Sport is made for betting

The Sportingbet bid for Centrebet looks to be signed and sealed now with Australian courts giving approval that it doesn't breach any anti-competition laws. So Ladbrokes choose not to bid on Australia's first online bookie, letting Sportingbet buy them out, so they can then take them over.... Interesting concept - surely someone's paying too much along the line? Centrebet takeover approved by Australian court Sportingbet’s takeover of Centrebet has edged closer after receiving the approval of the Federal Court of Australia. The news follows last week’s announcement that the takeover had received the backing of Centrebet shareholders. In a statement to the London Stock Exchange this morning, London-listed Sportingbet confirmed that the schemes pertaining to the takeover will “become effective” upon the lodging of relevant court orders to the Australian Securities and Investments Commission tomorrow. The suspension of Centrebet shares will follow, with the Australian co...

Interesting article here from the Sydney Morning Herald, illustrating the different betting characteristics on racing by state, and on particular sports. This highlights why betting sites need to know their punters and customise their product accordingly. The live betting figures are interesting - I'd have to see figures on how many games are shown live in each code to make a fair comparison. Australian terrestrial TV networks love showing matches on 30min delay so they can squeeze in as many ads as they can. From next year in the AFL at least, all games will be shown live, even in the home city. And about bloody time too! Brash gamblers still think inside the box .. Nicholas Tzaferis, general manager of Tabcorp's corporate affairs, says, "In terms of race betting, NSW punters have a clear preference for win betting, which accounts for more than half of all money wagered on NSW racing. In Victoria, win betting accounts for 42 per cent of turnover." Multiple be...

A lot to catch up on after my recent time away, here are some of the stories making the news: The Australian Federal Government has promised a review of online gambling and might finally do away with the ridiculous ban on in-play betting online. But then again, they might not... Note the incorrect linking of Serie A matches with match-fixing for betting by the Australian Crime Commission. Full Tilt Poker's licence has been suspended with immediate effect by Alderney regulators. Was it their decision or did the Yanks have a word in their ear? Betfair are searching for a new CEO and analysts admit it is a "potential opportunity for improvement". Financial results for Betfair show profits up but revenue down . Punters are rallying against Betfair's decision to heftily increase the Premium Charge. Check out the Facebook group here. Poland has signed in their draconian gambling legislation banning all firms without a local licence. As a result, some firms, ...

After a few attempted rorts in rugby league and a few plunges based on leaked team information, the major Australian sports, backed by a few clueless politicians and media desperate for a story, have proposed clampdowns on exotic bet types. Now we all hate match-fixing in sport, don't get me wrong there, but invariably these shenanigans are restricted to betting via illegal bookies, where there is no audit trail for investigators to pick up. Legal betting outlets don't drop the ball very often. At the first sign of suspicious betting, alarm bells go off and word spreads like wildfire. The accounts in question are marked forever and the total exposure involved is usually only a few grand - less than they'll get out of the PR value of the ensuing story! Andrew Twaits says tighter controls on online poker is necessary *snipped* Sportingbet Australia chief executive, Michael Sullivan, called yesterday on professional sports under the Coalition of Major Professional and...

Betfair's share price is up 35p this morning, including a recovery from a 20p drop after a climb of 40p in the first two hours of trading, after it fell to a new low of 752p last week. Here's one for you - how would you price up "First to leave their post - David Yu or Sepp Blatter?" The Czech lottery company Sazka has been declared bankrupt by the Prague Municipal Court . Surely there is something seriously wrong here - perhaps they should have spoken to FIFA about to keep a corrupt organisation in operation?? Centrebet shareholders are expected to support the Sportingbet buyout bid afte the Kafataris family and the board put their weight behind it. Spain’s new gaming law has been officially published in the country’s State Gazette and will be enforced subject to European Commission approval. In case you've missed it, the US Department of Justice is going after more than just the biggest US-facing poker rooms , with some sportsbooks in its sights as wel...

There's been more than enough proof over the years that this South Australian senator is just a headline seeker when it comes to his views against gambling. I admired his stance against pokies (slots/fruit machines in other parts of the world) which are in plague proportions in most of Australia, but his credibility, if he had any left, is seriously undermined when he gets involved in an argument like this. MP calls for ban on rate-rise betting Betting on the Reserve Bank's interest rates decision should be banned because it ''invites trouble'' and opens the door to corruption, Independent Nick Xenophon says. The Age yesterday reported that a stand-off between the Australian Securities and Investments Commission and online betting agency Centrebet, over betting on interest rate rises, had ended. ''Millions of Australians are affected by interest rate movements. It is not a game for families; for many families it can be the difference between pay...

News this morning that another company is set to launch a bid for Centrebet, the first Australian bookmaker to bet online back in 1997. It has been mentioned here before that the Kafataris family are keen to cash in, but previous interests from European firms have hit a brick wall - perhaps because of issues with Australian government bans on online poker and casinos. Sportingbet have already conquered those restrictions by having a highly successful Australian operation (after they purchased the previously Vanuatu-based No.1 Betting shop) run independently from the main UK base. Sportingbet CEO Andy McIver has long dismissed poker as a 'fad' so it was hardly a sacrifice on that front. Centrebet run casino and poker operations for anyone based outside of Australia. Sportingbet in talks to buy Australian peer Centrebet May 11 (Reuters) - British online gaming firm Sportingbet is in advanced talks to buy Australia's Centrebet International Ltd for about A$175 million ($1...

Sportingbet started the trend by purchasing No1 Betting Shop from Vanuatu and then moving them to Darwin, Paddy Power got into the act by snapping up Sportsbet and IAS, and then Centrebet started preening their feathers in public trying to woo as many prospective buyers as they could. Anecdotal evidence suggests that several other Australian firms are available to buy, as most of the original owners are approaching retirement age. BWin, William Hill, Ladbrokes, 888 and others were mentioned as prospective suitors for Centrebet but it all seems to have gone very quiet lately. BWin have tied up with Party Gaming which should keep them busy plus neither are shy about attracting Australian customers despite laws against online casino and poker operations; William Hill's online division is 29% owned by Playtech, another company with fingers in many bingo, casino and poker pies which reach Australia either organically or by targetted marketing; Ladbrokes are still involved in the bid f...

How ridiculous is a ban on online poker and casinos in a country where the law is openly flaunted, play-for-fun (.net) sites are widely promoted and companies like PokerStars have offices set up there? Australia upholds online gaming ban This is the dilemma in Australia where companies such as Betfair, Centrebet and Sportingbet offer licensed and regulated poker and casino services to punters outside Australia, but by law, can't do so to Australian residents. Yet, the likes of Party Poker and PokerStars can openly advertisely their wares around the nation by sponsoring events and TV coverage through their 'free' sites. Only the extremely daft amongt us, namely Federal Communications Minister Stephen Conroy, believes that these companies do not generate any real money business via this advertising. Australia is one of the biggest markets for foreign poker firms, so all the profits from these companies goes offshore and stays there. This is the same daft politician who is hel...

Recent British press speculation suggested it was almost a done deal but the competition to buy Centrebet looks hotter than ever. William Hill are not the only ones trying to buy Centrebet, and rumour has it they are more than just 'tyre-kicking' several other potential targets Down Under. There are several Australian corporate bookmakers courting potential buyers at the moment and the Leeds-based firm will be at the top of any list for vendors. Sounds like only a matter of when, not if. Stay tuned for who Hills will be buying, and who will be taking over Centrebet, but it may not be the same deal.

As mentioned on this blog previously, Centrebet is very keen to be bought out and some of the big boys of the global industry have been sniffing around. William Hill is believed to have bid A$132m for the company according to this report , although the deal is not exclusive. Ladbrokes and Bwin are still evaluating their own bids. Watch the video on that link to hear the comical pronunciation of Bwin by the Aussie 'never been out of Sydney in my life' presenter. How does A$132m stack up? In 2003, Centrebet was bought by SportOdds (the Kafataris family) for A$46.55m, although Jupiters Casino Group did say they wanted an unrealistic A$150m for it at the time. IASBet changed hands last year for around A$60m (after Centrebet posted a hostile bid for about half that amount). The big variation in cost is the value of the AUD vs GBP - back in 2003, the $46.55m was worth less than £20m. Now on the very strong AUD, the A$132m equates to £80m. Still, it sounds about the right sort of pric...

It may not be Bwin after all, as I predicted a few weeks ago, but the news is out in Australia that several different UK suitors are sniffing around the pioneer of online sports betting, Centrebet. Centrebet rockets on takeover talks SHARE investors piled into Centrebet yesterday as three British gaming companies loomed as potential bidders to take over the listed online wagering and gaming company. ... Analysts said Centrebet -- which is 60 per cent owned by the family of its chief executive, Con Kafataris -- was a good fit for foreign companies wanting to get a stake in the Australian market ahead of expected deregulation. British operators Ladbrokes, William Hill and Sportingbet are the reported overseas suitors for Centrebet and some analysts believe the takeover price could reach $2 a share. The Productivity Commission recently recommended a swag of reforms thought to be favourable for growth in online sportsbooks and casinos in Australia. The Australian market is undergoing major...

Haven't got the motivation for a long post, so here are some brief items about what's going on in the world.... Much of my traffic comes from other bloggers - do you fancy getting a free makeover for your blog? Most of us don't have the design skills to do it, but this guy does, and he has some brilliant culinary tips as well - ZestyCook Mark Davies, MD and one of the originals at Betfair, has a laugh about how bookie CEOs just don't get it and keep on giving Betfair free publicity at every opportunity. The Tasmanian government have reacted to Betfair Aus's idle threats about moving interstate (or was it rumours of other govts luring them) by offering more tax breaks to sustain employment in the Apple Isle. Leading Australian jockey Danny Nikolic could be deep in the brown stuff if the latest stewards investigation into suspicious betting activities on Betfair uncovers any concrete evidence. I'm a big fan of Nikolic, there is no Australian jockey I'd rath...

You'd think bookmakers would know this by now.... The Reserve Bank of Australia was expected by everyone to lift interest rates by 0.25% overnight, making it four increases in a row. Centrebet decided not to offer the market, it was such a 'certainty'. Rate rise a guaranteed certainty Centrebet's Neil Evans says it is the first time the agency has not taken bets on an interest rate decision. "The betting market would have looked horribly lopsided, where the 25 point rise would have been massively odds-on favourite and 50 [basis point rise] the only other possible outcome," he said. "So we decided it was just a very lopsided and uncompetitive betting market, where the chance of rates staying on hold were effectively close to zero." "We don't like putting up markets where you've got two massively odds-on options and then of course everything else is effectively a million-to-one. Not sure how you get two massively odds-on options in a one r...

Just a fortnight ago, I reported on Centrebet touting itself for a sale . Where there's smoke there's fire they say, and word is coming from good sources that the company is about to be swallowed up by the global giant Bwin. Expect both companies to keep tight-lipped about it until they have to release it to their respective shareholders and stockmarkets. PartyGaming had been sweet-talking Bwin for sometime about a merger, does this mean they will go back to chasing Ladbrokes again? Interesting times in the gambling world. You heard it here first.

Could Con Kafataris and family, majority owners of Centrebet, be ready to sell up and get out of the bookmaking business? This report seems to think so: Centrebet keen to join forces BOOKMAKER Centrebet has confirmed it is looking to buy a competitor or be taken over after its surging share price drew a speeding ticket from the stock exchange. The ASX yesterday asked Centrebet to explain a 21 per cent increase in its share price -- from $1.32 at close of trade last Wednesday to a high of $1.60 during trade yesterday. ... Several potential buyers are reported to be circling Centrebet, with controlling shareholders the Kafataris family said to be willing to sell their 60 per cent stake if the price is right. ... Centrebet has reportedly been eyeing some of the industry's smaller players, while global operator Ladbrokes is said have considered making a bid for Centrebet. Centrebet shares closed yesterday up 8.57 per cent at $1.54. Interesting developments. Centrebet can't get a lo...

In Australia, the three main zones for corporate bookmakers are the Northern Territory (home of Centrebet, Sportsbet, Sportingbet, IASBet and numerous others), Tasmania (home of Betfair Aus) and the ACT (home of Sportsalive). When I say home, it's at least where their servers are based and a handful of staff - most have marketing and other departments based in Melbourne or Sydney. These three regions, two territories and Australia's smallest state, have little industry to speak of and need businesses in their region for employment, taxes etc. And they also have no deep-seated allegiance to TABs like the bigger states such as Victoria and New South Wales. Internet bookmakers in NT welcome tax change Tasmania recently threw the cat amongst the pigeons by scrapping the local tax on corporate bookmakers and adopting a $250k annual flat fee, a very attractive prospect for major firms turning over hundreds of millions per year. This was brought on by Betfair's five-year licence b...

This might seem second nature in the UK but it's a new development in Australia. On-course bookies had to be just that, and while recent law changes had allowed local bookmakers to form companies and trade 24/7, that was only if they were on track within that state. Now Victoria has allowed Centrebet, Sportsbet, and the big one, TABCorp trading as TAB Sportsbet, to work on the rails. Bit controversial they have been allowed to queue jump and not be subject to the normal procedures of Victorian bookies during spring carnival time, but it's hardly surprising. TABCorp goes on the rails TABCORP will join the Flemington rails as an on-course bookie for the first time on Derby Day. Tabcorp has won approval from the Victorian Commission for Gambling Regulation to short-circuit Victoria Bookmakers' Association rules to gain a rails berth. Derby Day, this Saturday at Flemington, is the best day of domestic racing anywhere in the world. Quality from start to finish, and over 100,000 ...

Snippets from the Aus financial wires.. Tabcorp share assessment Tabcorp's only NT wagering arm, Luxbet, set up to take on the likes of Centrebet and Sportsbet, isn't yet making money and the win rates aren't where they should be. But Luxbet has accrued 23,000 customers and Funke Kupper claims its brand recognition is up there with the likes of Centrebet. Funke Kupper is taking a “fight them on the beaches” approach to customer retention, especially in wagering. “It's really important we stand in the market place,” he declares. “We will take people on, even though it's not necessarily cheap for us.” The rumours were that Luxbet was set up with bottomless pockets in a concerted effort to take market share away from the likes of Centrebet, Sportingbet, Sportsbet, so that backs up the theory. Tote Tasmania may sell for A$300m next month Four companies -- Tabcorp Holdings Ltd., Tatts Group Ltd., U.K.-based Ladbrokes Plc and Greece’s Intralot SA -- are on the short-list ...

Betfair's sponsorship of racing in Australia now totals over 20 tracks in three states with this venture into South Australia. Betfair seals sponsorship of SA Derby Other firms have been getting into the act too - Centrebet and Sportingbet have sponsored quite a few races as well. But of course, NSW racing misses out because of an anti-competitive exclusivity arrangement between Racing NSW and Tabcorp. No wonder racing people are struggling north of the Murray River...