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Aussie
Rules
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Media Release
BETFAIR DEFENDS ITSELF AFTER TAB ATTACK AT AJC FORUM (London, 10/04/03) Betfair.com today responded to comments made following the AJC Forum on Betting Exchanges made by the Chief Executive of the TAB, Peter Kadar. The full text of the response from the company’s Director of Communications, Mark Davies, made in an interview with aapracingandsports.com.au, can be found below: “It is ironic that these sort of comments should be made just hours after the British government sent a clear signal about the need to differentiate between fact and vested interests of commercial organisations who feel threatened, and it is important that governments and industries round the world recognise this sort of rubbish for what it is. This is smoke and mirrors of the highest order. Of course we are 'currently operating without an Australian licence and making no contribution to the staging and development of Australian racing', but not through lack of trying: we have made it absolutely clear that we want to be licensed so we can pay tax and employ people in Australia, and that we want to pay the industry. We have made it 100% clear that we will backdate any payments owed following a commercial .agreement to the first day that we started offering the product of Australian horse racing, so there will not be a single day that we have benefited from Australian racing where we have not paid for that privilege. As regards the turnover figures quoted, the argument offered today by the TAB's Chief Executive is absurd. It is widely accepted that $100m of turnover on Betfair does not equate to $100m turnover at the TAB. To deny the existence of a multiplier effect created by a low-margin business is laughable, and flies in the face of every precedent to date. We can amply demonstrate that our business, and our contributions, will not only lead to no fall whatsoever in funding for Australian racing, but could even add significantly to that funding by bringing in an international audience. We will make that clear as we continue our discussions with those whose responsibility it is to run racing in Australia, and we will pay a fee for their product accordingly. The TAB have made clear recently that it is not exchanges they want to stop, since they are talking about running one themselves. It is Betfair they want to stop, because Betfair thought of an idea before they did. Of course, they are completely justified in fighting their corner, while we bring the punter an alternative choice to their service. But fighting their corner is what they are doing, and any pretence that they are going into bat on behalf of Australian racing, still less Australian schools and hospitals, should be treated with the derision it deserves. - ENDS - Notes to Editors: 1. Betfair (www.betfair.com) was the first person-to-person betting exchange. A betting exchange allows punters to bet on prices set by punters themselves rather than by the bookmaker, which, by one independent study, results in Betfair’s odds being 20% better than bookmakers’ starting prices. 2. Betfair was launched in June 2000 and its exchange – based on the NYSE - matches up to 12,000 bets a minute. The company started taking bets from Australian residents in 2003, having contacted the Australian authorities to make clear its intention to pay a rights fee for use of Australian intellectual property. It has also made clear that it will backdate any payments due under the payment structure finally agreed. 3. The company’s co-founders – former professional gambler Andrew Black and former JPMorgan vice-president Edward Wray – were jointly voted Ernst & Young Emerging Entrepreneur of the Year 2002. 4. In 2002, Betfair was the 4th biggest sponsor of horse races in the UK in terms of the number of races covered. The company is also currently the shirt sponsor of the Premiership’s Fulham FC. 5. Strategic investors in Betfair include Benchmark Capital, UBS Capital, JP Morgan Chase.
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