|Monday, January 09, 2006
|Investment bank questions returns of exchange betting
Investment bank Stanley Morgan has questioned Betfair’s projected returns to racing and government in Tasmania. The return where projected “dangerously high” by the Tasmanian Premier Paul Lennon when he pushed through the Betfair license against the advise of the entire Australian racing sector.
Lennon said that the online betting exchange will secure 4 per cent of the market, but this is according to Stanley Morgan highly optimistic. The Thoroughbred Racing Council agrees with Stanley Morgan’s findings, according to which the returns to racing and state are likely to be half of what has been projected by Betfair.
According to Betfair, their projections are on the conservative side.
In the mean time, Australian bookmakers warn punters that they will be breaking the law if they place bets with Betfair, even after the online betting exchange is licensed in Tasmania. According to state laws, they say, anyone other than a licensed bookmaker are banned from offering or publishing odds. Any individual who would place bets with Betfair would therefore be considered an illegal bookmaker by any state other than Tasmania.