GREAT RACE FOR BETFAIR
Betting exchange passes its first major Australian test with flying colours
Internet betting exchange Betfair has matched $4 million in Melbourne Cup horseracing bets in the first major test of its newly operational Australian operations, the Sydney Morning Herald reports this week.
The betting companys Hobart-based operation took bets from more than 6 500 punters worldwide on Wednesday - a figure expected to grow in future years. There were some high rollers among them - one punter lost $250 000 on the Melbourne Cup, while another pocketed $75 000.
Betfair, which was licensed to operate in Australia earlier this year, allows punters to "match" each others' bets, or bet against each other. In horse racing events like the Melbourne Cup, one backs the horse to lose, and the other backs it to win.
The price is therefore set by the punters rather than the bookmakers and Betfair, which acts like a broker, then takes a commission from the winner.
Betfair Australia corporate director Andrew Twaits said the betting exchange's new Hobart infrastructure had performed well.
"It was a terrific day for us yesterday," he said. "Our main focus was on making sure the operation performed well - and it did.
Twaits said 60 percent of the money wagered during the cup came from overseas punters. He added that local betting had doubled since the gaining of an Australian licence. "We saw a pretty sharp upswing (in local betting) this year," he said.
Betfair has operated legally in Britain since 2000 but was granted a five-year Australian licence by the Tasmanian government earlier this year. The licence was strongly opposed by sections of the racing industry but Twaits said the online exchange was stimulating the betting market for all agencies involved.
Betting exchange passes its first major Australian test with flying colours
Internet betting exchange Betfair has matched $4 million in Melbourne Cup horseracing bets in the first major test of its newly operational Australian operations, the Sydney Morning Herald reports this week.
The betting companys Hobart-based operation took bets from more than 6 500 punters worldwide on Wednesday - a figure expected to grow in future years. There were some high rollers among them - one punter lost $250 000 on the Melbourne Cup, while another pocketed $75 000.
Betfair, which was licensed to operate in Australia earlier this year, allows punters to "match" each others' bets, or bet against each other. In horse racing events like the Melbourne Cup, one backs the horse to lose, and the other backs it to win.
The price is therefore set by the punters rather than the bookmakers and Betfair, which acts like a broker, then takes a commission from the winner.
Betfair Australia corporate director Andrew Twaits said the betting exchange's new Hobart infrastructure had performed well.
"It was a terrific day for us yesterday," he said. "Our main focus was on making sure the operation performed well - and it did.
Twaits said 60 percent of the money wagered during the cup came from overseas punters. He added that local betting had doubled since the gaining of an Australian licence. "We saw a pretty sharp upswing (in local betting) this year," he said.
Betfair has operated legally in Britain since 2000 but was granted a five-year Australian licence by the Tasmanian government earlier this year. The licence was strongly opposed by sections of the racing industry but Twaits said the online exchange was stimulating the betting market for all agencies involved.
