Betfair to exit Australia

burdo77
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Joined: Sun Jun 09, 2013 4:13 am

I'm not sure how bookies work, however in a highly competitive industry wouldn't you think that the bookies need an exchange to balance their books, unless they just balance their books with their affiliates???
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Euler
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Location: Bet Angel HQ

I think it's worth keeping an eye on but we have to wait and see what happens. Would surely be a blunder to exit their second biggest geography.

Betfair looked set to crush all traditional bookmakers in a global firestorm, but now it seems they are set to become a niche in the UK market. A bit embarrassing if you ask me if they continue to pursue these odd policies. You don't move forward by going backwards.

It's a bit like Ebay setting up auctions rooms. Or Facebook saying there is no future in social networking. The exchange is a game changer, or should be.
andyfuller
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Joined: Wed Mar 25, 2009 12:23 pm

It is/should be a game changer but is it enough of a profit maker v traditional bookmaking? That I think is where the problem lies.
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LeTiss
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My take on that angle Andy, is that in the early days of BF, they were new and innovative and the 5% commission was absolutely fine, as they were a growing business

However, once they reached saturation point in the UK they realised a stagnant profit margin wasn't good enough, so they looked to take over the world by entering every country possible.

When that didn't go as planned they resorted to fleecing their existing database with various new charges like data usage and premium charge

Their thirst for increased profits then led them down the path of becoming a fixed odds operator.....basically becoming the exact monster they were trying to destroy 10 years ago. They seem to have developed a corporate version of 'Stockholm Syndrome'

Where do they go from here though?
The company seems to have lost the plot, they have lost their flair for innovation, and appear to be heading towards ultimate disaster

They will have nobody to blame, but themselves and their pure greed
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kelpie
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LeTiss 4pm wrote:My take on that angle Andy, is that in the early days of BF, they were new and innovative and the 5% commission was absolutely fine, as they were a growing business

However, once they reached saturation point in the UK they realised a stagnant profit margin wasn't good enough, so they looked to take over the world by entering every country possible.

When that didn't go as planned they resorted to fleecing their existing database with various new charges like data usage and premium charge

Their thirst for increased profits then led them down the path of becoming a fixed odds operator.....basically becoming the exact monster they were trying to destroy 10 years ago. They seem to have developed a corporate version of 'Stockholm Syndrome'

Where do they go from here though?
The company seems to have lost the plot, they have lost their flair for innovation, and appear to be heading towards ultimate disaster

They will have nobody to blame, but themselves and their pure greed
+1

There's only real two things in betfair's future - demise or delist. If they can get away from shareholder pressure, and ditch the current imbeciles in the wheelhouse, there might be some hope. I know... how likely is that :roll:
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CaerMyrddin
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Any hopes BF will keep opening Australian markets without an Australian license? Or would that be illegal?

Just guessing, but believe that much of the liquidity is coming outside Aus and if they could do it, ironically in the long run we would be better without those beloved turnover charges?

Am I being too optimistic?
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gazuty
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CaerMyrddin wrote:Any hopes BF will keep opening Australian markets without an Australian license? Or would that be illegal?

Just guessing, but believe that much of the liquidity is coming outside Aus and if they could do it, ironically in the long run we would be better without those beloved turnover charges?

Am I being too optimistic?
Yes. The racefield, ie list of horses in the race and saddlecloth numbers, is protected by copyright in the hands of the race club. No one else can publish the field without permission. Hence each licensed bookmaker needs an agreement with the race club/organiser.

If betfair Australia is sold, the local outfit will retain those rights (you would expect) and betfair UK will sail off into the distance. They are unlikely to thumb their nose and try and do it anyway in breach of copyright. Sure there are some smaller outfits that try and do that, but the Australian government builds pressure on anyone from a legitimate jurisdiction to play by the rules. Especially if you are an organisation that ever wants a licence to operate here.

So very very unlikely betfair UK continues and allows foreigners to bet outside Australia on Australian races. As a listed company, they are not IMHO going to take the risk of enforcement action against them.
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Naffman
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Looks like the deal is getting close - http://www.theaustralian.com.au/busines ... 6859567285#
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Euler
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Location: Bet Angel HQ

Of all Betfairs corporate strategic errors, this has to be right up there.
PeterLe
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Euler wrote:Of all Betfairs corporate strategic errors, this has to be right up there.
That would be a good question at the AGM
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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
Posts: 137
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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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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