30-01-2007 Betfair launches constitutional challenge in Australia

As anticipated by Bookmakers Review on January 11, the world's largest betting exchange has launched a High Court action against the Government of Western Australia, which yesterday proclaimed the new legislation that makes illegal for Western Australian residents to use betting exchanges, effectively preventing Betfair from operating in WA.

According to Betfair, which is licensed in Tasmania, the new anti-betting exchange law is in breach of the Australian Constitution.

"Betfair has been left with no choice but to challenge the WA Government's attempts to restrict free trade between the States," said Andrew Twaits, Betfair's Director of Corporate and Business Affairs.

Speaking at last week's Asian Racing Conference in Dubai, industry experts said that racing was not keeping up with online poker and online sports betting. The chief executive of the Hong kong Jockey Club proposed co-mingling bets on major pools around the world as a way to embrace competition and promote racing branding globally.

Greg Nichols, Betfair's Sporting Affairs Managing Director, criticized the decision to bar him from the conference at three days’ notice. Nichols blamed his exclusion on the Asian Racing Federation chairman’s "paranoia" over betting exchanges. "Racing around the world has enough problems and we need every minute to discuss those without being distracted," said the chairman of the Asian Racing Federation.