. "There's been no problems with Betfair at all. It's been very straight forward.

"They've been able to monitor the integrity satisfactorily."

Betfair, a joint venture between the UK-based Betfair and the Packer family's Publishing and Broadcasting Limited, began it's operations in Tasmania in February 2006 for a A$5 million licence fee.

At the time the state's racing industry said the licence - which effectively ended the TAB's virtual monopoly on horse race gambling - would strip profits from state authorities and encourage corruption, reports Asia Pulse.

Thirkell-Johnston said Betfair had given a boost to the Tasmanian racing industry, raising stakes by an average of about A$3 000 a race to a minimum of A$12 000.

"It's providing very valuable revenue," he said. "Income from Betfair supplemented from the income from the tote has enabled stakes to be at their present level."

The state's TAB had not been affected by the introduction of Betfair and its revenue had actually increased slightly this year, the racing official declared. He said this was because Betfair had attracted the younger, more computer savvy "generation-Y" types to punting.

"It is those sort of people who are Betfair customers," he said. "Not your everyday, wander off the street punter.

"So what it has done is bring new business into racing."

The New South Wales government is currently considering amending its regulations to allow Betfair to have a presence in the state, with the betting exchange presently banned from sponsoring races or advertising.

The Australian Racing Board joined the fray today (Tuesday) warning that the betting exchange concept "....could destroy the integrity of Australian horse racing." Western Australia has banned the company from using its racing fields.