3 October, 2008

Betfair issues court proceedings against Racing NSW and Harness Racing NSW

Betfair today issued proceedings in the Federal Court of Australia challenging the validity of decisions by Racing NSW (RNSW) and Harness Racing NSW (HRNSW) to impose a 1.5% turnover fee for all wagering operators wishing to cover NSW thoroughbred and harness races.

The proceedings in the Federal Court are brought under section 92 of the Constitution, alleging discriminatory conduct in interstate trade and commerce.  Betfair succeeded in a separate section 92 action against the Western Australian government earlier this year.

Betfair’s Director, Corporate and Business Affairs, Andrew Twaits, said: “We’re happy to pay a fee to the NSW racing industry on all our wagering revenue but the turnover fee imposed by Racing NSW and Harness Racing NSW is highly discriminatory.

“The fee equates to around 60% of our gross revenue but less than 10% of TAB’s revenue.  Both RNSW and HRNSW are fully aware that it’s impossible for us to compete on those terms.  They’ve left us with no option but to challenge the validity of their decisions.

“The only fair basis on which to charge for race fields is to implement a gross revenue model where every wagering operator pays at the same rate.  That way, even if there is any transfer of customer expenditure from the TABs to other wagering operators, the NSW racing industry will continue to get the same proportion of revenue from every dollar spent by punters.”

3 September, 2008

EX CAGLIARI MANAGER BALLARDINI A SURPRISE MARKET SPRINGER

Bilic a weak 3-1 favourite on Betfair

SLAVEN BILIC is the 3-1 market leader on Betfair to be the next West Ham manager, but little-known Davide Ballardini is the surprise 5-1 second favourite to get the Upton Park job.

Ballardini is currently out of work, but he has a decent recent pedigree in taking over manager-less, relegation-touted clubs.

He took over at Cagliari from December 2007 to May 2008, and saved them from the drop after the previous manager was sacked.

Betfair spokesman Tony Calvin commented: “It is very early days and Bilic is the predictable favourite, though his Betfair price suggests he is rather more unlikely to get the job than some believe.

“Ballardini is a very interesting candidate to judge from the early Betfair betting.”

Prices as at 4.30pm – Betfair bet: 3-1 Bilic, 5-1 Ballardini, 11-1 Di Canio, 13-1 Redknapp, 14-1 Mancini, 18-1 Allardyce, 20-1 Guidolin, Nani.                  

1-25 KEEGAN HAS NOT BEEN SACKED BY NEWCASTLE, AFTER ALL

SKY SPORTS NEWS, quoting “sources close to the club”, were adamant that Kevin Keegan had been sacked as Newcastle manager early this afternoon – and the Betfair market on the next Premier League boss to leave his job reacted accordingly.

At 12.59pm this afternoon, at the height of the sensational gamble, Keegan was backed at 1-25 on Betfair.

But a Newcastle club announcement this evening saying that they haven’t sacked the manager threw the market into turmoil.

He immediately drifted out to 4-1, but at the time of writing he has remarkably been backed into 1-2 again.

Betfair spokesman Tony Calvin commented: “These types of situations are exactly why we keep our markets open until official confirmation has been received.”

1.     16^th August, Morning of first day of the season: Kevin Keegan is 11-2 on Betfair

2.     Evening of the 17^th August, just after 1-1 draw with Man Utd: Keegan’s odds drift to 7-1 on Betfair

3.     28^th August:  Keegan drifts to a market-high of 14-1 on Betfair

4.     12.59pm at Lunchtime today: Keegan is backed at 1-25 on Betfair

5.     1.45pm this afternoon: Despite media speculation, Keegan is still available at 1-6 on Betfair to be the next Premiership manager to leave his post

6.     6.40pm this evening, Newcastle announce that he hasn’t been sacked: Keegan drifts to 5-1

7.     7pm this evening: Keegan shortens into 1-2 again in another remarkable twist

989-1 MAN CITY ALL THE RAGE AFTER ROBINHO SIGNING

WHAT a difference a fortnight makes.

Just over two weeks ago Manchester City were beaten 1-0 at home by Midtjylland in the UEFA Cup, crushed 4-2 away at Aston Villa in the Premier League and faced the prospect of a billionaire owner whose funds looked to be running dry.

So not too much surprise that, at this stage, their Premier League title odds leapt out to 989-1 on Betfair.

But they turned their European fortunes around with a penalty shoot-out success in Denmark, and thumping 3-0 wins of their own against West Ham and Sunderland.

And now, having been bought yesterday by the Abu Dhabi United Group For Development and Investment, and buoyed further by the stunning £32m arrival of Robinho at Eastlands last night, a genuine gamble on them has been sparked that has seen them shorten into 54-1 fifth title favourites on Betfair.

And they are now a staggeringly short 11-2 chance to finish in the top four in the Premier League, and only 11-10 to finish in the top six.

Betfair spokesman Tony Calvin commented: “A lot of people thought Mark Hughes was mad to take on such an unsettled position at Manchester City at the start of the season.

“But he now appears to have struck gold - or should that be oil?

“Certainly, the odds now suggest that City have a genuine, if outside, chance of breaking into football’s equivalent of Fort Knox – namely the Premier League’s top four.”

To win the Premier League – Betfair bet: 11-8 Chelsea, 2-1 Man United,. 7-1 Arsenal, 9-1 Liverpool, 54-1 Man City, 179-1 Tottenham, 269-1 Aston Villa.

Man City: 11-2 to finish in top four, 11-10 to finish in top six.

20 August, 2008

Betfair Announces Appointment of New CEO

Betfair Australia today announced the appointment of Andrew Twaits as its new Chief Executive Officer, commencing on 16 October.  This follows the announcement by Crown Limited earlier today that Anthony Klok, Betfair’s Chief Executive Officer since December 2006, will be joining Crown in mid-October as their new International Business Development Director.

Chairman and co-founder of Betfair, Edward Wray, said; “Anthony moved across to Betfair on secondment from PBL in 2006 to guide the initial stages of Betfair’s establishment in the Australian wagering landscape. He will leave his position as CEO with the knowledge that Betfair is well placed to achieve its objectives in the Australian market.  While we’ll be sad to see Anthony go, we’re delighted that he will retain a role in the business by staying on the company’s Board.”

Andrew Twaits has been Betfair’s Director of Corporate and Business Affairs in Australia since April 2005.  He is a former lawyer and was a General Manager at Cricket Australia.

Mr Wray added; “Andrew has been crucial to the company’s continued growth in Australia over the last four years and is the natural successor to Anthony. He has worked alongside Anthony for the last two years and was the obvious choice to guide Betfair through the next stage of its development.

“The Australian wagering market is entering an exciting period and the Board is very confident in the ability of Andrew and the rest of the team to help Betfair realize its potential in this market.”

10 July, 2008

BETFAIR AND SPORTINGBET AUSTRALIA CHALLENGE NSW ADVERTISING RESTRICTIONS

Betfair and Sportingbet Australia today issued proceedings in the Federal Court of Australia challenging the validity of laws in NSW that prevent interstate licensed wagering companies from advertising in the State.

“We believe the laws are protectionist. What’s more, they’re depriving racing clubs and other stakeholders of a natural revenue stream in the form of advertising and sponsorship,” said Andrew Twaits, Betfair’s Director of Corporate and Business Affairs.

Michael Sullivan, CEO of Sportingbet Australia agreed.

“We believe this legislation is fundamentally flawed and it contradicts the spirit of business in Australia by restricting fair and open trade between the states,” he said.

“At a fundamental grass roots level, the NSW advertising ban against interstate wagering operators stops the punter from seeing the full picture,” said Mr Sullivan.

The NSW government is, for the first time, asking all interstate TABs, bookmakers and betting exchanges to pay for the right to cover NSW racing.

“We’re happy to pay a fair fee to the racing industry, but we have to be able to compete on a level playing field,” Mr Twaits said.

“The wagering landscape in Australia has changed dramatically and so have consumer preferences. If racing wants to compete with the myriad gambling options available, then the governing bodies must embrace competition and move with the times,” Mr Sullivan said.

18 June, 2008

Aussie horses double the value on Betfair

Australian punters got the better of their international counterparts overnight when backing Haradasun at 6.00 on Betfair’s global betting exchange to win the Queen Anne Stakes at Royal Ascot. The price represented nearly 100% better value than what was available with Australian TABs.

After losing his position mid-race, Haradasun was matched on Betfair at a staggering $55 on Betfair’s in-running market. A total of over $5 million was matched on the race.

Betfair spokesperson Jake Norton said: “In races such as the Queen Anne Stakes, the great thing about betting into truly global markets such as Betfair’s is that prices are less subject to parochialism.

“The flood of money from Australian Betfair customers wanting to back the Aussie runners was offset by overseas customers happy to lay them in favour of the local horses.

“The experience was the same through the UK Tote’s exotic markets, which can also be accessed directly through the Betfair site.

“Takeover Target backs up to run in Saturday’s Golden Jubilee Stakes at Ascot. He can currently be backed to win at $5.80 in Betfair’s market.”

14 June, 2008

GERMANY-CROATIA GAME IS BIGGEST FOOTBALL MATCH IN BETFAIR HISTORY

£22,948,364.46 MATCHED IN 90-MINUTE MARKET ALONE

WHEN asked, back in November, how will the absence of the home nations affect Euro 2008 turnover, one bookmaker replied: “I'd expect it to be down at least 40 per cent.”

We will spare the layer in question’s blushes, but that comment was proved mere pie in the sky as Betfair report that last night’s match between Germany and Croatia saw an unbelievable £22,948,364.46 traded on the 90-minute market alone.

That made it the biggest football match in Betfair’s eight-year history, by some distance.

The previous biggest football match odds market on the exchange was the Argentina-Mexico game in the 2006 World Cup, which saw £21,238,326.48 in traded volume.

But, despite an early evening, midweek kick-off, and a relatively low-key match where the lead didn’t change hands, last night’s Germany-Croatia game, won 2-1 by the underdogs, produced unheard of figures on the betting exchange.

Betfair spokesman Tony Calvin observed:  “It could well be that, given that the absence of the home nations, that some UK-centric bookmakers levels of turnover are indeed markedly down.

“But, given our extensive and growing worldwide client base – one in two of our new customers are non UK-based – Betfair were always confident of a vibrant Euro 2008.

“However, it must be said that we have been slightly taken aback by the huge interest in the tournament, and to see our biggest-ever market eclipsed so early in the tournament is phenomenally exciting for our football product.

“If Betfair is any barometer of the industry turnover, then this is set to be the biggest football tournament in betting history.”

11 June, 2008

HEAD REPLACES HEART AS UK & IRE PUNTERS CLEAN UP AT EURO 2008

Home bettors £2m in black as Italians suffer double-whammy

THEY may not be represented in the tournament but dispassionate UK and Ireland punters are helping to ease the credit crunch - by cleaning up during the first three days of the European Championships.

Home bettors, ruled by their heads rather than their hearts for once, are over £2million pounds in profit on Betfair’s Euro 2008 markets. Betfair customers ‘back’ and ‘lay’ bets through the exchange which means bets are matched by other Betfair account holders throughout the world.

Their European counterparts however are having less luck, with Italian punters in particular having more reason to crying than most. Not only did The Azzurri suffer a shock 3-0 defeat against the Dutch, but Betfair’s Italian customers were almost £½million out of pocket after the World Champions’ match with Marco van Basten’s side. Their punters are almost £600,000 down for the tournament so far.

Compared to UK and Ireland customers, the rest of Europe has overall losses of £50,000 on Euro 2008 markets. And Betfair punters from the rest of the world are also showing a lack of knowledge about European football, down almost £2million, with Asia performing particularly badly.

Betfair’s Director of Football Paul Witten, said: “Home Nation punters often bet emotionally and back their own countries to win. But having missed out on qualification for Euro 2008, UK and Ireland customers are betting with their heads rather than their hearts – and it seems to be doing the trick.

“The rest of Europe meanwhile is showing strong support for their own teams which is great when you win. But a 3-0 defeat like Italy suffered against Holland meant there were plenty of Italian tears before bedtime.

“All in all though, it’s great news for our UK and Ireland customers who finally have something to cheer this summer. Their countries might not be competing in Austria and Switzerland, but they are in net profit in the betting markets.” 

4 June, 2008

BETFAIR COMPUTER PREDICTS QUARTER-FINAL FAILURE FOR ENGLAND – ON PENALTIES

Anti-fraud technology tips Spain for Euro2008 glory

EVER wondered what might have been had Scott Carson not suffered his Wembley nightmare against Croatia back in November and England qualified for Euro 2008?

Well torment yourself no more because Betfair’s anti-fraud computer has calculated that Steve McClaren’s men would have crashed out in the last eight of a major tournament yet again!

Nicknamed ‘Victor the Predictor’, the Betfair machine was fed details of every international football match since 1998 and concluded that, had England qualified instead of Russia, their campaign would have ended in a quarter-final defeat by the Netherlands. However with the ‘draw’ the most probable outcome over 90 minutes, Victor decided that the Dutch would go through on penalties.*

‘Victor’ operates a ‘neural network’ meaning that it teaches itself rather than being programmed. Given a host of variables for every international game over the last ten years, it predicts the result before being told the actual result. The computer then learns from any mistakes – if only Steve McClaren could have done the same.

Jamie Morrell, Head of Innovation at Betfair, said: “We built ‘Victor’ to help our fraud team detect when the odds for a sporting event are not what they should be. Football fans like to know what might have been, so we asked Victor to predict what would happen if England had made it to Euro2008. Ironically the result was something England fans could have predicted themselves!”

Meanwhile the punters might have Germany as the 4-1 favourites to win Euro2008, but ‘Victor’ says the betting public have got it wrong and it’s Spain that will put decades of near-misses behind them and claim the title. The computer says the Spaniards will beat the Germans in the final on Sunday 29th June.

Morrell commented: “Because Victor teaches himself, we’re not precisely sure how he makes his predictions. All I can say is, since we started using Victor last autumn to predict the odds on football matches, he’s been very accurate. So Germany might be the punters choice but, on Victor’s recommendation, I’m having a wager on Spain as the value bet.”

Victor’s full predictions for Euro2008 are available at Betfair Labs on: http://labs.betfair.com/Project+and+Discussion+Viewer/?contentId=648

Current Betfair prices:-

Outright Winner Euro 2008 – Betfair bet: 4-1 Germany, 6-1 Spain, 7-1 Italy, 8-1 Portugal, 9-1 France, 27-2 Netherlands, 31-2 Croatia, 25-1 Czech Rep., 26-1 Russia, 31-1 Greece, 33-1 Switzerland, 49-1 Sweden, 54-1 Romania, 74-1 Turkey, 79-1 Poland, 119-1 Austria.

Notes to Editors:

* ‘Victor’ predicted wins and draws for group games, but where a draw was predicted at the knockout stage the marginal odds favourite was progressed through on penalties.

Since last autumn 2007 Betfair’s anti-fraud team have used ‘Victor’ to flag up when the betting on a football match is not what it should be. It means our team don’t have to be experts on Argentine league football for example, to ‘know’ when something is wrong with a particular betting market.

‘Victor’ was given information on a number of variables, such as which team was playing at home, whether it was a friendly or a competitive game, whether it was played during a group or knockout stage, how long since a group of players had last played together, as well as a number of other key details on which to base ‘his’ prediction.

29 May, 2008

Movements on the managerial merry-go-round make Mancini hot favourite for Chelsea hotseat

ROBERTO Mancini is the clear favourite with Betfair customers at just over 2-1 in the betting for the next Chelsea manager after the market took another twist today.

The former Italian international was reported to have been fired by Inter Milan yesterday in a move that should pave the way for Jose Mourinho to take the helm in the blue half of the San Siro.

Mancini, who has been backed at 28-1, is now said to be on a shortlist for the vacant position at Stamford Bridge with Mark Hughes (5-1), Luis Scolari (7-1) and Frank Rijkaard (8-1).

Alongside Mourinho (out to 69-1), Guus Hiddink has been the big drifter in the market – from a low of 11-4 the Dutch manager is now available to back at 14-1.

Didier Deschamps, Sven Goran Eriksson and Carlo Ancelotti lead the second division of contenders for the club that ‘does not accept second best’

Next Chelsea manager – Betfair Bet: 2-1 Roberto Mancini; 5-1 Mark Hughes; 7-1 Luis Scolari; 8-1 Frank Rijkaard; 14-1 Guus Hiddink; 19-1 Sven Goran Eriksson; 23-1 Carlo Ancelotti; 26-1 Didier Deschamps; 43-1 Michael Laudrup; 49-1 Marcelo Lippi; 64-1 Marco Van Basten; 69-1 Jose Mourinho.

18 May, 2008

Highlanders cause biggest shock of Super 14 by beating Crusaders

IT looked to be business as usual when table-toppers Canterbury scored an early try against the 12th-placed Highlanders today, but the underdogs went on to secure the shock result of the Super 14 season by winning 26-14.

At 5-0 up, the Crusaders traded at 1.04 in the Betfair match odds market and at 1.44 on the -17.5 points handicap line, but they went in trailing at half-time – scuppering those on the Canterbury ht-ft result at odds as low as 1.17 – and didn’t have too much difficulty in holding on for the unexpected win.

The Highlanders were matched at a high of 16 to win the match on Betfair.

27 April, 2008

699-1 Fulham come from behind to win 3-2 at Man City

FULHAM were backed at a record-breaking 699-1 on Betfair en route to an amazing 3-2 win at Manchester City this afternoon.

Betfair spokesman Tony Calvin commented: “We have had teams that have been backed at bigger prices in-running on Betfair and won - but not in the Premiership.

“It’s a record win as far as Premiership betting is concerned.”

IN-RUNNING BETTING DETAILS OF TODAY;S PREMIERSHIP MATCHES BELOW:

Man City (2) v Fulham (3)

• Man City traded at a low of 1-50 when 2-0 up

• Draw traded at 43-1

• Fulham drift to 699-1 (£1 matched at that price; with prices also taken including at 689-1, 509-1, 499-1, 489-1 and 409-1 and all rates matched thereafter down from 349-1 for far bigger size)

• Fulham equalize and draw trades at a low of 1-8

• Fulham win 3-2 in extra time

Birmingham (2) v Liverpool (2)

• Birmingham traded at a low of 1-11 at 2-0 up

• Draw traded at a high of 12-1

Tottenham (1) v Bolton (1)

• Bolton trade at 10-11 when 1-0 up

• Draw trades at a high of 3-1

Sunderland (3) v Middlesbrough (2)

• Sunderland trade at 2-7 when 2-1 up

• Boro equalise and draw trades at 1-18

• Sunderland, who drifted to 12-1, net late winner

West Ham (2) v Newcastle (2)

• West Ham trade at 1-7 when 2-0 up

• Draw trades at a high of 19-2

Wigan (0) v Reading (0)

• Draw trades at a high of 11-4

23 April, 2008

LIVERPOOL BACKED AT THE MINIMUM PRICE OF 1-100 ON BETFAIR BEFORE LAST-MINUTE SHOCKER

But draw is backed at 99-1 and 149-1 correct score glee for winning punter

A heartbreaking last-minute own-goal from John Arne Riise saw punting carnage on Betfair tonight, with winners and losers aplenty on the betting exchange, as Liverpool drew 1-1 with Chelsea.

Here are the betting facts and figures on the match on Betfair:

• A total of £40,614 was backed on Liverpool at the minimum price of 1-100 on Betfair to win the match, with nearly £300,000 traded at odds of 1-33 and shorter.

• The draw was backed at 99-1 on Betfair.

• The 1-0 scoreline was backed at a low of 1-100 on Betfair.

• One Betfair punter managed to secure odds of 149-1 about the 1-1 correct score.

• More than £4,500 was traded at 1-100 on there being less than two goals in the match.

Betfair spokesman Tony Calvin commented: “Beaten 1-100 chances in match odds soccer markets are as rare as an Avram Grant smile – but we had both tonight when that own goal went in.

“And those Betfair punters who backed the draw at 99-1 and the correct score of 1-1 at 149-1 will certainly have followed suit.”

7 April, 2008

Media Release

TOTE TASMANIA AND BETFAIR RELATIONSHIP EXPANDS FOR BENEFIT OF INDUSTRY

TOTE Tasmania has entered into an agency agreement with Betfair that will provide it with access to Betfair’s global customer base of more than one million punters.

The arrangement is anticipated to add tens of millions of dollars to The TOTE’s annual turnover.

TOTE Tasmania Chief Executive Officer Craig Coleman said the increased turnover would ultimately benefit the Racing Industry through increased returns from 2009/10.

Mr Coleman said under the agency agreement, Betfair’s customers would be given the opportunity to bet on The TOTE products.

“When you add this to TOTE Tasmania’s own plans for growth, the additional funding will help to secure the future of what is already a strong and vibrant Tasmanian racing.”

Mr Coleman said TOTE Tasmania and Betfair shared the view that the new relationship was a logical step for the national industry to offer wagering services to a new set of international customers.

“It is worth noting that Tasmania is the only jurisdiction in Australia whose licensed wagering companies are allowed to advertise in the UK,” he said.

“Betfair already has more than one million registered customers in the UK which it can market Australian racing to immediately.”

“We’ve always maintained that Betfair’s exchange products complement those of the traditional operators,” said Betfair Chief Executive Officer, Anthony Klok.

“This agreement enables us to leverage our technology and online distribution expertise to better meet the needs of our customers,” he said.

Betfair customers will now have the convenience of being able to bet on a broader range of products from their existing Betfair account.

Speech notes – Craig Coleman, CEO TOTE Tasmania

Betfair agency announcement

Minister for Racing Michael Aird, racing industry representatives, ladies and gentlemen.

Today we are making an important joint announcement with Betfair that has enormous, positive implications for the Tasmanian racing industry going forward.

I am pleased to announce that TOTE Tasmania has entered into an agency agreement with Betfair that will provide us with access via a web site link to Betfair’s global customer-base of more than one million punters.

The arrangement is expected to add tens of millions of dollars to The TOTE’s annual turnover – increased turnover that will ultimately benefit the racing industry through increased returns from the 2009/2010 financial year.

Under this innovative arrangement, Betfair’s existing customers will be given the opportunity to bet on TOTE Tasmania products online directly from their Betfair accounts.

The web site linking Betfair’s customers to TOTE Tasmania is expected to be operational in early May this year.

In my discussions with Betfair, I know that we share the view that this agency relationship was the obvious step for us to take together.

And it’s a logical step for the national industry to offer wagering services to a new set of international customers that will allow us to grow our industry further.

It’s important to note here that Tasmania is the only jurisdiction in Australia whose licensed wagering companies are allowed to advertise in the UK.

Betfair already has more than one million registered customers in the UK which it can market Australian racing to immediately.

TOTE Tasmania views today’s announcement as a very positive one for the Tasmanian racing industry.

And we look forward to working closely with Betfair on the further development of the agency relationship and other mutually beneficial opportunities.

Speech notes for Michael Aird, Minister for Racing

Betfair agency announcement

TOTE Tasmania Chairman Michael Kent, members of the TOTE Tasmania Board, CEO Craig Coleman, representatives of the Tasmanian racing industry, ladies and gentlemen.

I am very pleased to be here today officiating as Racing Minister to announce this important development for TOTE Tasmania, Betfair and, perhaps most importantly from the Tasmanian Government’s perspective, the Tasmanian racing industry.

This government is a proud and strong supporter of the Tasmanian racing industry and remains committed to ensuring a prosperous future for its many participants.

It’s a matter of public record that we have been a strong supporter of the industry for many years.

Before licensing Betfair in Tasmania, the government undertook a comprehensive investigation of the potential impact on the industry.

The government took the decision to licence the betting exchange seeing it as an opportunity too good to miss that would not only assist to guarantee the future of the industry, but the livelihoods of the many Tasmanian families directly and indirectly involved.

At the time we said the direct financial benefits to the industry would be significant. This has proven to be correct.

These benefits now being experienced were in contrast to the previous situation where Betfair was accessible in Australia via the internet, but without the framework to provide funding to the racing industry and without being subject to regulation.

I am pleased to be able to say that the Tasmanian Government was the first to licence a betting exchange in Australia.

And I am just as pleased to now congratulate TOTE Tasmania which has become the first Australian TAB to enter into an agency arrangement with Betfair – an arrangement that will open the Australian racing industry to about one million Betfair customers around the world.

Betfair’s presence in Tasmania today is not just benefiting the Tasmanian racing industry.

In addition to the additional monies being passed onto racing industry participants through increased stakes and Betfair’s sponsorship of local racing clubs, it is also sponsoring other non-racing clubs and organisations which is benefiting the broader Tasmanian community.

Our key concern throughout the Betfair negotiations was always the future of the Tasmanian racing industry – and I am very confident that today’s announcement will help to further secure that future.

The Tasmanian racing industry will be the big winner, as the agency arrangement will bring the benefits of new off shore international turnover on Australian racing into Tasmania.

As a result, the broader Tasmanian economy will also benefit through increased monies being reinvested into the Tasmanian racing industry and the communities in all parts of the state in which it operates.

Today’s announcement is an exciting development in racing and is welcomed by the government.

We look forward to seeing the industry develop further in the short to medium-term future and build on the development plans already in place under TOTE Tasmania’s leadership.

April 7, 2008

Betfair / Tote Tasmania – Agency Agreement

Q & A’s

1. Who is Tote Tasmania?

Tote Tasmania is the licensed totalisator in Tasmania. Tote Tasmania is a participant

in the SuperTAB pool.

2. When will customers be able to start betting on Tote products?

At this stage we expect the service to launch towards the end of next month. As

development work nears completion, we will provide launch updates on our

homepage: http://austote.betfair.com.au/

3. How will Betfair customers go about placing bets on Tote Tasmania’s

products?

Customers will log in to Betfair and navigate to a page on the Betfair site that offers

a live interface to a specially-developed Tote Tasmania interface. From there, they

will be able to place bets using funds held in their Betfair account.

4. Will customers receive the Tote Tasmania (SuperTAB) dividends?

Yes. The dividends customers receive will be the same as those that would have

been received had the bet been placed directly with Tote Tasmania or any of the

other SuperTAB operators.

5. Will Betfair charge commission on customers’ winnings on bets placed on

Tote Tasmania products?

No.

6. Do customers have to open up a new account to bet on Tote products?

No. Customers will be able to bet on the Tote products if they have already satisfied

Betfair’s account-opening requirements, including relevant age and identity

verification processes (e.g. the 100-point check).

7. Why does Betfair want to offer Tote/TAB products to its customers?

We have always maintained that our betting exchange was complementary to the

products offered by the Tote/TABs. This arrangement helps us move towards being

a ”one stop shop” for internet wagering. We think the convenience of being able to

bet on the full suite of Tote and exchange products from a single account will be

attractive to many of our racing customers.

8. Does this mean Betfair now has a tote/TAB licence?

No. Betfair does not require a tote/TAB licence because it is not operating its own

tote/TAB. It is simply acting as an agent for Tote Tasmania to help distribute the

Tote’s existing products.

9. How many customers does Betfair have?

Betfair has more than 1.1 million active customers worldwide. Approximately 15,000

of those customers are in Australia.

10. How will this deal help the racing industry?

Whenever any of our customers – whether they live in Australia or overseas – bet on

Tote Tasmania’s products, revenue will be generated for Tote Tasmania to help

support the racing industry.

11. How are taxes and returns to the industry (e.g. product fees) calculated on revenue generated through Betfair’s customers betting on Tote Tasmania’s

products?

For the purposes of calculating taxes and product fees to the industry, revenue

generated through the arrangement is treated in exactly the same way as if the bets

were placed directly with Tote Tasmania.

12. Will Betfair make any money out of this arrangement?

Yes. Betfair will receive a share of net revenue for acting as Tote Tasmania’s agent.

The commercial details of the arrangement are confidential.

13. Will Betfair be promoting the Tote’s products to its overseas customers?

Yes. Betfair already promotes Australian racing to its overseas customers.

Approximately 25% of all customers betting on Australian racing are from overseas.

Tasmania is the only jurisdiction in Australia whose licensed wagering operators

(such as Betfair) are able to advertise in the UK.

14. Is the agreement exclusive?

From Betfair’s perspective the agency agreement is exclusive insofar as other

Australian participants in the SuperTAB pool are concerned. However, there is

nothing stopping Betfair entering into similar agreements with operators of other

TAB pools here and overseas. For example, Betfair already has a similar agreement

in place with the UK Tote.

15. Does the agreement allow Tote Tasmania to offer Betfair markets on its

site?

No. The agreement relates solely to Betfair acting as the Tote’s agent for the

purpose of helping to distribute the Tote’s products.

16. Is it legal for people to bet with Betfair (on either the exchange or the

Tote products) throughout Australia?

Yes. Punters in every State of Australia are legally permitted to bet with Betfair on

both its exchange products and any Tote products it offers on Tote Tasmania’s

behalf.

17. Does this agreement mean that Betfair is losing interest in its betting

exchange in Australia?

Definitely not. We have always said that our betting exchange complements the

products offered by the Tote/TABs and this agreement represents our faith in that

proposition. Betfair’s betting exchange is currently growing at approximately 30% -

even without the ability to advertise throughout mainland Australia. We see this

arrangement as a step towards our aim of offering a full suite of wagering products

to our customers through a more convenient and robust technical interface.

18. What gaps will the arrangement fill in Betfair’s existing product offering?

The arrangement will mean that our customers can bet on exotic products (e.g.

trifectas and quinellas) from their existing Betfair accounts. Betfair’s exchange isn’t

really suited to offering exotic products so this meets an existing customer need that

we aren’t equipped to address through the exchange. In addition, it will put our

customers in a better position to place their win/place bets through the exchange or

the Tote – depending on where they see the opportunity.

19. What products offered by Tote Tasmania will be available to Betfair

customers?

a. Win and Place

b. Quinellas

c. Exactas

d. Trifectas

e. Doubles

f. Quadrellas

20. Who is bearing the costs associated with the arrangement?

The cost associated with development of the interface and its promotion to

customers is being borne by Betfair. The arrangement carries no financial risk to

Tote Tasmania.

21. Is the agency arrangement a step towards Betfair acquiring Tote

Tasmania?

No. As far as we know, Tote Tasmania isn’t for sale.

22. Does this agreement represent a step towards Betfair looking to bid for

the wagering licence in Victoria?

No. Betfair currently has no plans to bid for the Victorian wagering licence.

23. Does Betfair need separate approval from interstate racing bodies to offer

Tote bets on their races?

No. Betfair is simply acting as a distribution agent of Tote Tasmania. To the extent

Tote Tasmania has approval to offer bets on certain races, Betfair is also able to

facilitate bets on relevant Tote markets.

24. Will racing stewards and regulators have access to details of bets placed

through the Betfair Tote interface?

Yes.

25. Will bets placed on Tote products affect commission paid on exchange

bets?

No. Bets placed on Tote products will be quarantined from a commission

perspective. That is, customers will not pay commission on winning Tote bets but

any losing Tote bets will not be used to offset winning bets on corresponding

exchange markets.

26. Will bets placed on Tote products accrue Betfair Points?

Yes. Details will be advised to customers prior to launch.

April 7, 2008

Betfair Basics

1. Betfair is the world’s leading betting exchange. It is headquartered in London

(where it was founded in June 2000) and, since February 2006, has operated its

second global exchange hub from Tasmania, where it is also licensed.

2. Betfair now employs more than 1,500 people worldwide, 100 of whom are in

Australia (mostly based in Hobart, Tasmania).

3. Betfair’s Australian operations are a 50:50 joint venture between Betfair UK (a

privately held group of companies) and Crown Limited (listed on the ASX). The board

of directors comprises: Edward Wray (co-founder and group chairman), Greg

Nichols, Geoff Kleeman and Anthony Klok (CEO).

4. Betfair has over 1.1 million active customers worldwide. The group now processes

more than 15 million bets a day at peak times in the racing and sporting calendar.

5. Tasmania is the only jurisdiction in Australia that has been approved by the UK

government for the purpose of its licensed wagering operators (including Betfair)

advertising in the UK. Because Betfair pays product fees on Australian racing events

to the industry (and has similar arrangements with the major professional sporting

bodies in Australia), this represents a key opportunity for Australian racing and

sporting codes to directly benefit from overseas customers betting on their events.

6. A betting exchange is a relatively new way for punters to wager on racing and

sporting events. Traditionally, wagering was limited to bookmakers and TABs. The

betting exchange relies on leading-edge technology to create a virtual market place

for punters where they effectively bet amongst themselves on markets set and

administered by Betfair. It operates in a similar way to the stock exchange.

7. Betfair is almost exclusively an online operator (around 3% of bets are taken over

the phone) and its racing markets are generally limited to win and place. Betfair

does not have retail operations (which account for between 75-85% of all TAB sales)

and does not offer exotic markets (which account for around 30-35% of TAB sales).

8. It is legal for Betfair to operate throughout Australia. This means that Betfair can

take bets from customers in every State and Territory.

Thursday 27th March

High Court Upholds Betfair’s Claim

In a judgement handed down this morning, the High Court of Australia has struck down the anti-betting exchange laws enacted by the Western Australian government in late 2006.

The laws operated to prevent people in Western Australia from using a licensed betting exchange.  They also operated to prevent a licensed betting exchange from offering markets on Western Australian races.

In a unanimous decision, the Court declared that the laws were invalid because they contravened section 92 of the Commonwealth Constitution – the provision that guarantees free trade across State boundaries.

The decision means that people in Western Australia can immediately resume betting with Betfair, Australia’s only licensed betting exchange.  It also enables Betfair to immediately resume offering markets on Western Australian races.

Betfair’s CEO, Anthony Klok, said, “We’re very pleased with the result and we’re sure our customers will be delighted.  Apart from the lifting of an unfair commercial restraint on our business, it opens the door for us to establish a formal relationship with the Western Australian racing industry.”

Betfair issued the current proceedings in the High Court’s original jurisdiction (i.e. without going through the lower courts) on 29 January 2007.  Every State and the Commonwealth intervened in the proceedings.  The hearing lasted for 3½ days.  There is no avenue for appealing the High Court’s decision.

Mr Klok said that Betfair had approximately 1,600 registered customers in Western Australia. “These customers have been prevented from transacting with Betfair since the laws took effect,” he said. “We look forward to welcoming these customers – and many more West Australians – back to Betfair.”