ONLINE BETTING DOWNUNDER FOR BETFAIR

2 November 2007

Australia's New South Wales government considering a license


Online betting exchange firm Betfair could soon have an operating license for Internet gambling in the state of New South Wales, according to widespread reports in the Australian media Sunday.

The New South Wales government is apparently in discussions with the online gambling company's Aussie operations, which are half owned by James Packer's PBL company and already have a licence to operate in Tasmania.

Gaming and Racing Minister Graham West says around a quarter of the people who use the Betfair website come from NSW and the state may be missing out.

"Betfair is an Internet product, so because it is already licensed in an Australian jurisdiction, it is easy for people to jump online and use it," he said. "It is not a question of creating a new method, it is a question of how we get the best revenue out of that for NSW and especially the racing industry."

A spokesman for West later confirmed the state government was "examining how corporate bookmakers and betting exchanges, including Betfair, can be made to contribute to the NSW racing industry and to the government to help fund critical services like hospitals, schools and police".

The official Opposition in NSW says it is concerned about the government granting Betfair a licence. Gaming and racing spokesman George Souris claimed [that the betting exchange concept] is banned in 47 of the 50 leading thoroughbred racing countries in the world... and he is worried that the betting exchange system allows punters to bet on losing horses.

Betfair spokesman Andrew Twaits has defended the integrity of the gaming site. "We have the most transparent operating system of any waging operator anywhere in the world," he said.

ABC Online reported that NSW Premier Morris Iemma intervened to bring his Gaming and Racing Minister, Graham West, into discussion with the agency. West apparently told a budget estimates hearing that Iemma instructed him to tackle the issue.

The Premier's office refused to comment over the weekend on speculation that the half-owner of Betfair, James Packer's PBL, or associates on PBL's behalf, had lobbied the premier or his chief of staff to license the organisation in NSW.

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