Australian media magnate Kerry Packer, who revolutionized cricket in the seventies, is making a move to boost his 50-50 partnership with British betting exchange firm Betfair to obtain a racing operating licence in Tasmania. While the Tasmanian racing industry is opposed to betting exchanges, The Australian Daily Telegraph reported that officials from Tasmanian Premier Paul Lennon's office were due to meet with PBL and Betfair representatives.

The possible signing of a wagering contract with the Tasmanian government would set in train Packer's 50-50 joint venture with Betfair, the newspaper said. Betting exchanges allow punters to back horses to lose as well as win, sparking calls from the racing industry that it could foster corrupt betting activity. Packer's move could be the first step in changing the wagering landscape in Australia by offering punters an opportunity to use new media to watch racing and sports from the comfort of their living rooms via digital TV. Packer's PBL signed a deal with Betfair last year, understood to be worth $30 million.

Tote Tasmania CEO Terry Clarke expressed the views that betting exchanges did not contribute to the racing industry: "Tote Tasmania has stated its position previously on this issue and that is we are against the licensing of betting exchanges because they don't give anything back to the racing industry." If the Tasmanian Government does break ranks and license betting exchanges, it would damage the Tasmanian racing industry, and could dramatically reduce its wagering revenue base, as the Tasmanian racing industry would face almost certain expulsion from mainland TAB betting pools, will then have to pay crippling product fees to allow Tote Tasmania to even wager on interstate racing.

Betfair spokesman Mark Davies has said "The perception out there is that we are making hundreds of millions of pounds a year and we are contributing nothing. But the results show that we are, in fact, giving away a high percentage of our profit." The company reported that Betfair ploughed 30 per cent of its profits back into the British racing industry last year and is prepared to do the same in Australia if it gains a licence. Davies said Betfair would match the fees paid by the TABs as well as contributing all unpaid fees since it began operating on Australian races two years ago.

As originally in Great Britain, racing bodies in Australia oppose the betting exchanges in defence of their bookmaking deals. North South Wales racing supremo Peter V'Landys threatened doom and gloom for Tasmanian racing: "If the Tasmanian Government does licence betting exchanges, it will send their racing industry on a suicide mission." TABCorp-owned Sky Channel is almost certain to withdraw Tasmanian racing's three codes from its nationwide coverage, further eroding wagering revenues. Nonetheless, with Packer on board and on the offensive, PBL must have other alternatives available to revitalize Tasmanian racing and give punters better value though the betting exchanges. (E-04.05.05)

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