Racing: Exchanges opposed by NZTR

New Zealand Thoroughbred Racing (NZTR) chairman Guy Sargent has announced the organisation's opposition to betting exchanges - where the odds are set by punters rather than bookmakers - operating on New Zealand racing.

The issue is being discussed at the biennial Australasian Conference of racing ministers in Auckland this weekend.

A NZTR statement yesterday said British betting exchange company Betfair, the dominant online exchange, had its sights set on New Zealand and Australian racing.

Betfair, a privately owned company which pioneered the concept of exchange betting, is seeking a licence to put its second global base in Australia.

"I have seen the independent economic analysis on the implications of exchanges for racing and anyone who thinks that betting exchanges would be a good thing for the New Zealand industry should think again," Sargent said.

"The research undertaken for our Australian counterparts shows that licensing betting exchanges could cut their revenues by up to A$150 million ($161.70 million) a year, equivalent to almost one-third of Australian thoroughbred racing's total funding."

Sargent said if that research were applied to New Zealand, more than 30 of the country's 70 race clubs could be wiped out.

"This would inevitably result in job losses and the erosion of a major source of revenue for New Zealand."

Betfair, which Kerry Packer's publishing company PBL has a buy in agreement with - subject to it getting licensed in Australia - has in the past indicated Australia is its main focus.

- NZPA