Racing: Betfair will be here - like it or not

The International betting giant Betfair will be operating legally in New Zealand within two years.

Possibly much sooner.

The agency, widely despised by official agencies such as our own TAB, is getting close to being officially sanctioned in Australia.

After a couple of years of posturing against Betfair, the Australian racing industry has all but conceded defeat.

Legislating against an internet product is virtually impossible.

The Australian newspaper reported yesterday: "Betfair is close to satisfying requirements introduced by the Victorian Government in November under the Gambling Regulations Act."

Betfair, with its offering to punters to back to win or lose, has revolutionised betting in the UK and has spread its seductive wings to many parts of the world.

Betfair has been officially sanctioned in Tasmania, which led to the million dollar pot for the recent Interdominion Championship in the island state and it has suddenly looked like getting a foot solidly in the door of the more significant Australian racing jurisdictions.

Australian bookmakers have already accepted the inevitability of Betfair operating wholesale on Australian racing, despite it waiting for official permission.

"Look, it's coming," says one, "and, while there is an initial downturn in betting overall through the usual channels, that eases off and the result is that it's quickly back to business as usual. The South Africans lambasted Betfair to start with, now they are happy to take a fee."

That fee is for officially allowing betting on a given sporting or racing product.

The return to the provider is currently being agreed upon, but is expected to be between 1 and 1.5 per cent of turnover.

The paranoia around Betfair is that it will replace TAB turnover, traditionally the lifeblood of New Zealand racing, but the 3 1/2 years Betfair has operated from its English base has shown that to be a fallacy.

Betfair is the most remarkable growth betting medium in the world, but essentially it has not eaten into traditional local betting markets.

"It's new money," said Brian Taylor of Melbourne-based DoubleBet, an agency you would have originally thought would have violently opposed any opposition.

What will speed up the acceptance of Betfair in Victoria will be the expected appointment to CEO of Racing Victoria of Greg Nichols.

Nichols started out in South Australian racing, became an important executive with the Victoria Racing Club and for the past three years has worked for the British Horseracing Board.

The Racing Victoria CEO position is on the line and, despite opposition from some quarters, Nichols is favourite to land the position.

Nichols has not been a specific advocate of Betfair, but has always believed in the principle of allowing market forces to dictate.

New Zealand Thoroughbred Racing deputy CEO Englishman Simon Cooper witnessed the remarkable rise of Betfair in the UK and sees the inevitability. "When Betfair first operated on the Oaks in Britain in 2001 the turnover was £3500 ($10,400). They recently sold 23 per cent of the business for £350 million."

Integrity issues, probably the biggest anti for Betfair, have been thoroughly addressed. The importance of that is that Betfair provides the opportunity to bet on any horse, team or individual to be beaten.

History has shown it dramatically increases the volume of betting.