Skip to main content

IAS sells off Canbet

Canbet sold to Yin Khing Investments for $1million

Hardly a surprise, Canbet has been a lemon for sometime. Back around 2000, Canbet was flying. Licensed and run from Canberra (hence the name), it was a leading brand for betting on US sports, betting tight margins and trading the American way - copy the Vegas line and move it when everyone else does. Move the price a few cents and the scalpers come in to balance up the books. But then they got too ambitious and tried the same formula on European and Australian sports. They failed dismally. They moved the operation to the UK to gain more European clients and make better use of the timezone, but all the while, employing little resource at risk management and trading. A sportsbook valued at over US$20m was going downhill fast.

Then along came tighter regulations in the US, forcing Canbet to cut all their ties with American customers, who had been the entire reason the business was profitable. IASBet came along soon after and bought Canbet for $1m, a huge drop in price compared to their high-flying days. The value for IAS was in the UK licence, which they had been seeking for some time. IAS tried to extend their Australian operations into Canbet but like much of their trading, couldn't get it to work. IAS make virtually all their money from racing and proprietary trading off their brilliant databases and trading models. Their profits from cusotmers are negligible.

The Canbet operation continued to flounder, losing AU$8.6m in the 2007/08 financial year and another $3.7m in the latter half of 2008. The time had come for IAS to cut their losses and get rid of the lemon that was hurting the value of their share price.

The new owner, Yin Khing Investments, is registered in the British Virgin Islands with links to Singapore.

This now makes IAS a better prospect for a buyer, but in this climate and at the price Read & his board want, who is going to buy them? Centrebet want(ed) in, Sportsbet bought in perhaps to give Read support to block the Centrebet move, Paddy Power are allegedly trying to do a deal with Sportsbet, the Tas Tote is still up for sale, the Vic wagering licence is up for renewal soon... interesting times ahead.

Comments

Popular posts from this blog

It's all gone Pete Tong at Betfair!

The Christmas Hurdle from Leopardstown, a good Grade 2 race during the holiday period. But now it will go into history as the race which brought Betfair down. Over £21m at odds of 29 available on Voler La Vedette in-running - that's a potential liability of over £500m. You might think that's a bit suspicious, something's fishy, especially with the horse starting at a Betfair SP of 2.96. Well, this wasn't a horse being stopped by a jockey either - the bloody horse won! Look at what was matched at 29. Split that in half and multiply by 28 for the actual liability for the layer(s). (Matched amounts always shown as double the backers' stake, never counts the layers' risk). There's no way a Betfair client would have £600m+ in their account. Maybe £20 or even £50m from the massive syndicates who regard(ed) Betfair as safer than any bank, but not £600m. So the error has to be something technical. However, rumour has it, a helpdesk reply (not gospel, natur

lay the field - my favourite racing strategy

Dabbling with laying the field in-running at various prices today, not just one price, but several in the same race. Got several matched in the previous race at Brighton, then this race came along at Nottingham. Such a long straight at Nottingham makes punters often over-react and think the finish line is closer than it actually is. As you can see by the number of bets matched, there was plenty of volatility in this in-play market. It's rare you'll get a complete wipe-out with one horse getting matched at all levels, but it can happen, so don't give yourself too much risk...

Wimbledon preview - women

Unfortunately this year I don't have the time to write comprehensive Slam previews anymore so I'll sum this one up pretty quickly - it's all about Serena. 1 - Serena Williams. In incredible form. Since bombing out in R1 of the French Open last year, she has lost just three times - to Kerber (Cincinnati QF), to Stephens (Aus Open QF) and to Azarenka (Doha final). She has won three of the last four Wimbledon finals plus the Olympic gold last year where she dropped just 17 games in six rounds, against opponents which included four former world #1s. All that considered though, I can't have her at 1/2 (1.50) on Betfair. She just has to be opposed. I can't put a finger on who is going to beat her, but I have to side with her prospective opponents. If you want a smokey to put some small change on, try Maria Kirilenko. Her record in the Slam isn't so great but it has been improving - a best result of R4 last year beaten by finalist Radwanska 7-5 in the third, and