[…] Betfair can take bets from right around the country [Australia], but needs a change in law in states other than Tasmania – where it is already licensed – to enable it to advertise. Mr Twaits says the laws are invalid and are holding racing back.
“-Thoroughbred racing’-s share of the total gambling pie in Australia has dropped from 26 per cent in 1991-92 down to 8 per cent last year, and it’-s continuing to slide,”- he said. “-And the reason for that is that punters, or gamblers generally, are moving to low-margin products that have nothing to do with racing and racing doesn’-t earn a return from those forms of gambling. As a low-margin operator, what we offer racing is the chance to compete better with those non-racing low-margin operators and return a fair amount to the industry.”-
The NSW racing industry says Betfair does not return a fair amount to the industry, paying 24 cents per $100, compared to $1 from bookmakers and $4.50 from the TAB. But Mr Twaits says that is “-just plain wrong”-. “-We’-ve never put an offer to any racing industry official in the country that has been in those terms,”- he said. “-What we have offered to do is to pay a share of our gross revenue to the racing industry and a share of the gross revenue that we’-ve offered to pay is in line with what the TABs pay here in Australia. What matters is how much punters spend with wagering operators. So what they spend with us and what they spend with the TAB might be markedly different but if we agree to pay the same percentage of that spend to the racing industry then they should be happy with that.”-
Thanks to Niall O’-Connor for this interesting link.