Betfair Takeover On the Horizon?

[Robert Goren]

Originally Posted by ronsmac

you make a good point about the states share of the takeout, but in many states they take a very small percentage. in Maryland for example the take out in the early 70's was 15 percent, wow this the percentage with 5.34 going to the state.Around 1980 or so, the state lowered their share to 4.09% yet the takeout went up, 17%wps,19%ex 25%tri. Then in the late 80's, the state dropped their share to 0.5%. of course there was no reduction in the take out to the player. on top of that in the 90's, the state gave approximately 7 million subsidy to purses. When that wasn't renewed, they just raised the takeout again.
so basically what I'm saying is the states share never seemed to factor in their choice of raising or lowering the take out.

I to look into this several years ago. It is hard info to find. What I did find is that almost all states take less than 2% .Most states barely cover the cost of regulating the industry. 50 years ago states took 5% . They had a total takeout of 11-13% on all pools back then. The almost of all the increase in the takeout over the years has gone to purses. What happened in Maryland mirrors what happen in Nebraska (but no subsidy) and I suspect that is what happen in many states.

[davew]

Originally Posted by Twenty Seven

Liquidity on the prime hours -- after English racing is finished and before they pass out, about 4 hours in total -- is still excellent, often about $100,000 a race, traded (so, $50,000 total for one side of the position). Tighter margins, yes, and the money is now much smarter and less volatile, but all the other benefits still hold (minus the added draconian premium charge).

Your second point is ridiculous. It took me 5 months to learn position taking, trading, market setting, others' tactics, when to get in, when to get out, exposure limits, and the like. And I'm approaching old-timer status. Younger people were and are brought up on quick-moving computer tickers/functions. They'll have no problem figuring it out.

What I was referring to was if the plan was to eliminate parimutual completely and go with exchange wagering exclusively. The vast majority of the present parimutual pool is not from 'day traders' watching odds movement on one win pool market.

[Twenty Seven]

Originally Posted by davew

What I was referring to was if the plan was to eliminate parimutual completely and go with exchange wagering exclusively. The vast majority of the present parimutual pool is not from 'day traders' watching odds movement on one win pool market.

But it's not either/or.

There are plenty of position takers in the moving win pools at Betfair. I do both. If there's great value in betting a particular horse or horses to win or lose, it's often better to let it ride than it is to trade out and take a small profit no matter what happens. Those who want to do what they're doing right now in the parimutuel win pools can do the same thing on a liquid exchange.

[Some_One]

Originally Posted by davew

What I was referring to was if the plan was to eliminate parimutual completely and go with exchange wagering exclusively. The vast majority of the present parimutual pool is not from 'day traders' watching odds movement on one win pool market.

Not possible, you cant use exchanges for Exotics. Also if you look to the UK or Aus, you have the Win/Place pools side by side but also there the tracks don't run their totes, it is 3rd parties plus independent bookmakers.

[PaceAdvantage]

The Board of Betfair has reviewed the Proposal with its advisers and rejected it on the basis that it fundamentally undervalues the Company and its attractive prospects, and is highly conditional. The Board is confident in Betfair's strategy and growth prospects as it goes through an exciting phase of delivering the new focused strategy announced in December 2012 and improving the Company's financial performance. Following the completion of its financial year ending 30 April 2013 , the Company will provide an update at the time of its post close statement on 7 May 2013 on the good progress in the implementation of its strategy, including cost efficiencies, and recent trading performance.

The above was part of a release that just crossed the news wires...

[usedtolovetvg]

They're looking for a better (bettor) deal. Stay tuned. It ain't over just yet.

[edmond1]

"The Board of Betfair has reviewed the Proposal with its advisers and rejected it on the basis that it fundamentally undervalues the Company and its attractive prospects, and is highly conditional. The Board is confident in Betfair's strategy and growth prospects as it goes through an exciting phase of delivering the new focused strategy announced in December 2012 and improving the Company's financial performance. Following the completion of its financial year ending 30 April 2013 , the Company will provide an update at the time of its post close statement on 7 May 2013 on the good progress in the implementation of its strategy, including cost efficiencies, and recent trading performance."

Countries are throwing them out. Looks like U.S. will be a failed attempt.... and growth prospects look good ???? They should be looking over their shoulders - Betdaq slowly picking up since Ladbrokes takeover.....