Market punters cautious about eBet

By Karyn Scherer

Overseas punters have significantly boosted the popularity of the TAB's internet betting facility.

The Australian company which manages the TAB's on-line racing and sports betting service revealed this week that the service was now handling more than $400,000 worth of bets each week.

Since it was launched in June last year, the service had handled more than $8 million worth of bets.

While the total was still small compared with the $20 million which passed through the TAB's retail agencies each week. eBet said the popularity of the service was growing at a "staggering" rate.

Around 7000 customers from 70 countries had now registered on the service's database - a figure the company said it was delighted with.

While it took the service nine months to pass its first million, it was now handling more than $1 million each fortnight.

eBet's product manager for racing and sports, Ben Astill, said the company had noticed an increase in overseas punters keen to bet on New Zealand events.

Six months ago, around 90 per cent of its customers were New Zealanders. That had now shrunk to around 85 per cent.

"The change, year-on-year, has been quite astonishing. It's growing exponentially every month," he said.

While two cases of credit card fraud had been picked up, the rate compared well to other services. The amounts involved were small, due to the service limiting customers to spending $500 a day, or $2000 a month.

The TAB was unsure just how popular the service was likely to get. "The strange thing is, retail is on the increase as well," said internet manager Tony Waldegrave.

"The only thing it may be compromising to some degree is the phone betting service."

However, there were indications this week that investors were becoming more cautious about the hype surrounding e-commerce.

Internet market wobbles saw eBet make a less-than-spectacular debut on the Australian Stock Exchange on Wednesday.

The shares opened at exactly their issue price, 50c, and by the end of the day closed at 43c, despite the issue being three times over-subscribed. It was unchanged yesterday.

The company, which has also won the contract to manage on-line sales for Victorian lottery operator Tattersall's, has confirmed it is also seeking a listing on the New Zealand exchange. Previously a subsidiary of smartcard technology group Coms21, it expects to list here in the next few weeks.