Betfair to exit Australia

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Naffman
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I'm just struggling to understand why Packer has being trying to purchase Betfair Aus for 2 years, when he could have just got his own bookmaker's license. Maybe he wants the exchange as I read Crown Pty Ltd made $3.1 Million off their 50% share which was interesting seen as Betfair made a $1.7 Mill loss. If Packer decides to scrap the exchange, Ladbrokes could introduce Betdaq into Australia again. Well, we certainly have a few interesting months ahead of us!
Golfer
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Joined: Fri Nov 04, 2011 10:45 pm

Full scale retrenchment from Betfair, seems like they have been scarred by regulatory battles.

What will happen to US/Italian projects? More resources or equally meak action.

....typical really, I just started to enjoy some AUS racing success.
Zenyatta
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So what happens to Australian and kiwi customers like me? Will we be locked out of the UK exchange? Although residing in New Zealand, I am a British citizen with a European Union passport.

I did build up a fair bit of knowledge about the UK horse racing from watching those markets for several years. A bit of a shame if I was to be locked out of the UK exchange just as I was about make a comeback.
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gazuty
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Location: Green land :)

Zenyatta wrote:So what happens to Australian and kiwi customers like me? Will we be locked out of the UK exchange? Although residing in New Zealand, I am a British citizen with a European Union passport.

I did build up a fair bit of knowledge about the UK horse racing from watching those markets for several years. A bit of a shame if I was to be locked out of the UK exchange just as I was about make a comeback.
It's an offence for an offshore bookmaker/ betting exchange without an Australian licence to target Australian customers. Fine A$1.7 million per day.

Not sure if NZ has similar legislation.
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Naffman
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There are a lot of people using the UK horse racing markets from Aus, so I think Betfair will have to take this into consideration as well. What I don't understand is why they don't abandon their NZL, USA and SAF markets?? I swear there is not a single dollar placed on NZL races! Surely those type of markets are costing Betfair money. Anyways, tbh I can't see the deal eventuating but we will have to wait and see.
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mugsgame
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The European markets must have some sort of protection (haha) under EU law. The Aussie legislation show just what sort of xenophobic throwbacks to the 19th century they really are.
Protectionist, elitist and deluded.
Most of my siblings now live in Aus. They love it because they wear the clothes they had in the 80's and fit in. If you look at the trades that get fast tracked into Aus citizenship, one of the top ones is Hairdressers. Apparently when you do the test they make you cut a mullet. if you can do one you're in. :)

But in all seriousness. The Aussie bookmaking industry and Government are ripping consumers off. They are selling you a product that is (average - your racing) for top price and letting you bet on it with huge over rounds. - Some of TAB books are over 140% ffs.

I thought is was bad here. I am desperately sorry for you guys. Still, at least you have nice weather (that is when it isn't too hot to actually go outside). You can always come and live in the UK. We let anyone in. Once you're here you can claim asylum. Say that your Government are ripping you off with huge over rounds and shite racing. :)

Sorry - I love Aussie bating :)
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gazuty
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Location: Green land :)

mugsgame wrote:
But in all seriousness. The Aussie bookmaking industry and Government are ripping consumers off. They are selling you a product that is (average - your racing) for top price and letting you bet on it with huge over rounds. - Some of TAB books are over 140% ffs.
Mg see my earlier posts, monopolies, duopolies and being bent over and receiving it up the .... is the way of being an Aussie consumer.

It is possible Packer licenses the software and keeps the exchange going, but really concentrates on the sports book/tab. (Although from what I read in these pages that sounds a like like betfairs strategy back home). That possibility is a hope more than anything because I make money on the exchange.

Happy to get into a broader debate on the decline the British empire although it's not really productive. But when you look around the world, you won't find many places more stable than the UK, Canada, USA, Australia and NZ. The main institutions, government, courts and legal system in these countries have all lasted more than 200 years. Everywhere else has had revolution, undemocratic government, regime change, and a general failure of institutions. Europe has been and tends to bob along in a basket case state, one step off war, murder and collapse. From east of Berlin to the west coast of Northern America, well no one would even contemplate wanting their children or grand children to grow up there. But I digress.

Turns out we've got a hell a lot of the worlds mineable resources, beaches, race tracks and sunshine. What's not to like.
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mugsgame
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gazuty wrote: Turns out we've got a hell a lot of the worlds mineable resources, beaches, race tracks and sunshine. What's not to like.
I had the chance to go a few years back when my brother went. I regret not going now. I was filling in the immigration forms and the bit where it said
"Are you willing to be fucked over by betting on 140% overrounds and will you cut your hair like Paul Young in the "Everything must change video" I am sorry to say - I bottled it.

I do love Aus though, but most of all I love the Aussie humour, at least you have some :)
steven1976
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Use to be expensive drinking in Aus, as each pint was usually followed by a punt at the bookies in the pubs. Is that still the same these days?
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gazuty
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steven1976 wrote:Use to be expensive drinking in Aus, as each pint was usually followed by a punt at the bookies in the pubs. Is that still the same these days?
Unfortunately for some it's followed by a mind numbing experience at the pokies (fruit machine). They rake in profits corporate bookies can only dream about.

The tote overround should typically be 100/85 = 117. It was a great lesson in maths. The teacher gives everyone $100 Monopoly money. We all bet on the days races using the tote prices. At the end of the day you look around the room and see what the class has and what the tote has.
hhh
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Joined: Tue Nov 29, 2011 4:25 pm

Despite all the speculation and "doom and gloom" scenarios, the risk/reward for this trade by Packer could be the start of something sensational.

Surely Packer (ft. his advisors) would have done the analysis and seen that the potential upside to owning the only exchange (+/- Betfair Brand) in Australia having too much value to ignore.

Once the inplay betting regulation changes (which I believe is just a matter of time), whoever owns the exchange in Australia will be the core of the $5b+ sports betting industry (excluding online pokies & poker). As you would expect, Crown would want to have their online ducks in a row for when/if these channels come into play.

Well aware of the issues the exchange concept has had in Australia to date, however in hindsight it has been amazing that Betfair (as a foreign company) have progressed as far as they have. Hopefully Packer and his team of jackals can do everyone a favour and give Xenophobe and V'landys a nudge into other career paths.

Amending the Interactive Gaming Act...
The following is just from my own reading so may be well off the mark however others in the know (up to date) may be able to contribute...

The Australian Government has each of the states creating a "harm minimization" plan/report in order to progress amending the Interactive Gaming Act. This is the precursor to a 5 year pilot allowing online poker to be (legally) offered to Australians.

Although online sports betting is out of scope at this point in amending the IGA, it does appear to be at the forefront of discussions and also included in the report by the Department of Broadband, Communications & Digital Economy (DBCDE) in 2013.
The principle of platform neutrality was applied by the DBCDE in its Final Report. With respect to betting, this means that a category of bets will be treated the same way regardless of the channel on which betting took place.
For more info read the attached report. Bit of a grey area around what clarifies as "micro betting" however good to see it is at least on the table.

Also on the IGA front, they have recently progressed the "Foreign Account Tax Compliance Act" (FATCA) which I have seen numerous mentions to in the IGA reviews & reports etc. I assume this is all that the Australian Government actually cares about. As per usual, the government appears to want each of the states to take ownership and come up with the proposals. (knowing how fast states work, might be 10 years away though)

Sources
Review of the Interactive Gaming Act
Page 3 - "Online Wagering"
http://www.addisonslawyers.com.au/knowl ... tralia.pdf

FATCA
http://www.mallesons.com/publications/m ... leted.aspx
Zenyatta
Posts: 1143
Joined: Thu Mar 11, 2010 4:17 pm

mugsgame wrote:
But in all seriousness. The Aussie bookmaking industry and Government are ripping consumers off. They are selling you a product that is (average - your racing) for top price and letting you bet on it with huge over rounds. - Some of TAB books are over 140% ffs.

I thought is was bad here. I am desperately sorry for you guys. Still, at least you have nice weather (that is when it isn't too hot to actually go outside). You can always come and live in the UK. We let anyone in. Once you're here you can claim asylum. Say that your Government are ripping you off with huge over rounds and shite racing. :)

Sorry - I love Aussie bating :)
Most bookies/totes in NZ/Aus end up creaming 15%-20% off the top (return to the punter of 80-85%).

But sports and betting are truly massive in Aussie, they're part of the culture, far more so than the UK. Millions of mugs wagering millions of dollars. Right up your alley I would have thought ;)

It would be a real shame if UK folks could no longer use the exchange on Aussie races. There are some iconic horse races run in Australia - including the famous Cox, Caulfield and Melbourne Cups/ Spring Carnival. Your sporting calendars would be seriously impoverished without an Australian Betfair wallet.
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mugsgame
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Joined: Wed Mar 25, 2009 11:41 pm

Zenyatta wrote: It would be a real shame if UK folks could no longer use the exchange on Aussie races. There are some iconic horse races run in Australia - including the famous Cox, Caulfield and Melbourne Cups/ Spring Carnival. Your sporting calendars would be seriously impoverished without an Australian Betfair wallet.
100% Zen
blueport
Posts: 229
Joined: Mon May 18, 2009 7:35 am

It's difficult to imagine going forward without an exchange.

Like others have said this would be a massive step backwards in the evolution of gambling in oz.

If it all ended tomorrow my only regret would be I didn't go harder while I had the opportunity.

Here's hoping for a favourable outcome.
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Naffman
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Joined: Sun Aug 11, 2013 5:46 am

It will be an Australia that I don't want to live in :lol:
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