Betfair Makes Progress In Australian Online Gambling Market - 11-03-07

November 3 - After a few years of negotiations between online betting exchange Betfair and the government of New South Wales, Australia's most populous state, it seems that Betfair may receive a betting licenses soon. The news once again has the state's horseracing fraternity in a tiff, unlike other parties such as the Tasmanian Thoroughbred Racing Council who see real benefits in the deal.

The NSW Government is reported to be in discussions with Betfair's Australian office, which is a joint venture between James Packer's Publishing and Broadcasting (PBL Ltd). The JV holds a license to operate in Tasmania.

Rod Thirkell-Johnston, chair of the Tasmanian Racing Council, argues that the Betfair's presence in Tasmania has lead to an increase in prize money and brought a new kind of punter to the races. The most positive aspects of Johnston's comments was that initial fears related to the integrity of racing have come to naught.

"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 and it's been very straight forward. They've been able to monitor the integrity satisfactorily."

Betfair started operating in Tasmania in February 2006 at a $4.59 million licensing cost.

Thirkell-Johnston said Betfair has resulted in an average stake increase per race of  $2,750.

Betfair is therefore realising excellent revenue for the Tasmanian Racing authority.