Betfair in UK make deal with racing industry

Reaching consensus and working together for the greater good of horseracing. Betting exchange Betfair and the British Horseracing Authority have proved it possible.

This follows the signing of a landmark five-year commercial arrangement which will be worth a guaranteed minimum of 40 million pounds to British racing.

The deal, achieved in conjunction with Britain’s Horsemen’s Group and Racecourse Association, will see Betfair paying over 10.75% of all horseracing revenues from their British users.

For their part, the BHA has committed to setting a minimum level of annual fixtures in order to optimise betting opportunities.

The announcement was made to the London Stock Exchange and coincided with the BHA’s decision to withdraw from a high court judicial review that betting exchange customers should not pay a levy on betting activities

“We are delighted that we have been able to reach an agreement with Betfair, one which represents a landmark for both the racing and betting industries,” said BHA Chief Executive Paul Bittar.

“It brings many benefits, including substantial and increased guaranteed funding, as well as importantly providing certainty for the sport in relation to Betfair’s contribution. We hope that similar arrangements with other betting operators will follow. This agreement has required a high degree of co-operation both within racing, with all the major organizations closely involved in negotiations, and of course with Betfair, who have shown great commitment in their intent to be a constructive commercial partner with our sport. In particular, I would like to recognize the BHA chairman, Paul Roy, and the board for their vision and unwavering commitment in pursuing improved and more stable financial outcomes for the sport, as without it the deal would not have been possible.”

Betfair’s Martin Cruddace added: “This deal is a genuinely historic moment. For the first time, British Racing and Betfair have proved it is possible for us to work together on a truly commercial basis.”




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What are the benefits of a Betfair account?

Unlike traditional bookmakers, who employ people to compile the odds that they offer, Betfair doesn’t set the odds. Instead it is Betfair customers who set the odds. This provides three main benefits: - On average 20% better odds

If you want to back a selection, the odds are likely to be better than a traditional bookmaker, because punters are setting prices on Betfair markets based on their opinions and (unlike a traditional bookmaker) they do not build a margin into their prices. - Back or Lay

On Betair you can back your selection to win in the “traditional” manner. Alternatively you can take the other side of the market and back a selection not to win (or “lay”).. The ability to back or lay a selection provides the added benefit of allowing you to “trade” a position and lay your bet back if it looks the likely winner, to guarantee yourself a profit. - Bet in-play

With Betfair you can back or lay right up to the final whistle of a football match or up to the last second of a horse race, at odds set by other punters.

More Comments here

Betfair is the best thing that has ever happened for punters, and has bought in a new breed of traders, who provide lots of liquidity.
Betting in the run has also been a great innovation, though those at home on a 6 second delay are taking their chances.
It has changed my thoughts on betting altogether, and am going to a Betfair advanced betting seminar in Melbourne on Wednesday that will show lots more new angles.

its a shame sa racing doesnt do the same for revenue benefit and for punters to have free choice where they want to punt

10% is still less than what bookies pay in the uk

kosbar please keep us up to date on developments for SA users - thanks

Cyprus passed a law yesterday to regulate sports betting but ban online casinos, poker and exchange betting.

The latter comes as a blow for Betfair, that had been pinning its hopes on an 11th-hour reprieve after lawmakers at the Committee stage considered replacing the outright ban with one just on exchanges offering markets on Cypriot football teams.

The betting exchange leader last week classified Cyprus as a “higher risk” territory during its last FY results presentation, the territory along with Germany and Greece accounting for 13% of the company’s core revenue in the 12 months to the end of April 2012.

Upon passage of the law through the Cypriot parliament, House Legal Affairs Committee chairman Ionas Nicolau was quoted by the Cyprus Mail as saying: “From this day we are handing over to the prosecuting authorities and the state the tools to combat this phenomenon.”

House Finance Committee chairman Nicolas Papadopoulos however said the law would not prevent people from gambling at home if they wished.

Greek betting monopoly OPAP, that runs the lottery and other games of chance in Cyprus under an agreement with Greece, has controversially been exempted from the ban. Police were this week forced to protect 168 OPAP shops after nine shops came under attack from arson and gunfire, believed to be connected to disquiet from other gambling operators over OPAP’s exemption.

Sports betting operators licensed by the EU Member State will be subject to a 10% tax on revenue, as opposed to the 3% of turnover previously proposed in the draft bill approved by the country’s Cabinet in March 2011.

They will also pay a further 3% of revenue to the new Gambling Board to be established by the new law. 2% of this will be a sports betting right – with 1.5% paid to the Cyprus Football Association and 0.5% to other associations – with the other 1% funding programmes preventing and dealing with gambling addiction.

While operators’ rights offer online gambling into Member States from jurisdictions within the EEA are enshrined within the freedom of services and establishment directives within Articles 49 and 56 of the EU Treaty, a series of CJEU decisions going against private operators have eroded these rights in recent years.

According to the CJEU, Member States can restrict private operators’ rights to offer gambling services across borders within the EU, often in favour of the incumbent monopoly, as long as their actions are “legitimate and proportionate” and can be consistently justified in terms of providing better protection for players from crime, fraud and addiction.

Belgium and Germany are among the Member States which have recently cited these rulings to justify restrictions on opening their gambling markets. Cyprus officials are sure to do the same