ratkin
24-07-2004, 09:54 AM
Packer swoops to crack TAB monopoly
By Daniel Hoare
July 23, 2004
AFTER an intense behind-the-scenes lobbying campaign to win approval for offshore internet gambling, billionaire Kerry Packer has joined the world's biggest betting exchange in a bid to smash the long-held monopoly of the TABs.
Publishing and Broadcasting Ltd, Mr Packer's publicly listed company, has taken a 50 per cent stake in Betfair, capitalising on a federal government decision last week to allow the London-based internet gambling outfit to operate in Australia.
The move could revolutionise the wagering industry, with punters expected to flock to Betfair, which allows them to bet directly against each other, thereby offering higher odds.
It comes after intense lobbying by PBL and Betfair, who secured cabinet support to leave open a loophole in the Interactive Gambling Act allowing international operators to encroach on the long-held turf of the TABs.
Sources in Canberra told The Australian that PBL had intensely lobbied the majority of cabinet ministers to open the door to foreigners before making an official play for Betfair.
"PBL's lobbying was the real reason the Government left the legislation alone," the source said.
"Cabinet was split on the issue - certainly the Prime Minister wasn't in favour of betting exchanges initially."
Betfair has been operating on Australian events since early 2003, and was given federal government approval to continue despite an aggressive campaign by the TABs to prevent international competition.
The company posted a net profit of pound stg. 8 million in 2003 - only its third year of operation - and is expected to erode tens of millions of dollars in revenue from the TABs, who have long held a monopoly on offcourse wagering in Australia.
Betfair aims to become licensed in all states and territories, which could make it a key player in the nation's $128 billion gambling market.
The British company said it would pay the same percentage of state revenues as the TABs, which is believed to be between 20 and 40 per cent.
The company has approached the Australian Football League, National Rugby League, Australian Rugby Union and Tennis Australia offering to pay fees, and has signed a memorandum of understanding with the Australian Cricket Board to allow it access to betting records to help investigate corruption.
All of the state and territory governments except the Northern Territory and Tasmania have publicly opposed foreign betting exchanges.
However, gambling industry sources told The Australian that most gaming ministers had privately conceded they would support licensing Betfair rather than see licence fees go to another jurisdiction.
Tabcorp, which recently swallowed the NSW TAB to form a $7.8 billion gambling empire, said yesterday it would not introduce an exchange competitor to Betfair.
Internet betting exchanges have been widely opposed by anti-gambling groups. John Dalziel, head of the Interchurch gambling taskforce, said any new form of gambling would create more problem gamblers in Australia.
http://www.theaustralian.news.com.au/common/story_page/0,5744,10216360%255E7582,00.html
By Daniel Hoare
July 23, 2004
AFTER an intense behind-the-scenes lobbying campaign to win approval for offshore internet gambling, billionaire Kerry Packer has joined the world's biggest betting exchange in a bid to smash the long-held monopoly of the TABs.
Publishing and Broadcasting Ltd, Mr Packer's publicly listed company, has taken a 50 per cent stake in Betfair, capitalising on a federal government decision last week to allow the London-based internet gambling outfit to operate in Australia.
The move could revolutionise the wagering industry, with punters expected to flock to Betfair, which allows them to bet directly against each other, thereby offering higher odds.
It comes after intense lobbying by PBL and Betfair, who secured cabinet support to leave open a loophole in the Interactive Gambling Act allowing international operators to encroach on the long-held turf of the TABs.
Sources in Canberra told The Australian that PBL had intensely lobbied the majority of cabinet ministers to open the door to foreigners before making an official play for Betfair.
"PBL's lobbying was the real reason the Government left the legislation alone," the source said.
"Cabinet was split on the issue - certainly the Prime Minister wasn't in favour of betting exchanges initially."
Betfair has been operating on Australian events since early 2003, and was given federal government approval to continue despite an aggressive campaign by the TABs to prevent international competition.
The company posted a net profit of pound stg. 8 million in 2003 - only its third year of operation - and is expected to erode tens of millions of dollars in revenue from the TABs, who have long held a monopoly on offcourse wagering in Australia.
Betfair aims to become licensed in all states and territories, which could make it a key player in the nation's $128 billion gambling market.
The British company said it would pay the same percentage of state revenues as the TABs, which is believed to be between 20 and 40 per cent.
The company has approached the Australian Football League, National Rugby League, Australian Rugby Union and Tennis Australia offering to pay fees, and has signed a memorandum of understanding with the Australian Cricket Board to allow it access to betting records to help investigate corruption.
All of the state and territory governments except the Northern Territory and Tasmania have publicly opposed foreign betting exchanges.
However, gambling industry sources told The Australian that most gaming ministers had privately conceded they would support licensing Betfair rather than see licence fees go to another jurisdiction.
Tabcorp, which recently swallowed the NSW TAB to form a $7.8 billion gambling empire, said yesterday it would not introduce an exchange competitor to Betfair.
Internet betting exchanges have been widely opposed by anti-gambling groups. John Dalziel, head of the Interchurch gambling taskforce, said any new form of gambling would create more problem gamblers in Australia.
http://www.theaustralian.news.com.au/common/story_page/0,5744,10216360%255E7582,00.html