Betfair exits Australia, but doesn’t
After months of speculation and a ducked question on the last conference call, Betfair confirmed this morning that they have exited Australia, but not entirely.
In a press release issued first thing this morning Betfair stated: –
BETFAIR GROUP PLC (“Betfair”) today announces that it has sold its 50% stake in Betfair Australasia Pty Limited (“Betfair Australia”) to joint-venture partner Crown Resorts Limited (“Crown”, ASX: CWN).
Betfair has concurrently entered into an agreement with Crown to continue to provide its betting exchange in Australasia under a B2B model and will receive a share of revenues generated by the exchange in those markets. Under the agreement, customers of Betfair and Crown will continue to benefit from pooled liquidity arrangements.
Betfair Australia was formed in 2004 as a 50/50 joint venture between Crown and Betfair. Betfair received AUS$10m as consideration for its equity stake and Betfair Australia repaid Betfair’s shareholder loan earlier than scheduled.
Commenting on the deal, Betfair Chief Executive Officer Breon Corcoran said:
“We are pleased to have signed a long term agreement that facilitates Betfair’s continued participation in the fast growing, licensed Australian market alongside a partner with a strong local presence. This represents an extension of Betfair’s B2B operations and is a new and profitable operating model for the exchange.”
So a slightly confusing message. Betfair have exited Australia and handed the strategic reigns over to Crown, but the exchange will live on as a revenue share. It’s not clear how much say Betfair’s management will have on it’s long term direction. But at least the exchange lives on for the moment.
Category: Betfair
