Betfair exits South Africa

[Bet Angel]

http://www.betangel.com/blog_wp/2012/01 ... an-market/

[andyfuller]

The biggest story can't be far off coming to a head - Australia!

Surely is only a matter of time - I am not as confident as Betfair seem to be and they are in the last chance saloon on this one!

"Moreover, if the Betfair and Sportsbet High Court appeals are dismissed (which would be viewed as an effective endorsement of the approach taken by Racing NSW), it is possible that some sports administrators may seriously consider moving away from the existing gross profits-based product fees that they have voluntarily entered into with wagering operators to turnover-based fees."

[CaerMyrddin]

They lost the first time they went to court, this is an appeal already, so things aren't looking bright!

I wonder if it makes any difference, yesterday I watched a SA market and liquidity seemed high, so it makes you wonder how much money is being gambled from these countries?

[enzabella2009]

Betfair was banned in Italy in 2007 and only in 2012 they started to talk with the Italian authorities to regolate the betting exchange . So is that mean Betfair will start to talk with South African authorities in 2017?

[Euler]

We started getting messages on SA a few days ago but waited until we had official word from Betfair before going public with a message. I doubt there is a great deal of business in SA but it's a shame as it's on the same time zone as the UK and is English speaking, so a potentially complimentary business. The Aussie stuff would be more of an issue.

[andyfuller]

They lost the first time they went to court, this is an appeal already, so things aren't looking bright!

The case is now in the highest court in the land so what is said goes - end of as I understand it.

Can't see how Betfair can carry on there if it goes against them.

[CaerMyrddin]

I don't fully understand the implications of an eventual decision, but maybe someone from Australia can clarify a few points. As far as I understood, the NSW gaming comission wants to charge betfair based on turnover and that would put them out of bussiness, but what would happen in Victoria, for instance? Maybe I'm messing the states, but mt question is, would this put Betfair in jeopardy in all Australia, since it's an action coming from one state alone?

[andyfuller]

The ruling will only apply to NSW as I understand it but it then opens the door for other states to follow suit.

[Euler]

But isn't this why Betfair changed their terms recently? It's probably a pre-emptive change of business model designed to survived an negative ruling?

[Euler]

viewtopic.php?f=15&t=5387

[andyfuller]

As I understand it the money has been getting collected but been put 'on ice' depending what happens with the court case.

Has Betfair allowed for this money in their accounts?

I saw the new T&C's for Oz as part of the new bookmaking arm that is hitting the UK sometime later this year? And nothing to do with the court case, maybe I am wrong? But why would you need to change the terms before the ruling, it may go Betfair's way after all.

I can't see how Betfair's exchange model can survive a turnover tax which ever way they try to do it. A traditional bookmaker could make a go of it, but an exchange model surely not.

[sweetybt]

I presume this doesn't impact Borrowdale racing from Zimababwe. I couldn't cope with such a blow.

Surely Betfair and Mugbabe would come to an agreement as they have so much in common.

[andyfuller]

[rubysglory]

The ruling will only apply to NSW as I understand it but it then opens the door for other states to follow suit.

Correct Andy. The ruling would be effective to NSW events only. In the short term Betfair would probably cease offering a service on any events in NSW. There is historical evidence to suggest that this would also result in reduced NSWTAB turnover on particualy NSW based events thus making such action counter productive - given that the underlying historical intent of this action is to protect the NSWTAB and increase NSWTAB turnover from which Racing NSW receives funding. Of note however, from what I understand, Betfair's objection is not to the law itself but rather the administrative decision process which is seen to be both unconstitutional and discrimatory. At present, Racing NSW has now to explain to Court why it so blatantly claims that that commission expected to be paid by Betfair of 60% of its gross revenue as compared to that of 9% paid by NSW TAB is fair, reasonable and more importantly not biased or prejudiced. The Courts in previous statements have already suggested that Betfair may have a case if they were to claim detrimental prejudice. Betfair have already won one restraint of trade case in Australia when Western Australia tried to lock them out when the Australian license was first granted so maybe here goes again. This is why PBL was initially offerred 50% of Betfair's Australian license so that by being an Australian owned Company they could argue restraint at a Federal Constitutional level that demands fair and free Trade among the States - ie: Tasmania (Betfair) and the mainland States.

As for The Tasmanian Gaming Commission having granted Betfair race wagering and sports betting endorsements as part of its Tasmanian Gaming Licence, I see no conspiracy theory in this. Betfair have offerred a one-stop exchange and paramutual service to Australian wallet holders for a while now. IMO, this is just an extension of that and something that Australian punters have demanded as against having to have multiple betting accounts with multiple odds providers. As for the potential internal business conflicts this decision creates, that's something different again.

rg

[rubysglory]

Australian High Court Ruling:

http://www.racenet.com.au/news/78741/Be ... urt-ruling

rg