BETFAIR : THE LATEST

READ DOWNLOAD

I do not pretend to fully understand all of the implications and ramifications of the recent agreement reached between the BHA and Betfair but it does seem, at the very least, to be a positive development.

Surely this must open up the opportunity for some sort of similar accord to be reached which would allow South African punters to legally participate in this offering as well?

At the moment local punters are still subject to the sort of closed mindset which I am sure was prevalent when the motor car was introduced : “Horses ( the tote ) have served us well for centuries and the car ( Betfair ) is a passing fad. So we just ban it.”

God forbid – Betfair might bring new players ( read : fresh REVENUE STREAM ) into the game. Admittedly not at the confiscatory takeout levels so beloved by Saftote but nevertheless as additional contributors.

My experience of South African business models is that they tend to be the complete opposite of those employed by many other countries : When things get tough PUT PRICES UP or OUTLAW it. There seems to be little appreciation of the concept of lowering prices or improving efficiencies to PROMOTE support or additional turnovers.

A number of issues in the BHA/Betfair accord resonate very loudly in our local market.

Is there even the slightest chance that we might learn from them without having to re-invent the wheel over the next 10 years at enormous expense and at the risk of totally destroying the fragile present status?

Attached files Betfair.docx (17.9 KB)Â

Is the trademark BETFAIR illegal in RSA, or is the concept/operating of a betting exchange illegal?
I am sure it is a combined effort by the tote operators, existing bookies, government and the usual corrupt politicians that keep us chickens wings well clipped.

Many many threads on this subject but basically a punter can't lay a horse without a license.

Interbet is our only exchange and it's punter to bookie not punter to punter.

Put betfair in the search and enjoy the posts .

Betfair have not given up however much red tape and the potential loss of jobs in our job creation drive would be one of the major stumbling stones.

Depends how it is presented...........many previously disadvantaged could gradually enter "bookmaking" at a modest level without the inhibitors of entry such as big capital, guarantees and red tape!

good point Rob

I am from outside SA and use Betfair on your racing regularly.
I went to a Betfair seminar today, and it was interesting that Betfair believe that about 80% of the liquidity is generated by traders, rather than punters.
Betafir is good for bookmakers as they can take bigger bets and lay them off.

I met and interacted with a couple of Betfair fellows a few years ago and I was surprised to learn that,even in the UK,very few of the "run of the mill" subscribers lay.They believe that most customers are comfortable with traditional betting(ie backing) but insecure when their liability exceeds their stake,which counts out laying most of the time.
I would guess that a fair amount of the traditional bookies use Betfair for arbing.

The issue of traders & punters co-existing on Betfair is an interesting one.

And perfectly understandable if you consider the thin SA market ( see Justanotherpunter's post : R2825 on Kirtling Towers;That's What It Takes To Shorten A Horse From 20-1 to 11/2 ). Clearly our odds layers struggle to assemble even a single gonad amongst them! They all simply want to be risk free retailers sourcing stock at wholesale.

Then again - so what if bookmakers do use Betfair? It's merely one of a diminishing number of lay off options available to them. And a pretty transparent market to boot.

The obvious parallels to this phenomenon are to be found in the insurance industry : No assurer or insurer in its right mind carries 100% of any risk that it takes on. They all have re-insurance treaties where they 'lay off' a portion of the risk with the re-insurer at more favourable terms than have been offered to the end user. It's a classic retail/wholesale scenario.

The modern bookmaker is even more likely to habitually 'take back' as few races offer the opportunity to bet over round as so few horses are backed in any given race outside of the big events. With field money particularly scarce bookmakers are 'standing' horses in almost every race; so clearly are at liberty to determine how much they wish their liabilities to be.

What I always find far more disconcerting is the enthusiasm with which SA punters seem to wade into an endless succession of short priced waiting-to-be-beaten favourites. Jackson ( under a large weight and from an awful draw against no less than 19 VERY LIVE competitiors ) being just one recent and more obvious example of this trend.

Betfair have lost heavily getting involved in Australia so far, and they are waiting for favourable developments in America. Recently California and New Jersey enacted legislation favourable to betting exchanges.

Kosbar not sure I understand lost heavily?

As far as contributions to racing, initial outlay etc? As far as Betfair as a tool, they only match people with opposing views and take a percentage from the winner, so have no liability? Could you clarify Txs

Kosbar,exchanges can't lose on the core business,and their expenses are very managable.................they are merely a fixed-price tote facilitating "person to person" betting.

The problem in Aus is that the Betfair lost the Supreme Court case v Racing NSW (worth reading the judgement) that allowed Racing NSW to impose a 1.5% turnover tax on all bets. After NSW won the case, the other states followed.
Much of Betfair's turnover is in trading --- e.g. a punter lays 200 @ 2.00, and backs it later 200@2.20, he wins 40 on the transaction, and is taxed 5% ($2) on the transaction, but Betfair have to pay 1.5% tax on the full $400 = $6.