Three for Betfair
Online betting exchange Betfair has been very busy in recent weeks. For starters, the company joined the list of sponsors for Ryder Cup Race Day, taking place at the Curragh racecourse in Kildare, Ireland on September 19, and has put up 70,000 euro for the Betfair.com Premier Handicap, one of the event's seven races. The company also agreed to pay 10 percent of its gross profit on Irish horseracing directly to Horse Racing Ireland (HRI). The agreement guarantees revenues to HRI in excess of 1 million euros per year for the first three years, plus Betfair will make a backdated payment covering the period of 2003-06. The agreement will be carried out along the same lines as the levy payments Betfair makes in Britain. Further, the Irish Turf Club (the body responsible for regulating Irish racing) and Betfair have entered into a memorandum of understanding through which the regulatory body will have access to data from Betfair to address any integrity concerns over the betting activity on any events under its jurisdiction. Finally, Betfair announced that former British Horseracing Board CEO Greg Nichols has joined the company as the new managing director of sporting affairs.
Two for Hong Kong Jockey Club
The Hong Kong Jockey Club is reportedly considering exporting horse betting, football betting and lottery games (its three key products) to other jurisdictions, including the lucrative mainland market. Outgoing head Ronald Arculli said that the organization had been in talks with representatives from other countries over the past two to three years on the potential expansion of its business, but added that no concrete plans have been made. The Jockey Club has a government-granted monopoly on legal betting and is the third-largest charitable organization in Hong Kong. Arculli says Hong Kong does not need casinos of its own; the increasingly crowded landscape has forced the Jockey Club to search for new markets of its own - including overseas gamblers and younger audiences in Hong Kong.
Hong Kong's Home Affairs Bureau issued a license to Hong Kong Jockey Club Horse Race Betting Limited, which took effect Sept. 1. Subject to stipulations set forth by the Secretary for Home Affairs on the advice of the Betting & Lotteries Commission, the Jockey Club can now conduct betting on approved horse races until Aug. 31 2007. HKJC Horse Race Betting Limited also plans to introduce a rebate program from the start of the 2006-07 racing season for bets placed by customers in the Win, Place, Quinella or Quinella Place betting pools for all local races, to combat the discount offers made by illegal bookmakers and entice customers targeted by the illegal market.
MEC Loses Independent Director
Gino Roncelli has stepped down from the board of directors of North American racecourse operator Magna Entertainment Corporation (MEC). Roncelli informed the company on Aug. 21 that "after having been a director of MEC for over six years during its formative years, I feel now is the appropriate time to step back and devote more time to my personal life. I wish MEC all the best for the future and I look forward on spending many days at Santa Anita when I am not traveling." The company said it is searching for a replacement.
Bad News for Tabcorp, Good News for Unitab
Tabcorp's A$1.9 billion hostile takeover attempt of Queensland company Unitab was rejected on Aug. 16 by the Australian Competition and Consumer Commission on grounds that the combined company would unfairly dominate betting on horse races. Meanwhile, Unitab proceeded with the $4.3 billion merger plan with Victorian gaming and lotteries operator Tattersall's, with whom Unitab had been in talks since March. Unitab shareholders approved the merger today at a meeting in Brisbane.
Good News for Tabcorp
The New Zealand Racing Board (NZRB) and Tabcorp signed an agreement at the end of August to promote a closer relationship, with the combining of betting pools at the top of the agenda. NZRB CEO Graeme Hansen said that it could be implemented by early next year. The two groups also agreed to discuss increased coverage of each other's racing. Tabcorp holds the betting licenses for New South Wales and Victoria.