California exchange betting delayed until 2013
Announcement by the Thoroughbred Owners of California ends Betfair's hopes of launching site this year.
Betfair’s plans to open a betting exchange in the US have been scuppered after the Thoroughbred Owners of California (TOC) delayed a vote on whether to allow the product until next year.
The delay represents a blow to Betfair, which acquired horse racing TV and wagering network TVG for US$50m in 2009 with a view to launching a betting exchange in California as soon as it became legal to do so. It had anticipated being given the green light this year.
A spokesman for Betfair said the company was “extremely disappointed” with the decision of the TOC board.
“Betfair TVG has made a substantial investment in Californian racing over the last three years and the launch of exchange wagering would guarantee increased revenue and prize money for the industry. We continue to maintain that the proposal put forward by Betfair TVG provided the most beneficial solution for Californian racing and its customers and we will continue to work with all participants in the process to bring exchange wagering to the state.”
Plans for exchange betting have long divided opinion among racing stakeholders in California, in particular the ability to bet on a horse losing.
Mike Pegram, chairman of the TOC, said in a statement: “The concept of exchange wagering has been a polarising issue among the stakeholders in California racing, and this action will give us additional time to study this betting alternative and consider if it is in the best interests of the industry in our state.”
The announcement followed the news that the TOC had broadened television distribution of California racing by approving a proposal whereby Stronach Group Racing enter into a reciprocal agreement with TVG to broadcast race meets previously exclusive to each other.
Lou Raffetto, president of TOC, said: “While we are pleased to have accomplished this long-sought-after goal, we will continue to seek alternative revenue sources and have not slammed the door closed on the concept of exchange wagering. We are simply putting this contentious issue on the back burner until we can analyse it further and, hopefully, build a consensus within the industry.”