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Welcome to the News desk. |
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Betfair takes a £35m punt on American racing
channel |
28/01/2009 |
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Greg Wood
Betfair, the internet betting exchange which matched its first bet
less than 10 years ago, took a huge stride into the American racing and betting
markets yesterday when it purchased the racing television channel TVG for $50m
(£35m).
TVG covers racing
from 70 tracks in 16 states, including the major racing centres of Kentucky,
California and New York. It also accepts bets from residents of those states,
dividing the profits with the racecourses concerned, which include Churchill
Downs, the home of the Kentucky Derby, Santa Anita, Belmont Park and Saratoga.
Betting in the US is strictly regulated, and its gambling market has
previously been considered off-limits for British betting firms. Betfair has no
plans at present to introduce its exchange model of betting into the American
market, but will expect to use its cutting-edge betting technology to improve
the pari-mutuel service to TVG clients.
Looking further into the future, meanwhile,
Betfair's purchase of TVG must also give the company a significant head start
on its competitors if, or when, current regulation is eased. US racing has
struggled to compete in the domestic gambling market in recent years, prompting
some industry figures to suggest that an exchange model, giving punters much
greater choice and flexibility in their betting, could be the way forward.
"We have waited to enter the US market until we had a high-quality, and
above all, legal product offering," David Yu, Betfair's chief executive, said
yesteday, "and we believe with this acquisition we have secured those goals."
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