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