Betfair, Breeders’ Cup reach deal on wagering revenue - Horse Racing Forum - PaceAdvantage.Com

gm10 · 10-22-2009, 08:00 AM

In a landmark agreement, Breeders’ Cup Ltd. will receive revenues from exchange betting on Betfair for the first time this year.

Breeders Cup and Betfair announced the landmark agreement on Thursday morning, in a deal that also provides Betfair’s 2.5-million customers with access to the Breeders’ Cup pari-mutuel pools.

http://www.thoroughbredtimes.com/nat...g-revenue.aspx

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I predict Betfair to have a turnover of more than 20 million for the Breeders Cup. It is live on TV, now it is live on Betfair, and the event is very popular in Britain/Europe.
Not sure how much BC will get but it might be a nice chunk of change.

andymays · 10-22-2009, 08:42 AM

Sorry for the duplicate thread gm10. Have asked to have it deleted! I changed it to a Calder thread!

http://www.paulickreport.com/blog/be...p-strike-deal/

Excerpt:

Betfair, which revolutionized betting nearly a decade ago through the creation of exchanges pitting one person against another, has reached a breakthrough agreement with the Breeders’ Cup, providing Betfair’s two million-plus worldwide customers access to commingled pari-mutuel pools and allowing the company to offer live video streaming of the Nov. 6-7 world championships to its exchange betting players. The deal was announced in London Thursday by Breeders’ Cup president and CEO Greg Avioli and Betfair director of horseracing Stephen Burn.

The Breeders’ Cup will receive an undisclosed fee from Betfair as a result of the agreement, and the deal promises to bring international wagering on the event to a new level. Betfair, along with other exchange betting companies and overseas bookmakers, has previously offered wagering on Breeders’ Cup and other American races of interest (though supposedly not to residents of the U.S.), but the wagering or live video streaming has never been officially sanctioned by the host racetrack or association, and no revenue has ever flowed back to America.

rrbauer · 10-22-2009, 10:19 AM

There goes the prices on the Euro horses.

Horseplayersbet.com · 10-22-2009, 10:30 AM

Interestingly, Betfair has blocked Canadians from using the parimutuel service.

It is the first time I've seen a restriction on Canucks on Betfair.

Canadians can still use the betting exchange though.

OTM Al · 10-22-2009, 10:42 AM

Quote:

Originally Posted by rrbauer

There goes the prices on the Euro horses.

After last year they weren't going to be there anyway. This could actually turn things so the US horses become overlays. Could make for some very interesting races in terms of payoffs

gm10 · 10-22-2009, 11:23 AM

I think there may be some confusion.

Betfair organizes its own betting market, which is completely independent of the parimutuel pools. BC will get a slice of this market and in return offers a video feed to Betfair. It is a big market. I think American tracks have been been really dumb for passing up on this opportunity for so long. The Betfair win markets are sometimes bigger than the parimutuel win pools (expecially on weekdays).

Because it is its own market, the parimutuel payouts will not be affected by any Betfair exchange betting (although technically, BF customers can bet into the pools as well, but let's not complicate things).

The Betfair market is run like an exchange: one party is betting the horse to win, the other party is betting the horse to lose. When both parties agree on the odds, there is a bet. So it's a one-to-one mechanism, unlike the pools where the odds are derived from the total amounts bet on each horse.

For example, in the BC Classic market, you can bet on Rip Van Winkle to win or lose. If you bet him to lose, and he wins, you'll have to pay out the person on the other side of the bet. If you bet him to win and he wins, your winnings are just like they would be in a normal bet, but at the odds you've agreed to of course.

nearco · 10-22-2009, 11:36 AM

Exchange betting is Peer to Peer betting. Basically it allows you to be the bookie, i.e you can accept (lay) bets. Anyone who signs up and opens an account can offer odds and accept bets up to the amount on money in their account. If you had a $1000, you could accept up to $250 worth of bets on a given horse at 4/1.

The exchanges have revolutionised betting in UK and Ire, but they are not without controversy. The fact that you can back a horse to lose does not sit well with some people, esp if you can do it over the relative anonymity of the internet. The head of the BHA (British Horseracing Authority) said in the High court just the other day "laying horses is corrupt" and bad for the game.

I doubt you will see too many of the Betfair customers availing of the interemingling of the pools. As a rule they don't like pool betting, preferring fixed odds. Can't blame them, I would be the same if I had the choice.

the_fat_man · 10-22-2009, 11:47 AM

This will probably buffer the blow for the BC, with all the PA POLY HATERS sitting this edition out.

rrbauer · 10-22-2009, 12:18 PM

Quote:

Originally Posted by gm10

I think there may be some confusion.

Betfair organizes its own betting market, which is completely independent of the parimutuel pools. BC will get a slice of this market and in return offers a video feed to Betfair. It is a big market. I think American tracks have been been really dumb for passing up on this opportunity for so long. The Betfair win markets are sometimes bigger than the parimutuel win pools (expecially on weekdays).

Because it is its own market, the parimutuel payouts will not be affected by any Betfair exchange betting (although technically, BF customers can bet into the pools as well, but let's not complicate things).

The Betfair market is run like an exchange: one party is betting the horse to win, the other party is betting the horse to lose. When both parties agree on the odds, there is a bet. So it's a one-to-one mechanism, unlike the pools where the odds are derived from the total amounts bet on each horse.

For example, in the BC Classic market, you can bet on Rip Van Winkle to win or lose. If you bet him to lose, and he wins, you'll have to pay out the person on the other side of the bet. If you bet him to win and he wins, your winnings are just like they would be in a normal bet, but at the odds you've agreed to of course.

You're right about the confusion....the issue is: Who's confused?

"The Breeders’ Cup and Betfair Group Ltd. announced Oct. 22 they have reached an agreement permitting common-pool wagering on this year’s World Championships Nov. 6-7 during the Oak Tree at Santa Anita Park meet.

It will mark the first time wagers placed by the more than 2.5 million Betfair customers worldwide will be commingled into Breeders’ Cup pools.Breeders’ Cup will receive “agreed revenues from Betfair’s tote and exchange betting on the Championships,” according to a release."

http://www.bloodhorse.com/horse-raci...mulcast-accord

No question that there will be action across Betfair that is exchange-based and won't hit the PM pools. I think it's "wait and see" as far as how much action goes into the pools from Betfair clients.

nearco · 10-22-2009, 12:24 PM

Quote:

Originally Posted by rrbauer

You're right about the confusion....the issue is: Who's confused?

"The Breeders’ Cup and Betfair Group Ltd. announced Oct. 22 they have reached an agreement permitting common-pool wagering on this year’s World Championships Nov. 6-7 during the Oak Tree at Santa Anita Park meet.

It will mark the first time wagers placed by the more than 2.5 million Betfair customers worldwide will be commingled into Breeders’ Cup pools.Breeders’ Cup will receive “agreed revenues from Betfair’s tote and exchange betting on the Championships,” according to a release."

http://www.bloodhorse.com/horse-raci...mulcast-accord

So the BC will also get a cut of the exchange bets placed on Betfair? That's a major coup for the BC if true. Not sure why Betfair would have to agree to that though. There's exchange betting on American racing every day of the week, but none of that revenue goes to the tracks where the races are bet on.

startngate · 10-22-2009, 01:05 PM

Quote:

Originally Posted by nearco

So the BC will also get a cut of the exchange bets placed on Betfair? That's a major coup for the BC if true. Not sure why Betfair would have to agree to that though. There's exchange betting on American racing every day of the week, but none of that revenue goes to the tracks where the races are bet on.

They agreed to it to get the video signal.

gm10 · 10-22-2009, 01:34 PM

Quote:

Originally Posted by nearco

Exchange betting is Peer to Peer betting. Basically it allows you to be the bookie, i.e you can accept (lay) bets. Anyone who signs up and opens an account can offer odds and accept bets up to the amount on money in their account. If you had a $1000, you could accept up to $250 worth of bets on a given horse at 4/1.

The exchanges have revolutionised betting in UK and Ire, but they are not without controversy. The fact that you can back a horse to lose does not sit well with some people, esp if you can do it over the relative anonymity of the internet. The head of the BHA (British Horseracing Authority) said in the High court just the other day "laying horses is corrupt" and bad for the game.

I doubt you will see too many of the Betfair customers availing of the interemingling of the pools. As a rule they don't like pool betting, preferring fixed odds. Can't blame them, I would be the same if I had the choice.

This is true to some degree. However, Betfair is not a suitable platform for anything more exotic than the exacta - I think Betfair and the tote complement each other well.

gm10 · 10-22-2009, 01:46 PM

Quote:

Originally Posted by rrbauer

You're right about the confusion....the issue is: Who's confused?

"The Breeders’ Cup and Betfair Group Ltd. announced Oct. 22 they have reached an agreement permitting common-pool wagering on this year’s World Championships Nov. 6-7 during the Oak Tree at Santa Anita Park meet.

It will mark the first time wagers placed by the more than 2.5 million Betfair customers worldwide will be commingled into Breeders’ Cup pools.Breeders’ Cup will receive “agreed revenues from Betfair’s tote and exchange betting on the Championships,” according to a release."

http://www.bloodhorse.com/horse-raci...mulcast-accord

No question that there will be action across Betfair that is exchange-based and won't hit the PM pools. I think it's "wait and see" as far as how much action goes into the pools from Betfair clients.

Yes, that is a bit ambiguous.

Betfair offers two different gambling mediums. The first one (by far the biggest) is the betting exchange. But they also allow you to bet directly into the pools.

This press release is about Betfair offering part of the exchange revenue to BC in return for the video.

We agree that you cannot put the exchange money in the pools. It is technically true that the 2.5 million exchange customers will have access to the pools. But only a minority will, so the parimutuels prices won't be affected that much.

DeanT · 10-22-2009, 01:51 PM

In Australia when they allowed BF into the pools parimutuelly there was a 30% handle jump in pari-mutuel as customers took advantage of cross platform betting. I would doubt that this would result in anywhere near that, but for certain some punters will take a shot at the pick 4 and pick 6 monster pools. There are billions of dollars in the float balance, so that money is now in play.

gm10 · 10-22-2009, 01:51 PM

Quote:

Originally Posted by nearco

So the BC will also get a cut of the exchange bets placed on Betfair? That's a major coup for the BC if true. Not sure why Betfair would have to agree to that though. There's exchange betting on American racing every day of the week, but none of that revenue goes to the tracks where the races are bet on.

They get the video, as someone else said, but I think this is mainly about getting a big foot in the door.

If Betfair can convince cash-strapped race tracks and state governments that they can make them a few easy millions, then Betfair have taken a huge step towards cracking the American market.