The constitutional challenge mounted by online betting company Betfair has been successful in the High Court, and Western Australia’s anti-betting exchange legislation has been ruled as posing an unfair burden on interstate trade. Betfair can now anticipate the return of some 1600 customers registered in Western Australia.

In January 2006 Betfair was granted an operating licence in Tasmania and under the Australian constitution, which provides for trade, commerce and intercourse among states to be absolutely free, started providing an online betting service to Australians. The WA legislation then caused customers in that state to become liable to a fine of A$10,000. Betfair has now won a High Court ruling in its favour, in a 7-0 decision.

The Court proclaimed that the WA legislation left bookmakers and the TAB without competition to their revenue and the states prohibition on using WA race fields left Betfair without the use of an element of its trading operations. Betfair CEO Anthony Klok coomented: “Apart from the lifting of an unfair commercial restraint on our business, it opens the door for us to establish a formal relationship with the Western Australian racing industry.” (E-03.27.08)

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