Last April Betfair announced it was seeking a licence in Tasmania in a 50-50 joint venture with Kerry Packer’s Publishing and Broadcasting Ltd (PBL). The London-based betting exchange can already operate in Australia under its UK licence, but if it is granted one in Australia then the company is free to advertise in the country. The racing industry is in two minds about the proposal, which has been described both as suicide and as bringing great benefits.

In Hobart tomorrow the Tasmanian Premier, Paul Lennon, will meet with representatives from racing to discuss the proposed Betfair licence. On a local Australian radio station Mr Lennon said that betting exchanges were a sign of the times and it was better to regulate the activity which would be impossible to stop because of the way the Internet functions. He added that the racing industry should look forward at the new opportunities Betfair represents. In order to be convinced, racing bodies would need to see that the industry was protected and that there would be more money for racing purses.

Tabcorp, Racing Victoria and Racing New South Wales have already threatened to exclude Tasmania from SuperTAB betting and Sky Channel coverage if it licenses Betfair. However, Tasmania has a tradition of being at the forefront of gambling legislation. When George Adams, founder of Tattersall’s, met obstacles on the mainland to his fledgling business, it was Tasmania that created the opportunity for the lottery business to prosper when Adams moved there in 1895. Tasmania also licensed the first Australian casino in 1972.

The argument that the integrity of the industry is threatened by allowing wagers on a horse losing does not impress the Premier. It seems highly probable that Tasmania will once again be a pioneer in the gambling arena and licence the first betting exchange operation in Australia. (E-07.13.05)

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