Tuesday, 27 January 2009

Betfair expands into the US

Betfair continues to grow with the purchase of American racing network and betting firm TVG. And who knows what might happen with gambling laws under the Obama admisitration?

Betfair purchases TVG from Macrovision Solutions

Betfair’s increased presence in the United States reached new heights on Tuesday, when the e-gaming business known for its exchange wagering purchased Television Games Network.

Read the full article from Thoroughbred Times here

Peter Webb from BetAngel brought up the interesting point of Betfair's profits likely to fall because of interest rates being so low.

The problem that Betfair has lies in one aspect of Betfair's business model. One that is directly related to interest rates.

If you look at their reports and accounts in the last five years, interest received on cash in hand has totalled a eye watering £26m. In 2007 & 2008 interest received accounted for 25% of profit before tax for Betfair.


So perhaps now they get more aggressive in acquiring other companies to increase company value and/or profits?

3 comments:

  1. We're pretty interested to see what becomes of this. Keep us posted on news from across the pond if you see any.

    PTP

    ReplyDelete
  2. Watch for some big innovation at TVG, and a lot of resistance from the old guard before they eventually cotton onto the fact the industry will profit from getting out of the dark ages. Hopefuly for the sake of the industry, they won't waste ridiculous amounts of money in the courts like in Australia.

    ReplyDelete
  3. Scott,

    Would you email us (address on our blog)

    Thanks,

    Horseplayers Assn of North America

    ReplyDelete

Thanks for your comments, but if you're a spammer, you've just wasted your time - it won't get posted.