Betfair's NSW License Application Attacked

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Published: Monday, October 29, 2007 mgowanbo.cc

Aussie horseracing brass resents lack of consultation

The news that online gambling group Betfair is in discussions with the New South Wales state government on an operating licensehas evoked a strong reaction from the NSW horseracing industry.

Racing NSW chief executive Peter V'Landys has been sharply critical of the state Premier's office over reports that it plans to award betting exchange Betfair an operating licence, according to widespread reports in the Australian media.

V'Landys said the racing industry had not been consulted and the financial effects of Betfair being allowed to operate in NSW could cost the industry, already crippled by a horse 'flu crisis, tens of millions of dollars in revenue.

"Our concern is we weren't consulted," V'Landys said. "If Betfair cannibalise the totalisator revenue we could lose tens of millions in revenue. Other forms of wagering can't compete against Betfair.

"The fact is that under its proposals, Betfair would pay 24 cents for every $100 bet compared to $1 by bookmakers and $4.50 by the totalisator. Therefore, turnover would need to increase from the existing $4.5 billion per annum to something like $80 billion. That, of course, is totally unrealistic."

V'Landys said he had yet to hear from any member of the NSW government about the issue and knew only what he had read in the media about the state government's plans to award Betfair a licence.