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The restrictions on inter-state advertising for betting exchange Betfair is holding back the growth in revenue for the racing said the international director of Betfair, Edward Wray.
Wray, who is the co-founder of Betfair, its first CEO for three years and a current director of the UK parent firm, heads up the international expansion of Betfair who have joined with Australian listed company PBL for their Tasmanian licence.
On Friday Betfar was granted permission by Racing Victoria Ltd (RCL) to use Victorian race fields on its web site and once again offer wagering on Victorian racing.
Betfair used to offer Victorian racing from 2002 until November 2005 while RVL worked thorough the new legislation requiring TAB’s, bookmakers and betting exchanges to apply for permission to use the intellectual capital of the race fields.
They, like all bookmakers throughout Australia who have applied and been accepted by RVL, will pay a product fee of 1% of turnover to RVL.
Wray said that the current advertising restrictions need to be lifted.
“The advertising inter-state restrictions need to be lifted as they are depriving racing of revenue,” he said.
“The restrictions are designed to protect the local TAB operations,” said Andrew Twaits, Betfair’s Director, Corporate and Business Affairs, Australia.
“It means that racing is losing millions in sponsorship which is a direct cash injection into racing.
“If the competition was opened up then it would mean that TAB’s, bookmakers and us would all be competing with our sponsorship dollars.
“The restrictions are protective by their very nature and racing is missing out,” he added.
In the UK Betfair are a major sponsor of both the flat and jumping racing seasons.
Wray said that the real competitor to racing was betting on other sports and he said that the challenge for racing was to ensure that someone reaching an age where they could legally bet went to racing first, instead of turning to sports betting.
“If racing stands still while other sports go forward, then racing goes backwards,” said Wray.
“Racing needs to adapt to the times,” he added.
Wray said that the ability of Betfair to publish Victorian fields once again would benefit the state’s racing as it would broaden the base of punters betting on Victorian from Betfair’s international client base, mainly from the UK.
“It is a major opportunity for racing in general as it makes it a much more international product,” he said.
Wray said that while Betfair’s current Australian base was relatively small and that they would be working to build their Australian client numbers.
In the UK the current levy paid to the racing industry by bookmakers and betting exchanges is £100 million and Wray said that Betfair was approximately 5/6% of that total after six-years in business.
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