Betfair Australasia Online Betting Acquired By Crown

Published Wednesday, August 13, 2014 - Online-Casinos.com
Betfair Australasia Online Betting Acquired By Crown

Online gambling is available in pretty much every corner of the world and Australia has a reputation as having a thriving wagering market. The battle for market share has become interesting in Down Under with struggling online gambling operator Betfair Australasia being finally taken over by Crown Resorts Limited. The company is owned by James Packer is one of Australia's largest gaming and entertainment groups which had, at June 2010, a market capitalisation of just over $6 billion AUSD.

A recent article in the Sydney Morning Herald revealed the details of the arrangement. Crown already owned a fifty percent stake in the betting firm in a joint venture created back in 2004. Britain’s Betfair Group has agreed to let their Australian subsidiary online gambling company go for an estimated $10 million. This company has not been fairing well in the fiercely competitive internet wagering business with losses of $47.3 million during the seven years to April 2013 according to the Australian Securities and Investment Commission files. Crown recently said their portion of Betfair Australasia’s losses in the six months to December 31 was already at $1.8 million.

Chief Executive Officer for Betfair, Breon Corcoran said, “We are pleased to have signed a long-term agreement that facilitates Betfair’s continued participation in the fast-growing, licensed Australian market alongside a partner with a strong local presence,” Betfair will continue to provide “technology and support services” to Betfair Australasia. The company also said it would receive a share of revenues generated by Betfair Australasia and customers would continue to benefit from Betfair’s pooled exchange. Consolidation in the online betting sector is quite common these days as the market heats up the big fish get bigger.  In the past five years a number of bookies, led by Paddy Power, Ladbrokes and William Hill, have become involved in the $13 billion Australian online wagering industry.

 

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