Betfair Australia Reports Success for First Major Betting Event
Betting exchange Betfair's Hobart-based operation took bets from more than 6,500 punters worldwide during Wednesday's Melbourne Cup, passing the first major test of its Australian operations. The company brought in $4 million in wagers, according to The Sydney Morning Herald. Betfair Australia Corporate Cirector Andrew Twaits said 60 percent of the money wagered during the Cup came from overseas punters, adding that local betting had doubled since gaining an Australian license in January. . . . National TAB turnover on the 2006 Melbourne Cup, on the other hand, fell just short of $140 million, down almost $5 million on last year's revenue. Tabcorp reported a downturn in betting on the biggest race of the event -- Delta Blues vs. Pop Rock -- but noted a 9 percent increase in total turnover on all meetings on Melbourne Cup day. New South Wales's turnover of $53.1 million was down 5 percent on 2005, and Victoria's TAB betting on the Cup dropped 1 percent to $35 million. Queensland brought in $25.5 million; Western Australia brought in $12.5 million in; South Australia, $8.8 million; Tasmania, $2.3 million; and Northern Territory, $1.6 million.
NYRA Files for Bankruptcy
The New York Racing Association (NYRA), the operator of Aqueduct, Belmont, and Saratoga racecourses, filed for bankruptcy protection on Nov. 2 in United States Bankruptcy Court for the Southern District of New York. NYRA officials said that filing under Chapter 11 would not affect the association's racing schedule or its operation, nor would it require the association to fire any employees. "Chapter 11 bankruptcy does not mean going out of business," NYRA President Charles Hayward said in a prepared statement. "In fact, it is a constructive process that allows NYRA the opportunity to achieve financial reorganization while continuing to conduct world-class Thoroughbred racing without interruption." NYRA currently has $20 million in unpaid real estate taxes, and $12 million in obligations to its pension fund. Furthermore, the association has struggled since at least late 2005 to meet its payroll and has ongoing cash-flow problems. The company filed for bankruptcy after rejecting a $19 million loan from the state oversight board, claiming the conditions of the loan were unsatisfactory.
Arena, TVG Ink Broadcasting Deal
Arena Leisure PLC, operator of British horseracing television network At The Races (ATR), has signed a multi-faceted, long-term reciprocal agreement with TVG, the broadcaster of live horseracing in the United States and account wagering operator. ATR coverage will reach nearly 20 million homes in the United States via TVG's network. The agreement reportedly also incorporates The Racing Network International (TRNI), which promotes U.S. racing via its FastBet software, enabling bets placed by United Kingdom punters on U.S. racing to be intermingled back into U.S. host tracks' pools. Furthermore, ATR will be TVG's exclusive broadcast partner in the U.K. and will simulcast TVG's program output nightly. TVG content will appear on ATR's main broadcast channel, as well as its interactive service, ATR Active. Finally, TRNI will become the exclusive supplier of British and Irish horseracing product to TVG.
TVG Handles $6.7 Million for Breeders Cup
This year's Breeders' Cup World Championships, held Nov. 4 at Monmouth Park in Oceanport, NJ, provided a big payoff for horseracing network TVG, which processed more than $6.7 million in wagers. The number marks only the second largest single-day handle in the company's history; the 2006 Kentucky Derby brought in $7.55 million.
It's Official: Gala Coral Bids for UK Tote
U.K.-based gaming group Gala Coral (GC) has put in its official bid of over £400 million ($761 million) for the Tote, the government-owned bookmaker. The Times reported that the deal would see the company pay £325 million ($619 million) for the Tote's 540 retail shops and would offer the on-track betting operation, which GC values at £80 million ($152 million), to the United Kingdom's racing industry for £1.
Racing Second to Football in UK Popularity
A report commissioned by Racecourse Holdings Trust has found that British horseracing will draw close to US$570 million (£300 million) in investment by 2012. Report authors Deloitte & Touche found that increased investment in racetracks and the extended racing season will cause a rise in attendance and turnover, making the sport the country's second most popular sports investment sector after football. According to the research, horse-racing sponsorship reached £23 million in 2005, with over 90 percent of races on TV sponsored. The United Kingdom also gained £280 million in tax revenues last year from horse racing and associated gambling.