UK exchange betting specialists Betfair expect full year results to be lagging behind the previous year as the company’s sluggish performance continued through the first half of the year. Group revenue grew just 5 percent to £200.6million with various regulatory problems meaning the firm’s underlying operating profit dropped by 25 percent to £19.6million. The group expects the uncertainty to continue for the rest of the year with the “ongoing impact” of regulation costing them £3.5million every month.
Sports continued their strong performance with revenue up 8 percent in the period with football revenue, driven by Euro 2012 and a higher number of lower-league fixtures, increasing by 15 percent. Mobile continued its triple-figure growth with a 108 percent increase in revenue to £18.1million as 50 percent of UK and Irish customers used a mobile to place a bet. Over 20 percent of casino customers now use mobile as well. Games revenue wasn’t so lucky as it dropped by 2 percent after being “significantly affected by regulation” and poker revenue took a hit with revenue down 11 percent.
The performance has led them to identify various parts of the business that need looking at. They will try to reinvigorate the business by focusing on regulated jurisdictions to “increase sustainability of revenues” whilst at the same time making sure to “invest in product and brand to enhance our competitive position and drive growth”. The group will also “introduce greater accountability and become a leaner and more dynamic business”. To that end they’ve identified circa £20million worth of savings already and CEO Breon Corcoran commented that he is “excited to be leading Betfair through this change.” The first savings will involve ceasing investment in financial trading firm LMAX and social gaming business Kabam.
All of the doom and gloom means that drowning ones sorrows will be at the top of the agenda when the full year results come out in April. The company expects these to be lower than the previous year with group revenue estimated to fall between £370million and £385million and underlying EBITDA between £65m and £70m. Luckily for Betfair the market doesn’t seem too fussed by the results and their share price rose this morning by 1.18 percent to 773p. Every cloud.
Showing posts with label Betfair. Show all posts
Showing posts with label Betfair. Show all posts
December 14, 2012
July 31, 2012
Betfair gets snookered
Betfair, has signed a deal to sponsor the World Snooker’s new European Tour this season.
The European Tour is a series of six events over the next few months, capitalising on the sport’s burgeoning popularity across the continent. It will be known as the Betfair European Tour with each event broadcast on Eurosport.
The six events, which form part of the Players Tour Championship series, are:
- Paul Hunter Classic, Furth, Germany August 23-26
- Gydnia Open, Gdynia, Poland, October 5-7
- Belgian Open, Antwerp, Belgium, October 19-21
- Bulgarian Open, Sofia, Bulgaria, November 16-18
- Scottish Open, Ravenscraig, Scotland, December 14-16
- Munich Open, Munich, Germany, January 4-6
World Snooker Chairman Barry Hearn said: “We are delighted to bring in Betfair as the sponsor of the European Tour. Just like us, they are targeting emerging markets in many areas of Europe, and this tour will provide tremendous exposure for their brand.
“Each of these events will receive extensive television coverage from Eurosport and the viewing figures are phenomenal. We are extremely excited about the potential snooker has on the continent in the coming years. These events will attract the best professionals and amateurs, providing great opportunities for the players. And for the passionate fans in places like Bulgaria and Poland it’s a chance to see the world’s leading stars compete.”
Matt Robinson, International Director at Betfair, said: “We are delighted to add World Snooker’s new European Tour to our sponsorship portfolio. The tour visits some key European markets so it’s a great way to raise awareness for our brand. We’re excited to support a game which attracts fans both old and new.”
The European Tour is a series of six events over the next few months, capitalising on the sport’s burgeoning popularity across the continent. It will be known as the Betfair European Tour with each event broadcast on Eurosport.
The six events, which form part of the Players Tour Championship series, are:
- Paul Hunter Classic, Furth, Germany August 23-26
- Gydnia Open, Gdynia, Poland, October 5-7
- Belgian Open, Antwerp, Belgium, October 19-21
- Bulgarian Open, Sofia, Bulgaria, November 16-18
- Scottish Open, Ravenscraig, Scotland, December 14-16
- Munich Open, Munich, Germany, January 4-6
World Snooker Chairman Barry Hearn said: “We are delighted to bring in Betfair as the sponsor of the European Tour. Just like us, they are targeting emerging markets in many areas of Europe, and this tour will provide tremendous exposure for their brand.
“Each of these events will receive extensive television coverage from Eurosport and the viewing figures are phenomenal. We are extremely excited about the potential snooker has on the continent in the coming years. These events will attract the best professionals and amateurs, providing great opportunities for the players. And for the passionate fans in places like Bulgaria and Poland it’s a chance to see the world’s leading stars compete.”
Matt Robinson, International Director at Betfair, said: “We are delighted to add World Snooker’s new European Tour to our sponsorship portfolio. The tour visits some key European markets so it’s a great way to raise awareness for our brand. We’re excited to support a game which attracts fans both old and new.”
July 29, 2012
Betfair create Olympic market without winner
I’ve been interested in what the Olympics couldn’t bring on the trading front for Bet Angel users. Athletics markets are pretty quiet in general, but are often full of surprises. Nothing is guaranteed in sport, especially where markets are tricky to price.
I watched the Men’s Cycling race today with half a eye on whether Mark Cavendish was to get his just reward, alas it was not to be. As the competitors re-entered the streets of London I started collecting data and scanning the markets to judge what would have been a useful trading position. Curiously I couldn’t find one of the two leaders and wondered if I had just completely failed to interpret the action correctly, or mis-heard the commentator. I made a few notes and returned to the horse racing markets. When I returned to the Cycling there was the leader in the market but traded only at very short odds, hardly any competitors had been. I thought I was going mad!
As it turns out there were 144 competitiors at the start of the race but Betfair had only formed a market around 143. Incredibly the only one they left off won the race! To profit you just needed to lay anything in the market. When Betfair added the runner late on, you would have mysteriously created a profit at every backers expense. An interesting start to the Olympics!
Betfair later issued a clarifying statement: -
“We created the Men’s Olympics Cycling Road Race market on 20th July from the official London 2012 website, which at that point did not show Alexandre Vinokourov as a listed competitor. The market remained ‘incomplete’ allowing us to add any further runners on request. We did not receive any requests for Vinokourov to be added, but when it became apparent that he was in a two-man breakaway group towards the latter stages of the race, we added him into the market (approximately 5km from the finish).”
I watched the Men’s Cycling race today with half a eye on whether Mark Cavendish was to get his just reward, alas it was not to be. As the competitors re-entered the streets of London I started collecting data and scanning the markets to judge what would have been a useful trading position. Curiously I couldn’t find one of the two leaders and wondered if I had just completely failed to interpret the action correctly, or mis-heard the commentator. I made a few notes and returned to the horse racing markets. When I returned to the Cycling there was the leader in the market but traded only at very short odds, hardly any competitors had been. I thought I was going mad!
As it turns out there were 144 competitiors at the start of the race but Betfair had only formed a market around 143. Incredibly the only one they left off won the race! To profit you just needed to lay anything in the market. When Betfair added the runner late on, you would have mysteriously created a profit at every backers expense. An interesting start to the Olympics!
Betfair later issued a clarifying statement: -
“We created the Men’s Olympics Cycling Road Race market on 20th July from the official London 2012 website, which at that point did not show Alexandre Vinokourov as a listed competitor. The market remained ‘incomplete’ allowing us to add any further runners on request. We did not receive any requests for Vinokourov to be added, but when it became apparent that he was in a two-man breakaway group towards the latter stages of the race, we added him into the market (approximately 5km from the finish).”
July 19, 2012
Betfair to sponsor Bayer Leverkusen
The British betting exchange Betfair has become the official sponsor of one of the best football teams in the German Bundesliga - Bayer Leverkusen.
The betting exchange is famous for its cooperation with many sports teams such as Barcelona and Manchester. It's time for another giant of European football. A two-year sponsorship contract with a possible extension for another year has been recently signed. According to the terms of the agreement Betfair will be able to advertise its logo at BayArena, the main stadium of the club. Moreover, Bayer will participate in a variety of marketing promotions of the betting exchange.
Before signing a cooperation agreement with Betfair, Bayer Leverkusen had concluded a contract with the Maltese bookmaker Bet3000. According to the representatives of the German club, Rudi Voller, Bayer sporting director and former successful player and coach, will become a representative of the Betfair brand. Both parties look forward to the fruitful cooperation, which will bring many benefits.
The betting exchange is famous for its cooperation with many sports teams such as Barcelona and Manchester. It's time for another giant of European football. A two-year sponsorship contract with a possible extension for another year has been recently signed. According to the terms of the agreement Betfair will be able to advertise its logo at BayArena, the main stadium of the club. Moreover, Bayer will participate in a variety of marketing promotions of the betting exchange.
Before signing a cooperation agreement with Betfair, Bayer Leverkusen had concluded a contract with the Maltese bookmaker Bet3000. According to the representatives of the German club, Rudi Voller, Bayer sporting director and former successful player and coach, will become a representative of the Betfair brand. Both parties look forward to the fruitful cooperation, which will bring many benefits.
July 09, 2012
Betfair drops 4.5% as Cyprus announces restrictions on online betting
Betting exchange group faces unexpected blow from new laws to limit gambling.
The beleaguered eurozone state said it would restrict online casino and poker as well as exchange betting. Betfair said Cyprus contributed around 4% of group revenues last year, and around £9m of profit. Its shares have lost 34p to 722p on the news, but it is taking advice on the legality of the move. It said:
The company believes the legislation contains serious flaws and, in certain areas, is inconsistent with European Union law.
Betfair...will be taking all necessary steps to reduce the impact on profitability through both legal action and cost management.
Analyst Michael Campbell at broker Daniel Stewart said he believed Cyprus also planned to introduce a new betting tax of 13% of gross profits.
This is another blow to Betfair's exchange betting business. The stock trades on around 6.6 times 2012 consensus EBITDA which appears reasonably priced, though our biggest concern remains whether other markets will, like Cyprus, ban exchange betting which will hamper the business's ability to grow outside of its core UK market.
Karl Burns at Shore Capital said full year forecasts were likely to be reduced after the news:
We retain our hold recommendation, highlighting that whilst we believe the exchange is a unique and highly cash generative business model, in addition to reporting strong underlying revenue growth recently, we continue to harbour concerns over the pace of exchange regulation in Europe, with Europe around 40% of group revenue, whilst comparatives will toughen through the year.
Overall markets have begun the week on a downbeat note, on renewed worries about the eurozone as Spain's 10 year bond yields climb above 10% again, ahead of the latest EU finance ministers meeting. The FTSE 100 is currently down 23.49 points at 5639.14.
Banks are mixed, with Barclays down 0.85p at 163.9p as the libor fixing scandal continues to cast a shadow over the group. But Royal Bank of Scotland has risen 1.1p to 202.6p as analysts at, yes, Barclays issued an overweight rating although they cut their price target from 340p to 270p.
Elsewhere the profit warning from JJB Sports, down nearly 30% at 7p, which blamed the weather and poor sales of Euro 2012 replica kits has helped push the rest of the sector lower. JD Sports is down 28p at 712p while Mike Ashley's Sports Direct International has dropped 1.8p to 308.2p. But Jonathan Pritchard at Oriel Securities remained positive on Ashley's business:
We do not think that the trends should be read across to Sports Direct - indeed that company's actions have caused JJB's problems.
Sports Direct has been aggressive in terms of replica kit pricing and stated as soon as Dick's arrived [to invest in JJB] that it would up the ante on price.
The beleaguered eurozone state said it would restrict online casino and poker as well as exchange betting. Betfair said Cyprus contributed around 4% of group revenues last year, and around £9m of profit. Its shares have lost 34p to 722p on the news, but it is taking advice on the legality of the move. It said:
The company believes the legislation contains serious flaws and, in certain areas, is inconsistent with European Union law.
Betfair...will be taking all necessary steps to reduce the impact on profitability through both legal action and cost management.
Analyst Michael Campbell at broker Daniel Stewart said he believed Cyprus also planned to introduce a new betting tax of 13% of gross profits.
This is another blow to Betfair's exchange betting business. The stock trades on around 6.6 times 2012 consensus EBITDA which appears reasonably priced, though our biggest concern remains whether other markets will, like Cyprus, ban exchange betting which will hamper the business's ability to grow outside of its core UK market.
Karl Burns at Shore Capital said full year forecasts were likely to be reduced after the news:
We retain our hold recommendation, highlighting that whilst we believe the exchange is a unique and highly cash generative business model, in addition to reporting strong underlying revenue growth recently, we continue to harbour concerns over the pace of exchange regulation in Europe, with Europe around 40% of group revenue, whilst comparatives will toughen through the year.
Overall markets have begun the week on a downbeat note, on renewed worries about the eurozone as Spain's 10 year bond yields climb above 10% again, ahead of the latest EU finance ministers meeting. The FTSE 100 is currently down 23.49 points at 5639.14.
Banks are mixed, with Barclays down 0.85p at 163.9p as the libor fixing scandal continues to cast a shadow over the group. But Royal Bank of Scotland has risen 1.1p to 202.6p as analysts at, yes, Barclays issued an overweight rating although they cut their price target from 340p to 270p.
Elsewhere the profit warning from JJB Sports, down nearly 30% at 7p, which blamed the weather and poor sales of Euro 2012 replica kits has helped push the rest of the sector lower. JD Sports is down 28p at 712p while Mike Ashley's Sports Direct International has dropped 1.8p to 308.2p. But Jonathan Pritchard at Oriel Securities remained positive on Ashley's business:
We do not think that the trends should be read across to Sports Direct - indeed that company's actions have caused JJB's problems.
Sports Direct has been aggressive in terms of replica kit pricing and stated as soon as Dick's arrived [to invest in JJB] that it would up the ante on price.
May 21, 2012
Betfair to launch fixed-odds betting website
Betfair is set to launch a new fixed-odds betting website to compete traditional bookies, The Telegraph newspaper reported Sunday. Nick Hagen, Betfair’s sports operations director, said: “We know from our own research that we lose 30pc of our customers’ sports betting wallet to the competition. Why should customers have to go elsewhere and why would we willingly let this large chunk of business walk out the door?”
David Loveday, OpenBet’s chief executive, said: “We think this will help Betfair penetrate new markets. There are certain markets that don’t really know what an exchange is. Offering fixed-odds will give them a way in.” Ivor Jones, an analyst at Numis, said Betfair’s new service would “dramatically expand the range of bets available”.
The new site will apparently be ready for action in time for the Euro 2012 football championship, & will widen the internet betting company’s offering into an area where it perceived itself to be at a disadvantage.
David Loveday, OpenBet’s chief executive, said: “We think this will help Betfair penetrate new markets. There are certain markets that don’t really know what an exchange is. Offering fixed-odds will give them a way in.” Ivor Jones, an analyst at Numis, said Betfair’s new service would “dramatically expand the range of bets available”.
The new site will apparently be ready for action in time for the Euro 2012 football championship, & will widen the internet betting company’s offering into an area where it perceived itself to be at a disadvantage.
May 11, 2012
Belgium Adds To Online Poker Blacklist
The Belgium Gaming Commission has expanded its blacklist of companies which internet service providers in the country must block.
New additions to the list include bwin.com, betsson.com, bet-at-home.com, betclic.com, williamhill.com, stanjames.com, and betfair.com, all of which offer online poker.
These companies join the likes of 888.com, titanpoker.be, winamax.fr and everestpoker.be.
Belgian authorities claim the blacklist offer opportunities to legitimate operators who apply for licences while protecting players from ‘illegal’ sites which operate without a licence in the country.
New additions to the list include bwin.com, betsson.com, bet-at-home.com, betclic.com, williamhill.com, stanjames.com, and betfair.com, all of which offer online poker.
These companies join the likes of 888.com, titanpoker.be, winamax.fr and everestpoker.be.
Belgian authorities claim the blacklist offer opportunities to legitimate operators who apply for licences while protecting players from ‘illegal’ sites which operate without a licence in the country.
May 03, 2012
Schleswig-Holstein issues online sports betting licences
The German state of Schleswig-Holstein has issued its first three online sports betting licences to online betting exchange Betfair, JAXX subsidiary myBet, and state lottery operator NordwestLotto, with licences for casino and poker expected to be issued later this year in summer.
“Stringent requirements ensure that only serious and commercially viable enterprises are allowed in the market,” said Klaus Schlie, Schleswig-Holstein’s Interior Minister.
Schlie said that operators wishing for a licence will have to produce extensive documentation to prove economic efficiency and transparency, as well as procedures to secure payment processing, combat money laundering and prevent fraud.
The Minister added that a collaboration between gambling providers and sporting associations was “desirable”.
“The sports federations have to do everything in their power to ensure that sporting events take place without manipulation,” said Schlie.
He confirmed that there were 23 remaining licence applications from sports betting operators, as well as 14 applications for casino and poker licences. Further licences will be granted in the coming weeks, according to Schlie.
In a statement to the London Stock Exchange this morning, Betfair said that following the receipt of its licence to operate its betting exchange, the company intends to pay 20 per cent of gross gaming revenues derived from Germany to Schleswig Holstein.
Based on current revenue run-rates, Betfair envisages that this payment will reduce Core Betfair's gross margin by approximately one per cent.
“We are delighted to have been awarded one of the first three licences to operate in Schleswig Holstein,” said Betfair's chief legal and regulatory affairs officer, Martin Cruddace. “We look forward to making a significant and sustainable contribution to the newly formed market there, offering consumers innovative products in a safe and responsible betting environment.
“Schleswig Holstein's government should be applauded for its efforts to implement a regulatory regime that will provide security for consumers, transparency for regulators and the freedom to compete for EU operators."
The German state also issued a sports betting licence to PEI Ltd, which is part of the Schleswig Holstein-based JAXX SE Group. The licences will come into immediate effect and will expire on April 30th 2018.
In a statement released this morning, JAXX said that it will now be able to launch its myBet.de website, offering customers sports betting and live betting on sports such as football, tennis, handball among others.
“Bearing in mind that we are based in Schleswig-Holstein, we are of course proud to have been granted one of the first Schleswig-Holstein sports betting licences,” said Mathias Dahms, management board spokesman for JAXX. “The permit for myBet is a document of historic importance because it represents a trailblazing approach to the regulation of the gaming industry.
“The regulatory authorities in Kiel conducted an exhaustive and very demanding examination that in certain respects exceeded the standards applied in other European countries. But Schleswig-Holstein is the only German state to have understood how to go about drafting legislation that complies with both European and constitutional law and takes account of the interests of players, providers and the state in equal measure.
“The draft State Treaty of the other 15 federal states is clearly a shabby compromise that has lost its way in a bureaucratic jungle at federal level. The opposition in the Kiel state parliament, too, will now discover that having its own gaming law is good for the state, and good for its finances.”
JAXX confirmed that myBet had also applied for an online casino and poker licence, but because of the large number of applicants and the exhaustive examination process, Schleswig-Holstein’s Ministry of the Interior has indicated that these licences are likely be issued later this year in summer.
“Stringent requirements ensure that only serious and commercially viable enterprises are allowed in the market,” said Klaus Schlie, Schleswig-Holstein’s Interior Minister.
Schlie said that operators wishing for a licence will have to produce extensive documentation to prove economic efficiency and transparency, as well as procedures to secure payment processing, combat money laundering and prevent fraud.
The Minister added that a collaboration between gambling providers and sporting associations was “desirable”.
“The sports federations have to do everything in their power to ensure that sporting events take place without manipulation,” said Schlie.
He confirmed that there were 23 remaining licence applications from sports betting operators, as well as 14 applications for casino and poker licences. Further licences will be granted in the coming weeks, according to Schlie.
In a statement to the London Stock Exchange this morning, Betfair said that following the receipt of its licence to operate its betting exchange, the company intends to pay 20 per cent of gross gaming revenues derived from Germany to Schleswig Holstein.
Based on current revenue run-rates, Betfair envisages that this payment will reduce Core Betfair's gross margin by approximately one per cent.
“We are delighted to have been awarded one of the first three licences to operate in Schleswig Holstein,” said Betfair's chief legal and regulatory affairs officer, Martin Cruddace. “We look forward to making a significant and sustainable contribution to the newly formed market there, offering consumers innovative products in a safe and responsible betting environment.
“Schleswig Holstein's government should be applauded for its efforts to implement a regulatory regime that will provide security for consumers, transparency for regulators and the freedom to compete for EU operators."
The German state also issued a sports betting licence to PEI Ltd, which is part of the Schleswig Holstein-based JAXX SE Group. The licences will come into immediate effect and will expire on April 30th 2018.
In a statement released this morning, JAXX said that it will now be able to launch its myBet.de website, offering customers sports betting and live betting on sports such as football, tennis, handball among others.
“Bearing in mind that we are based in Schleswig-Holstein, we are of course proud to have been granted one of the first Schleswig-Holstein sports betting licences,” said Mathias Dahms, management board spokesman for JAXX. “The permit for myBet is a document of historic importance because it represents a trailblazing approach to the regulation of the gaming industry.
“The regulatory authorities in Kiel conducted an exhaustive and very demanding examination that in certain respects exceeded the standards applied in other European countries. But Schleswig-Holstein is the only German state to have understood how to go about drafting legislation that complies with both European and constitutional law and takes account of the interests of players, providers and the state in equal measure.
“The draft State Treaty of the other 15 federal states is clearly a shabby compromise that has lost its way in a bureaucratic jungle at federal level. The opposition in the Kiel state parliament, too, will now discover that having its own gaming law is good for the state, and good for its finances.”
JAXX confirmed that myBet had also applied for an online casino and poker licence, but because of the large number of applicants and the exhaustive examination process, Schleswig-Holstein’s Ministry of the Interior has indicated that these licences are likely be issued later this year in summer.
March 25, 2012
Online betting exchange Betfair to launch as a bookmaker
Online betting exchange Betfair is to launch itself as a bookmaker in a move designed to prevent customers deserting to rivals such as William Hill and Ladbrokes.
Interim chief executive Stephen Morana said the company would shortly be introducing its own fixed-odds sports book, which means it will start taking bets of its own rather than just acting as a marketplace where customers offer bets to each other.
‘Our sports exchange always has been – and always will be – Betfair’s core product,’ said Morana. ‘It has revolutionised the industry and we have a loyal customer base, but we also recognise that there are certain bets at certain times that the exchange, by its nature, cannot offer.
‘Some of our customers are going to traditional bookies for a portion of their betting and we hope to address this with the introduction of an integrated risk product that will complement the exchange, not compete with it.’
Betting exchanges work by having customers offering odds to each other and accepting each other’s bets. But customers who want to get early prices on a race or bet while a match or race is under way might find it hard to find someone to take their bet.
Now Betfair will be taking on the risk itself. Betfair has yet to decide on a name for the bookmaking business.
The company will be hoping that the move changes its fortunes as it has been going through tough times. It was seen as one of the worst flotations in recent years, listing at £13 a share in October 2010, but falling steadily ever since to close at 871p on Friday.
Chief executive David Yu and chairman Ed Wray have both since left the company, which earlier this year was forced to cancel millions of pounds in bets due to a ‘technical failure’.
Some analysts are positive about Betfair’s move into bookmaking. Ivor Jones of investment bankers Numis said that while the result of putting a betting exchange and a fixed-odds sports book together was ‘uncertain’, he believed it had ‘the potential to increase profits by over 50 per cent’.
Betfair currently has four million registered users, of whom 900,000 gamble regularly. In the year to last April, it made pre-tax profits of £26.6million on turnover of £368.6million.
Interim chief executive Stephen Morana said the company would shortly be introducing its own fixed-odds sports book, which means it will start taking bets of its own rather than just acting as a marketplace where customers offer bets to each other.
‘Our sports exchange always has been – and always will be – Betfair’s core product,’ said Morana. ‘It has revolutionised the industry and we have a loyal customer base, but we also recognise that there are certain bets at certain times that the exchange, by its nature, cannot offer.
‘Some of our customers are going to traditional bookies for a portion of their betting and we hope to address this with the introduction of an integrated risk product that will complement the exchange, not compete with it.’
Betting exchanges work by having customers offering odds to each other and accepting each other’s bets. But customers who want to get early prices on a race or bet while a match or race is under way might find it hard to find someone to take their bet.
Now Betfair will be taking on the risk itself. Betfair has yet to decide on a name for the bookmaking business.
The company will be hoping that the move changes its fortunes as it has been going through tough times. It was seen as one of the worst flotations in recent years, listing at £13 a share in October 2010, but falling steadily ever since to close at 871p on Friday.
Chief executive David Yu and chairman Ed Wray have both since left the company, which earlier this year was forced to cancel millions of pounds in bets due to a ‘technical failure’.
Some analysts are positive about Betfair’s move into bookmaking. Ivor Jones of investment bankers Numis said that while the result of putting a betting exchange and a fixed-odds sports book together was ‘uncertain’, he believed it had ‘the potential to increase profits by over 50 per cent’.
Betfair currently has four million registered users, of whom 900,000 gamble regularly. In the year to last April, it made pre-tax profits of £26.6million on turnover of £368.6million.
March 19, 2012
Betfair secures naming rights deal for California racetrack
Betfair US, the Los Angeles-based subsidiary of leading online betting exchange Betfair, has entered into a five-year agreement with Hollywood Park Racing Association (HPRA), operator of the Hollywood Park Racetrack which has been renamed Betfair Hollywood Park.
The HPRA said the deal was a “groundbreaking agreement intended to transform the customer experience for racing fans at the historic venue, online and on television.”
The association claims that the renaming of its venue as Betfair Hollywood Park marks the first naming rights agreement ever for a horseracing venue in the United States.
“We realize that US racing, and California racing in particular, simply cannot continue on as it has,” said Jack Liebau, president of Hollywood Park Racing Association. “We need to look at the way we do everything in presenting our product to the public and not be afraid to embrace change, particularly if we are going to generate a younger fan base.”
Subject to Hollywood Park receiving assurances regarding its racing dates for 2013, Betfair will also make significant infrastructure investments and improvements at the Hollywood Park facility to create the Betfair Club and Betfair Lounge, which will offer customers modern surroundings and access to state-of-the-art technologies to interact with the racing product.
Betfair said that this will build on the success of its innovative Betfair Lounge at Ascot Racecourse in the UK. The company said that it will utilise its own marketing initiatives to drive younger demographics to the racing venue and monetise them, supported by traditional marketing campaigns on TVG and in the Los Angeles market.
“We are deeply committed to changing US horseracing for the better and are delighted to find a partner in Hollywood Park Racing Association willing to take the bold step of trying to change every facet of the racing experience to appeal to a broader, younger audience,” said Stephen Burn, CEO of Betfair US and TVG. “Horseracing is a wonderful sport, but it must embrace cultural change and utilize advancements in technology and presentation to survive and thrive just as other sports and entertainment industries have done.
“We hope this is the first of many examples of using the assets of technology companies, such as Betfair, to revitalise historic venues such as Betfair Hollywood Park.”
Betfair subsidiary TVG will produce the Betfair Hollywood Park simulcast signal and related TVG television programming, as well as introduce advanced graphics packages similar to those used in network broadcasts of major US sporting events to enhance the user experience and data available from the product.
“We believe that partnering with Betfair to modernise the product will benefit California racing,” continued Liebau. “Exchange wagering is another possibly transformative technological change for horseracing. However, it will only be introduced after a thorough consultation with our Horsemen and Horsewomen and, of course, its implementation is ultimately subject to the approval of the Thoroughbred Owners of California.”
The California Horse Racing Board is currently considering regulations that would make possible the implementation of exchange wagering on horseracing by California residents.
The HPRA said the deal was a “groundbreaking agreement intended to transform the customer experience for racing fans at the historic venue, online and on television.”
The association claims that the renaming of its venue as Betfair Hollywood Park marks the first naming rights agreement ever for a horseracing venue in the United States.
“We realize that US racing, and California racing in particular, simply cannot continue on as it has,” said Jack Liebau, president of Hollywood Park Racing Association. “We need to look at the way we do everything in presenting our product to the public and not be afraid to embrace change, particularly if we are going to generate a younger fan base.”
Subject to Hollywood Park receiving assurances regarding its racing dates for 2013, Betfair will also make significant infrastructure investments and improvements at the Hollywood Park facility to create the Betfair Club and Betfair Lounge, which will offer customers modern surroundings and access to state-of-the-art technologies to interact with the racing product.
Betfair said that this will build on the success of its innovative Betfair Lounge at Ascot Racecourse in the UK. The company said that it will utilise its own marketing initiatives to drive younger demographics to the racing venue and monetise them, supported by traditional marketing campaigns on TVG and in the Los Angeles market.
“We are deeply committed to changing US horseracing for the better and are delighted to find a partner in Hollywood Park Racing Association willing to take the bold step of trying to change every facet of the racing experience to appeal to a broader, younger audience,” said Stephen Burn, CEO of Betfair US and TVG. “Horseracing is a wonderful sport, but it must embrace cultural change and utilize advancements in technology and presentation to survive and thrive just as other sports and entertainment industries have done.
“We hope this is the first of many examples of using the assets of technology companies, such as Betfair, to revitalise historic venues such as Betfair Hollywood Park.”
Betfair subsidiary TVG will produce the Betfair Hollywood Park simulcast signal and related TVG television programming, as well as introduce advanced graphics packages similar to those used in network broadcasts of major US sporting events to enhance the user experience and data available from the product.
“We believe that partnering with Betfair to modernise the product will benefit California racing,” continued Liebau. “Exchange wagering is another possibly transformative technological change for horseracing. However, it will only be introduced after a thorough consultation with our Horsemen and Horsewomen and, of course, its implementation is ultimately subject to the approval of the Thoroughbred Owners of California.”
The California Horse Racing Board is currently considering regulations that would make possible the implementation of exchange wagering on horseracing by California residents.
March 06, 2012
Betfair launches new web tool as price war heats up
Betfair has launched a new web tool which enables customers to view its own prices and place bets on the company’s betting exchange while they are browsing the websites of its competitors.
Betfair Everywhere is a Google Chrome extension which uses keyword technology to overlay Betfair’s odds on the websites of its competition. The add-on will also allow customers to view Betfair odds and place bets while they are browsing other selected sports content websites.
“Betfair Everywhere is a cheeky, innovative, and powerful tool which we can now call upon to further reinforce our value proposition,” said Betfair’s group operations director, Ian Chuter. “We’re constantly looking at ways to make it easier for our customers to recognise the value we offer and then act upon it.
“The Everywhere tool is a simple yet ingenious use of technology that highlights our willingness to think differently when it comes to keeping one step ahead of the competition.”
Betfair Everywhere was conceptualised by a group of Betfair engineers during an internal ‘Fed-Ex Day’ held at the company’s tech centre in Cluj, Romania, in which participants had 24 hours to come up with new, innovative ideas and solutions for Betfair and its customers.
“Price comparison websites are now commonplace, as are “best priced guaranteed” claims made by competitors on their own marketing collateral,” said Chuter. “What we’ve not really seen before is the idea of one competitor using technology to provide customers with the option to view their prices while browsing the site of another. That is, until now.
“What we’re doing with Betfair Everywhere is bringing our unrivalled value message to customers at their alternative point of consumption and at the same time making it easier than ever for them to act on the information we’re giving them.”
The launch of the tool is the latest step in Betfair’s new marketing campaign, Don’t Settle for Less, which is running across the UK and Europe via multiple marketing channels including TV and online.
Betfair Everywhere is a Google Chrome extension which uses keyword technology to overlay Betfair’s odds on the websites of its competition. The add-on will also allow customers to view Betfair odds and place bets while they are browsing other selected sports content websites.
“Betfair Everywhere is a cheeky, innovative, and powerful tool which we can now call upon to further reinforce our value proposition,” said Betfair’s group operations director, Ian Chuter. “We’re constantly looking at ways to make it easier for our customers to recognise the value we offer and then act upon it.
“The Everywhere tool is a simple yet ingenious use of technology that highlights our willingness to think differently when it comes to keeping one step ahead of the competition.”
Betfair Everywhere was conceptualised by a group of Betfair engineers during an internal ‘Fed-Ex Day’ held at the company’s tech centre in Cluj, Romania, in which participants had 24 hours to come up with new, innovative ideas and solutions for Betfair and its customers.
“Price comparison websites are now commonplace, as are “best priced guaranteed” claims made by competitors on their own marketing collateral,” said Chuter. “What we’ve not really seen before is the idea of one competitor using technology to provide customers with the option to view their prices while browsing the site of another. That is, until now.
“What we’re doing with Betfair Everywhere is bringing our unrivalled value message to customers at their alternative point of consumption and at the same time making it easier than ever for them to act on the information we’re giving them.”
The launch of the tool is the latest step in Betfair’s new marketing campaign, Don’t Settle for Less, which is running across the UK and Europe via multiple marketing channels including TV and online.
December 28, 2011
Betfair face backlash as punters miss out on millions after in-play betting error
Betfair face a backlash from punters after the bookmakers declared all bets are void following an incredible in-play betting error.
The gambling firm faced an unprecedented multi-million pay-out after odds of 28-1 were offered in-play on a runaway 13-8 favourite at Leopardstown.
There were bizarre scenes in the in-running betting world with a freakish amount traded on Betfair in the 2pm woodiesdiy.com Christmas Hurdle.
A total of £1,642,094 was matched at 28-1 on Voler La Vedette, who went off the 13-8 favourite on-course and won very easily.
Even more strangely, the Betfair graph showed over £21million was offered to back Colm Murphy's mare at those odds, even though she was always in contention and looked the obvious winner even before the final flight.
This meant one layer could potentially have lost £600million in only a few minutes if all of the money had been matched.
Betfair suspended the market in order to investigate, with many of the exchange's members in a state of shock on the website's forum.
After lengthy discussions, it was revealed this was due to a technical error, and that all bets on the event would be cancelled.
A statement from Betfair customer services read: 'Customers betting in-play on this race will have seen that Voler La Vedette was available to back at 29 when the in-running market was suspended, and that a considerable sum was matched on the clear winner at that price.
'An investigation has revealed that this was due to an obvious technical failure which allowed a customer to exceed their exposure limit.
'In accordance with our terms and conditions, all in running bets on this race, both win and place, will be made void.
'We fully appreciate the dissatisfaction this will cause many customers, and apologise for a very poor customer and betting experience.'
The gambling firm faced an unprecedented multi-million pay-out after odds of 28-1 were offered in-play on a runaway 13-8 favourite at Leopardstown.
There were bizarre scenes in the in-running betting world with a freakish amount traded on Betfair in the 2pm woodiesdiy.com Christmas Hurdle.
A total of £1,642,094 was matched at 28-1 on Voler La Vedette, who went off the 13-8 favourite on-course and won very easily.
Even more strangely, the Betfair graph showed over £21million was offered to back Colm Murphy's mare at those odds, even though she was always in contention and looked the obvious winner even before the final flight.
This meant one layer could potentially have lost £600million in only a few minutes if all of the money had been matched.
Betfair suspended the market in order to investigate, with many of the exchange's members in a state of shock on the website's forum.
After lengthy discussions, it was revealed this was due to a technical error, and that all bets on the event would be cancelled.
A statement from Betfair customer services read: 'Customers betting in-play on this race will have seen that Voler La Vedette was available to back at 29 when the in-running market was suspended, and that a considerable sum was matched on the clear winner at that price.
'An investigation has revealed that this was due to an obvious technical failure which allowed a customer to exceed their exposure limit.
'In accordance with our terms and conditions, all in running bets on this race, both win and place, will be made void.
'We fully appreciate the dissatisfaction this will cause many customers, and apologise for a very poor customer and betting experience.'
December 15, 2011
Betfair gambles on faster website to challenge rivals
The company, whose shares have tanked since last year's £13-a-share float, showed signs of improvement yesterday as it unveiled a maiden 3.2p interim dividend and confirmed the earlier than expected exit of chief executive David Yu, who is stepping down at the year end.
He is handing over on an interim basis to finance director Stephen Morana, who will hold the reins until August's arrival of Breon Corcoran from rival Paddy Power.
"Once that appointment was made I became a lame duck. It's better to have clarity," said Mr Yu, who will still have his £515,000-a-year contract paid up to October next year.
Asked if he should not have waived that given the performance of the shares, Mr Yu said: "We have a contract in place. We will respect that."
He has already been criticised for the 125pc rise in his total pay last year to £824,676, though that was boosted by a short-term incentive plan.
Mr Yu is bowing out after a half in which core betting exchange revenues reached £170m, boosted by second-quarter growth of 12pc. Adjusted earnings before interest, tax, depreciation and amortisation rose 36pc to £42.4m, with pre-tax profits up from £7.45m to £20.9m – though last time's were hit by £14.7m of exceptional charges, mainly due to the float. The third quarter has started well with core revenues up 13pc.
Betfair is increasing its fixed-odds betting to compete with bookies that can offer instant in-play bets on such things as the outcome of a penalty. "The exchange is always going to be the vast majority of the business but we accept there are some things it can't do," Mr Yu said.
Mr Morana said Betfair punters were currently going to rivals for 30pc of their bets: "We need to give them no reason to go anywhere else." Betfair is testing a faster website that can download pages in 3 seconds compared to 18. Mr Yu said this had "not been driven" by recent site outages, punters failing to get on bets for the Tote jackpot or a cyber theft of customers' account details. "Betfair is more than 10 years old. When we built the system, we didn't envisage all these products," he said. The shares fell 17.5 to 795.5p.
He is handing over on an interim basis to finance director Stephen Morana, who will hold the reins until August's arrival of Breon Corcoran from rival Paddy Power.
"Once that appointment was made I became a lame duck. It's better to have clarity," said Mr Yu, who will still have his £515,000-a-year contract paid up to October next year.
Asked if he should not have waived that given the performance of the shares, Mr Yu said: "We have a contract in place. We will respect that."
He has already been criticised for the 125pc rise in his total pay last year to £824,676, though that was boosted by a short-term incentive plan.
Mr Yu is bowing out after a half in which core betting exchange revenues reached £170m, boosted by second-quarter growth of 12pc. Adjusted earnings before interest, tax, depreciation and amortisation rose 36pc to £42.4m, with pre-tax profits up from £7.45m to £20.9m – though last time's were hit by £14.7m of exceptional charges, mainly due to the float. The third quarter has started well with core revenues up 13pc.
Betfair is increasing its fixed-odds betting to compete with bookies that can offer instant in-play bets on such things as the outcome of a penalty. "The exchange is always going to be the vast majority of the business but we accept there are some things it can't do," Mr Yu said.
Mr Morana said Betfair punters were currently going to rivals for 30pc of their bets: "We need to give them no reason to go anywhere else." Betfair is testing a faster website that can download pages in 3 seconds compared to 18. Mr Yu said this had "not been driven" by recent site outages, punters failing to get on bets for the Tote jackpot or a cyber theft of customers' account details. "Betfair is more than 10 years old. When we built the system, we didn't envisage all these products," he said. The shares fell 17.5 to 795.5p.
September 26, 2011
Ed Wray leaving as Betfair chairman
Ed Wray the Betfair co-founder has announced he is to step down as chairman.
In a statement at the companies AGM held at the British Academy of Film and Television Arts in London, Wray said the company had now started a search for a deputy chairman of the board.
Mr Wray also thanked shareholders “along with our longstanding investors” for their support during a 12-month period in which Betfair “completed a key step in the evolution of the business through the Company’s listing on the London Stock Exchange in October”.
With the departure of CEO David Yu already announced in June, Betfair are now looking for another senior level placement.
In a statement at the companies AGM held at the British Academy of Film and Television Arts in London, Wray said the company had now started a search for a deputy chairman of the board.
Mr Wray also thanked shareholders “along with our longstanding investors” for their support during a 12-month period in which Betfair “completed a key step in the evolution of the business through the Company’s listing on the London Stock Exchange in October”.
With the departure of CEO David Yu already announced in June, Betfair are now looking for another senior level placement.
August 09, 2011
Latest Betfair marketing ploy a bum deal
Visitors to this week’s test London 2012 beach volleyball tournament at Horse Guards Parade in London are being encouraged to photograph the backsides of Britain’s female beach volleyball champions by online betting exchange Betfair.
Zara Dampney, 24, and Shauna Mullin, 26, members of the British Beach Volleyball team, have rented their rears out to Betfair as part of a novel sponsorship deal with the company, with Betfair placing a Quick Response (QR) code on the back of the volleyball champions bikini bottoms.
When photographed using a smartphone, the QR code takes a user to a specific website, in this case that of Betfair. The QR code is designed to be read quickly from any angle making it ideal for this type of promotion, but with an ideal code size to scanning distance ratio of 10:1, spectators may need to get up close and personal with the backsides in question in order to gain the full benefit.
The marketing technique is being trialled by Betfair at the event which runs from August 9th to 14th at Horse Guards Parade in London, the venue of the 2012 Olympic Games beach volleyball competition.
“There is huge interest in beach volleyball and we want to ensure that our advertising campaign is seen and remembered by as many sports-fans as possible,” said Betfair’s Andy Lulham. “As far as we’re aware this is the first time QR codes have been used in in-play sports advertising and what better way to test its effectiveness than by putting them on one of the places that is likely to get photographed the most.”
Zara Dampney, 24, and Shauna Mullin, 26, members of the British Beach Volleyball team, have rented their rears out to Betfair as part of a novel sponsorship deal with the company, with Betfair placing a Quick Response (QR) code on the back of the volleyball champions bikini bottoms.
When photographed using a smartphone, the QR code takes a user to a specific website, in this case that of Betfair. The QR code is designed to be read quickly from any angle making it ideal for this type of promotion, but with an ideal code size to scanning distance ratio of 10:1, spectators may need to get up close and personal with the backsides in question in order to gain the full benefit.
The marketing technique is being trialled by Betfair at the event which runs from August 9th to 14th at Horse Guards Parade in London, the venue of the 2012 Olympic Games beach volleyball competition.
“There is huge interest in beach volleyball and we want to ensure that our advertising campaign is seen and remembered by as many sports-fans as possible,” said Betfair’s Andy Lulham. “As far as we’re aware this is the first time QR codes have been used in in-play sports advertising and what better way to test its effectiveness than by putting them on one of the places that is likely to get photographed the most.”
July 25, 2011
Betfair enters German football sponsorship market
Having already dismissed Germany’s current proposals for its new State Treaty on Gaming as incompatible with European law, online betting exchange Betfair has entered into the German football sponsorship market for the first time following a deal with fourth division side Türkiyemspor Berlin.
Betfair will sponsor Türkiyemspor for the forthcoming season, with the company’s logo displayed on the front of the club’s football shirts. The sponsorship agreement is initially for a one year period, with an option for renewal.
“Our partnership with Betfair in the new season is an important and successful step for us,” said Yalcin Sancar, chairman of Türkiyemspor Berlin. “We are leaving behind the disappointment of last season. We must lay the foundation for a successful and sustainable future together – we must build that future together for the success of Türkiyemspor.
“Signing a sponsorship contract with an internationally successful organisation is another important step in multi-cultural bridge building for Türkiyemspor and it is a sign of our appeal.”
Founded in 1978, Türkiyemspor is a multi-cultural sports club recognised for its contribution to Germany’s immigrant communities, specifically within the Turkish community. Working with the German Football Association, Türkiyemspor paved the way for teams rooted in the country's various immigrant communities to participate in first and second division football in Germany.
The club currently plays in the Regionalliga Nord, the fourth tier of the German football league system, and the highest regional league for the northern and eastern part of Germany.
“Türkiyemspor has worked hard both in the field of athleticism and in working for tolerance and integration within and beyond the local community,” said Betfair’s regional manager of Germany and Central Europe Peter Reinhardt. “For us they are more than a football club. We specifically chose to sign with a sports club and not a professional football club.
“Without a foundation of sports clubs like this, there would be no professional football clubs. We are very pleased to be the new sponsors of such a special sports club and for the role we will play in helping this club move forward from the troubles of last season.”
Last week the standstill period for Germany’s new draft law on gambling was extended for a further month following receipt of detailed opinions from the European Commission and Malta, as well as the issue of comments from the United Kingdom. The move was welcomed by Betfair, which had earlier filed a legal complaint with the European Commission against the new German draft State Treaty on Gaming.
Betfair will sponsor Türkiyemspor for the forthcoming season, with the company’s logo displayed on the front of the club’s football shirts. The sponsorship agreement is initially for a one year period, with an option for renewal.
“Our partnership with Betfair in the new season is an important and successful step for us,” said Yalcin Sancar, chairman of Türkiyemspor Berlin. “We are leaving behind the disappointment of last season. We must lay the foundation for a successful and sustainable future together – we must build that future together for the success of Türkiyemspor.
“Signing a sponsorship contract with an internationally successful organisation is another important step in multi-cultural bridge building for Türkiyemspor and it is a sign of our appeal.”
Founded in 1978, Türkiyemspor is a multi-cultural sports club recognised for its contribution to Germany’s immigrant communities, specifically within the Turkish community. Working with the German Football Association, Türkiyemspor paved the way for teams rooted in the country's various immigrant communities to participate in first and second division football in Germany.
The club currently plays in the Regionalliga Nord, the fourth tier of the German football league system, and the highest regional league for the northern and eastern part of Germany.
“Türkiyemspor has worked hard both in the field of athleticism and in working for tolerance and integration within and beyond the local community,” said Betfair’s regional manager of Germany and Central Europe Peter Reinhardt. “For us they are more than a football club. We specifically chose to sign with a sports club and not a professional football club.
“Without a foundation of sports clubs like this, there would be no professional football clubs. We are very pleased to be the new sponsors of such a special sports club and for the role we will play in helping this club move forward from the troubles of last season.”
Last week the standstill period for Germany’s new draft law on gambling was extended for a further month following receipt of detailed opinions from the European Commission and Malta, as well as the issue of comments from the United Kingdom. The move was welcomed by Betfair, which had earlier filed a legal complaint with the European Commission against the new German draft State Treaty on Gaming.
June 13, 2011
Betfair files complaint with EC over Greek draft law
Betfair has filed a complaint with the European Commission over the ban on betting exchanges contained within the Greek draft egaming law.
Martin Cruddace, Betfair’s chief legal and regulatory officer, said: “Having played a constructive role in the preparatory phase of the draft Greek gaming law, we were disappointed with the inclusion of elements within it which unfairly discriminate against Betfair and are clearly incompatible with EU law.
“We have therefore asked the Commission to review the matter and engage with the Greek authorities, with the aim of addressing the concerns raised in our complaint."
In addition to challenging the blanket ban on betting exchanges, Betfair is seeking to address several other components within the draft law which it argues are in breach of EU law. These include the obligation to establish a Greek legal entity, locate servers and process gambling transactions exclusively within Greece, and also the requirement for online customers to obtain a special players ID card.
The EC is due to deliver its verdict on the compatibility of the Greek draft with EU law on 5 July. However shortly after notifying the proposal to the European Commission on 5 April, the Greek government withdrew the draft law from its own parliament for review amid Socialist Party concerns that the draft went too far towards “full deregulation of gaming and gambling.”
The Greek government originally presented its bill aimed at raising around €700m this year from the issue of 15-55 new licences to its parliament in March, by which time it had undergone several important changes since appearing in its initial form in January. These included dropping a proposed “black period”, requiring applicant operators to cease activity in the market until licensed, and opting for a 30% gross profit tax (GPT) instead of the 6% turnover levy originally proposed.
Martin Cruddace, Betfair’s chief legal and regulatory officer, said: “Having played a constructive role in the preparatory phase of the draft Greek gaming law, we were disappointed with the inclusion of elements within it which unfairly discriminate against Betfair and are clearly incompatible with EU law.
“We have therefore asked the Commission to review the matter and engage with the Greek authorities, with the aim of addressing the concerns raised in our complaint."
In addition to challenging the blanket ban on betting exchanges, Betfair is seeking to address several other components within the draft law which it argues are in breach of EU law. These include the obligation to establish a Greek legal entity, locate servers and process gambling transactions exclusively within Greece, and also the requirement for online customers to obtain a special players ID card.
The EC is due to deliver its verdict on the compatibility of the Greek draft with EU law on 5 July. However shortly after notifying the proposal to the European Commission on 5 April, the Greek government withdrew the draft law from its own parliament for review amid Socialist Party concerns that the draft went too far towards “full deregulation of gaming and gambling.”
The Greek government originally presented its bill aimed at raising around €700m this year from the issue of 15-55 new licences to its parliament in March, by which time it had undergone several important changes since appearing in its initial form in January. These included dropping a proposed “black period”, requiring applicant operators to cease activity in the market until licensed, and opting for a 30% gross profit tax (GPT) instead of the 6% turnover levy originally proposed.
April 08, 2011
Gambling Commission voids bets after X Factor probe
In a landmark move, the UK Gambling Commission has issued voiding orders for the first time under the Gambling Act 2005, after concluding an investigation into suspicious betting patterns involving three employees of media channel Virgin Media during last year's series of the popular weekly TV talent show The X Factor.
The Commission has voided bets totalling over £16,000 which were placed on The X Factor, and follows an investigation into a report of suspicious betting activity brought to its attention by Betfair’s Integrity Unit.
The investigation established that three individuals employed by phone line operator Virgin Media were misusing their access to Virgin’s data on voting patterns to place unfair bets on which contestants would be eliminated from The X Factor. The employees have since been sacked by Virgin.
“There is no evidence that the integrity of the public voting or the TV shows involved were compromised,” said the Gambling Commission in statement. “However, the Commission has consulted with Ofcom, which has been working with Virgin Media and other relevant stakeholders, to ensure that firm steps are taken to prevent a repeat of such activity.”
The voiding orders mean that any contract or other arrangement in relation to each bet is void and that any money paid in relation to each bet - whether by way of stake, winnings, commission or otherwise - shall be repaid to the person who paid it, and repayment may be enforced as a debt due to that person.
The voiding orders also indicate that Betfair should, to the extent that it may be in its power to do so, cause affected Betfair customers to be repaid.
“Following a multi-agency investigation led by the Gambling Commission, we are satisfied that the bets placed were substantially unfair as the individuals involved had inside information,” said Nick Tofiluk, director of regulation for the Gambling Commission.
“We have worked closely with all the bodies involved to ensure that those individuals do not profit from their activity and that appropriate action has been taken to prevent a recurrence of such activity in the future.”
The Commission has voided bets totalling over £16,000 which were placed on The X Factor, and follows an investigation into a report of suspicious betting activity brought to its attention by Betfair’s Integrity Unit.
The investigation established that three individuals employed by phone line operator Virgin Media were misusing their access to Virgin’s data on voting patterns to place unfair bets on which contestants would be eliminated from The X Factor. The employees have since been sacked by Virgin.
“There is no evidence that the integrity of the public voting or the TV shows involved were compromised,” said the Gambling Commission in statement. “However, the Commission has consulted with Ofcom, which has been working with Virgin Media and other relevant stakeholders, to ensure that firm steps are taken to prevent a repeat of such activity.”
The voiding orders mean that any contract or other arrangement in relation to each bet is void and that any money paid in relation to each bet - whether by way of stake, winnings, commission or otherwise - shall be repaid to the person who paid it, and repayment may be enforced as a debt due to that person.
The voiding orders also indicate that Betfair should, to the extent that it may be in its power to do so, cause affected Betfair customers to be repaid.
“Following a multi-agency investigation led by the Gambling Commission, we are satisfied that the bets placed were substantially unfair as the individuals involved had inside information,” said Nick Tofiluk, director of regulation for the Gambling Commission.
“We have worked closely with all the bodies involved to ensure that those individuals do not profit from their activity and that appropriate action has been taken to prevent a recurrence of such activity in the future.”
April 07, 2011
Revenue share deal from Betfair
Online casino and sportsbook operator Betfair is to offer all third-party developers a five percent revenue share for applications that are integrated onto its Sports Exchange mobile betting platform.
Betfair revealed that its Sports Exchange platform has been open to third-party developers since 2005 allowing for the building of applications designed to provide its punters with a personalised interface and specialised operations that would not otherwise be available via Betfair.com.
Undertaken in order to increase the amount of high-quality mobile applications being available to its customers, Betfair stated that this offer will also ‘stimulate and support innovation in the fast-moving mobile betting industry’.
“Betfair is excited about the future potential and growth we've already seen in mobile betting and we're keen to work with our developer community to build more high-quality mobile products for our three million customers to use,” said Tom Johnson from Betfair.
“The combination of the open nature of our Sports Exchange and the strong existing relationships we have with our developers has ensured that Betfair supplies products that not only push the boundaries of quality and innovation but ultimately provide our customers with the betting experience that they want.
“We’re confident that this new revenue share deal will further improve our product offering, our partnerships with our developer community and the experience of our customers.”
Betfair revealed that its Sports Exchange platform has been open to third-party developers since 2005 allowing for the building of applications designed to provide its punters with a personalised interface and specialised operations that would not otherwise be available via Betfair.com.
Undertaken in order to increase the amount of high-quality mobile applications being available to its customers, Betfair stated that this offer will also ‘stimulate and support innovation in the fast-moving mobile betting industry’.
“Betfair is excited about the future potential and growth we've already seen in mobile betting and we're keen to work with our developer community to build more high-quality mobile products for our three million customers to use,” said Tom Johnson from Betfair.
“The combination of the open nature of our Sports Exchange and the strong existing relationships we have with our developers has ensured that Betfair supplies products that not only push the boundaries of quality and innovation but ultimately provide our customers with the betting experience that they want.
“We’re confident that this new revenue share deal will further improve our product offering, our partnerships with our developer community and the experience of our customers.”
March 17, 2011
Betfair "concerned" about Ongame future
Betfair chief executive David Yu has admitted the company is “concerned” about the post Bwin.Party merger future of Ongame, only eight months after moving its poker product to the network.
Speaking after announcing the exchange would move offshore and operate under a Gibraltar licence from tomorrow, Yu said that despite its poker revenues falling 20.5% in the third quarter of 2010, he was pleased with Ongame’s performance since Betfair migrated its customers to the network in July, but added he was “unsure what would happen” when PartyGaming and Bwin merge on 31 March.
The future of the network, a Bwin subsidiary, has been in doubt since the approval of the merger and after it was revealed that it will could be sold before the end of the year.“It’s a concern given the uncertainty,” said Yu, “but we’ll stay in contact with them and we hope it will work out for us and other licensees”.
Asked if he had a back-up plan should Ongame’s situation change, Yu said: “We think about what might happen, we have the necessary experience and understand how networks work, but we’ll have to see how it goes and react accordingly.”
Yu and CFO Stephen Morana were asked about the drop-off in poker revenues during a conference call with city analysts this morning, and admitted they were disappointed with the immediate aftermath of the migration from Betfair’s standalone poker platform in July.“Some of our higher-value customers didn’t make the move across when we migrated, but we remain of the belief it was the right thing to do for us,” said Morana.
Yu added: “We’ll have to continue to work to try get more of them [higher value players] either though enhancing the product and our offering or through cross selling. We’re a leader in sports through our exchange and we get a lot of great customers coming in through sports betting, so cross sell will become even more important to us.
“We’re not out of the woods yet. We need to get the right message across as our poker is now a better product with better liquidity post-migration.”
Speaking after announcing the exchange would move offshore and operate under a Gibraltar licence from tomorrow, Yu said that despite its poker revenues falling 20.5% in the third quarter of 2010, he was pleased with Ongame’s performance since Betfair migrated its customers to the network in July, but added he was “unsure what would happen” when PartyGaming and Bwin merge on 31 March.
The future of the network, a Bwin subsidiary, has been in doubt since the approval of the merger and after it was revealed that it will could be sold before the end of the year.“It’s a concern given the uncertainty,” said Yu, “but we’ll stay in contact with them and we hope it will work out for us and other licensees”.
Asked if he had a back-up plan should Ongame’s situation change, Yu said: “We think about what might happen, we have the necessary experience and understand how networks work, but we’ll have to see how it goes and react accordingly.”
Yu and CFO Stephen Morana were asked about the drop-off in poker revenues during a conference call with city analysts this morning, and admitted they were disappointed with the immediate aftermath of the migration from Betfair’s standalone poker platform in July.“Some of our higher-value customers didn’t make the move across when we migrated, but we remain of the belief it was the right thing to do for us,” said Morana.
Yu added: “We’ll have to continue to work to try get more of them [higher value players] either though enhancing the product and our offering or through cross selling. We’re a leader in sports through our exchange and we get a lot of great customers coming in through sports betting, so cross sell will become even more important to us.
“We’re not out of the woods yet. We need to get the right message across as our poker is now a better product with better liquidity post-migration.”
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