High street firms hedge with exchanges

Racecourse betting markets have been rocked by the news that William Hill, Coral and Betfred will now use betting exchanges for the bulk of their hedging activities.

Hills were the first to announce the move on November 4, insisting that traditional hedging methods had become virtually worthless because on-course bookies were reinvesting their money directly into the exchanges, leaving the course market unaffected.

Betfred and Coral have since followed suit while Ladbrokes are “highly likely” to join the trend after monitoring the situation closely over the last few weeks.

Betdaq are the main beneficiaries of the news with Hills and Betfred insisting they will primarily use the Dublin-based company for their hedging while Coral say they will use Betfair.

Nov 04: Fears for on-course market as Hills switch hedging to exchanges (RP)

Nov 05: Betfred to hedge bets on exchanges (RP)

Nov 13: Bookmakers’ defiance over hedging on exchanges (RP)

Nov 15: Folkestone layers stress positives after hedging without exchanges (RP)

Nov 16: Farewell to the betting ring – and good riddance (RP)

Nov 18: Fly on the Cap says Brown not taking the exchange shilling (RP)

Nov 29: Coral joining Hills and hedging on exchanges (RP)

Betfair could provide the bookies SP

The traditional Starting Price system used by bookmakers to settle bets on horses and greyhounds is on the brink of extinction and Betfair could provide the basis for its replacement, according to the Racing Post.

With many high street bookies now using exchanges as a primary means to hedge their liabilities, it’s argued that on-course prices no longer reflect the true picture of the overall market and the big firms are keen to see an industry SP introduced in order to prevent their over-rounds being further reduced.

It has been suggested that Betfair would offer the best possible reflection of race markets but the obvious unfavourable comparison between its own prices and bookies prices once their margins had been taken into account could provide the biggest stumbling block to any such change.

Nov 10: Industry prices would be ideal for dog racing (RP)

Nov 30: Three ways that a new SP system could be compiled (RP)

Nov 30: As a hedging mechanism, the racecourse has begun to fail (RP)

Tasmania opens the door to Betfair

Betfair are on the verge of becoming the first betting exchange to operate in Australia after the Tasmanian government decided to introduce legislation that will grant licenses for peer-to-peer betting.

The UK’s leading exchange has operated on Australian racing and sports for three years, but an Australian license will allow the company to advertise and promote locally.

Their joint venture with Kerry Packer’s Publishing and Broadcasting Limited will be regulated in Australia with the Tasmanian state government receiving 35 per cent of gross profits on Australian racing events, 15 per cent of profits on other events and ten per cent on international events.

Nov 04: Betfair moves step closer to Tasmanian operation (RP)

Nov 27: Australian licence imminent as Betfair’s global ambition grows (RP)

Sporting Options final report published

The final report of the Sporting Options collapse has been published by administrators Menzies Corporate Restructuring, revealing the full extent of help offered by the Betfair rescue package.

In total, 98 per cent of the money owed to Sporting Options customers was accounted for by the 44 per cent of clients who took up Betfair’s reimbursement offer and 69 per cent of those customers had been fully compensated by November 8 of this year.

Full details of the company’s accounts can now be found on the Betfair website.

Nov 17: Sporting Options Administrator’s Progress Report (Betfair)

Nov 21: Final report on failed exchange reveals extent of Betfair help (RP)

Bookies up in arms about Betfair Chase

The British Horseracing Board came in for heavy criticism from bookmakers last month after allowing the new Grade 1 chase at Haydock to be staged under the sole banner of race sponsor Betfair.

Both Haydock and the BHB billed the contest as the Betfair Chase, even though the November 19 race was officially registered as the Lancashire Chase with Weatherby’s. The precedent prompted William Hill to make contact with Sandown about their sponsorship of the Tingle Creek Chase on December 3.

In a remarkable marketing coup, Betfair used the race to promote the Betfair Million with £1m awarded to the winning horse if it then goes on to land the King George VI and Gold Cup, races which are sponsored by traditional bookmakers. All eyes will now be on Kingscliff when he bids to land the second leg of the triple crown on Boxing Day.

Nov 17: Bookmakers upset by Betfair Chase decision (RP)

Nov 18: Tingle Creek title stays as Sandown takes firm stance (RP)

Nov 24: Betfair Million is brilliant – how about the same for hurdlers? (RP)

February launch of WBX is full of promise

The World Bet Exchange (WBX) will launch in February, promising the most technically advanced betting platform ever brought to the gaming industry.

The Covent Garden-based company didn’t offer too much insight into its product at the Betting Show at Birmingham’s NEC Pavillion in October but they still managed to impress many potential clients by offering free ice cream dished out by a couple of models in exchange for business cards.

However, Bet Exchange News readers will get the opportunity to find out more about the company ahead of their launch after we interview Chief Executive Operator xxx at their headquarters in January.

Oct 21: WBX serves Betfair warning (RP)