Articles tagged with: free bets

Wagering Companies Hoping for Lower Fee Regime in Victoria

horse racing

racing Victoria

 

The wagering industry has put pressure on Racing Victoria, leaving the racing body to consider implementing a lower fee regime aimed at punters who bet large amounts, but don’t leave much margin for bookmakers.

If Racing Victoria instead chose to back down, it would represent a large victory for various bookmakers like Tatts Group, Tabcorp, as well as operators of online wagering sites like Betfair, Sportingbet, Ladbrokes and Sportsbet. There are millions of bets being made on racing in Australia, with many of them being placed online. Bookmakers deploy various strategies to attract new punters, such as offering free bets online and other bonus offers. In fact, online gambling publications are often filled with advertisements for free bets Australia, which shows that online betting has gotten very popular in the country.

James Henderson, the chief executive designate of William Hill, a British wagering company that owns various online bookmaking sites like TornWaterhouse.com, Centrebet, freebets.com.au and Sportingbet, expressed confidence that a lower tax regime for big punters will be put into action by September, just in time for the beginning of the Spring Racing Carnival. Mr Henderson, who was visiting Australia, stated that William Hill is willing to work together with Racing Victoria to work out a model that is sustainable.

A new fee regime was announced by Racing Victoria back in May, with the objective of making up for diminishing revenue coming from traditional Tote betting, as more and more punters instead preferred to place their wagers online. With their offers of free bets Australia, many online bookmakers have been able to acquire new customers who regularly bet on racing events.

However, operators of online betting sites weren’t satisfied with the new model, which increased fees and caused the introduction of fees being levied based on income coming from revenue or turnover. Online bookmakers have said that this recent move would lead to them directing punters to place bets on racing and sports events in other states, even though Victoria is the most popular one.

According to Tabcorp, their earnings could be reduced by $4 million as a result of the recent move. Bookmakers have stated that higher fees charged by the racing body would mean that wagers made by “high turnover, low margin” punters would now be unprofitable. The racing body is now considering implementing a different regime, one that would instead levy on bets from punters who made over $100,000 in wagers during the quarter.p

It isn’t just the big punters that are making bets on thoroughbred racing in Australia. With so many free bets online offers, many punters that bet small amounts or only wager occasionally are now using online bookmakers to place their wagers.

Crown Attempts to Revive Betfair in $10 Million Deal

betfair

James Packer of Crown Resorts has announced that he is attempting to revive Australian gambling company Betfair by taking over the business. Crown Resorts already owned half of Betfair Australia, but has now purchased the other 50% for the sum of approximately $10 million.

Betfair Struggling

Crown Resorts and Betfair have been a joint venture since 2004, but in Australia’s highly competitive gambling sector Betfair has failed to become profitable despite enticements such as free bookie bets. The thriving free bets Australia market did not prevent Betfair Australia from losing nearly two million dollars in the second half of last year. Figures released by the Australia Securities and Investment Commission suggest that over the past seven years, Betfair has lost nearly $50 million dollars.

Recovery Plan

As Betfair’s British partner, Crown Resorts will provide the technological and other services necessary for Betfair Australiasia to modernize their operation. No layoffs have been announced so far, and Betfair management will maintain its operational independence at least initially. The pooled resources of both companies should be especially helpful to Betfair, with free bookie bets and other forms of free bets Australia promotions likely to continue. Betfair should also be helped by its strong presence locally and the fast growth in the Australian gambling market’s online sector.

Expansion

While Crown Resorts has not been explicit in outlining its new promotions and survival strategy for Betfair, some analysts suggest that Crown will try to broaden the range of gaming products Betfair offers to include online casino games such as bingo and poker. Betfair, which was originally started as a British company in 2000, has been known for its innovative betting exchange model which involves the ability to bet on both the chances of whether a horse or team will win, and also on whether or not it will lose. Yet, this two-sided feature has not been as popular as hoped.

Expanded Control

The new corporate arrangement will give Crown Resorts total control over the licensing company Betfair used. The deal also resulted in a surge for Crown on the stock market. However, that increase was still insufficient to bring Crown stock up to where it was a year ago. The Crown/Betfair deal is in some ways typical of the continuing consolidation of players in the online betting field. There have been a wave of new entrants into the Australian online betting market, with over #13 billion in new investors participating in just the past five years.

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