Betfair in all states is hot tip Vanda Carson March 28, 2008
THE value of billion-dollar wagering licences held by gambling giants Tabcorp and Tattersalls could be under threat from a High Court ruling yesterday allowing the Tasmanian betting exchange half-owned by James Packer's Crown Limited to offer internet and phone betting across the nation.
Until now Betfair has been allowed to offer bets only on horse racing and sporting events in Tasmania and overseas, and for five months in Western Australia.
But yesterday's court ruling on a challenge to the ban in Western Australia means Betfair can offer bets to punters who live in any state or territory and on races across the nation.
The decision is also expected to benefit Northern Territory's corporate bookmakers, including the publicly listed Centrebet, which have been unable to advertise internet and phone services in the most lucrative betting states because of legal restrictions.
Internet and phone betting, a small part of the overall gambling market, is the fastest growing segment, especially with younger and sports gamblers.
THe wagering boss with Tatts Group, Barrie Fletton, and a gambling law expert agreed that the decision would mean Betfair could expand its offering to more online punters across the nation.
Tabcorp, the nation's largest gambling company, agreed the decision would have implications for the value of its billion-dollar wagering licences in NSW to 2014 and Victoria to 2012. However, a spokesman, Bruce Tobin, would not place a figure on how this could crimp its licence, which lets it take bets on races in those states at racetracks, through TAB outlets and over the phone and internet.
Tabcorp lobbied the NSW and Victorian governments to ban betting exchanges, and awaits a decision on if it will keep its monopoly on Victorian wagering.
Betfair has been controversial since it began operating in Tasmania two years ago because it lets punters wager on which horse, greyhound, or team will lose, not just which will win.
Mr Tobin said Betfair's entry to the broader market increased risk that the horse-racing industry would be underfunded.
Tabcorp estimated leakage from the wagering market to corporate bookmakers and others was costing the NSW racing industry more than $50million and the Victorian Government about $16million in lost taxes.
It has also argued Northern Territory corporate bookmakers' should pay a percentage of their wagering turnover to fund racing, given that their turnover has grown to an estimated $3billion.
"The TAB (outlets) generate the vast majority of funding for the industry," Mr Tobin said "Corporate bookmakers and Betfair do not contribute on an equal basis, and further leakage to interstate players will further erode racing's funding base." it was "clear that state governments are rapidly losing control over their wagering markets". Funding "by bookmakers and Betfair has to be based on turnover, not net revenues, if the industry is going to get anything of value".
Barrie Fletton, of Tatts Group, said it was an "inevitable consequence" that Betfair would be allowed to offer bets across the country but that it would take a while before this would come into effect.
Jamie Nettleton, an expert on gambling law with the Sydney legal firm Addisons, said it could also mean that Betfair and corporate bookmakers in the Northern Territory could benefit, because they paid relatively low tax in Tasmania and the territory, but could offer their services in lucrative NSW and Victoria.
Shares in Tabcorp and Tatts Group fell 2per cent yesterday, Tabcorp lost 32c to $14.28 and Tatts fell 6c to close at $3.40.
CWN Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
