Financial analysts are preparing for a market frenzy as it becomes increasingly likely that bet exchange giants Betfair are considering a 1.5billion pound flotation. Founders Bertie Black and Ed Wray, who still own a 25 per cent stake in the company, have agreed to consult bankers about the group’s options as it bids to consolidate its prominent position in the global betting and gaming industry. The news is significant in that the company could be the first major stock market listing to be finalised since the UK officially entered recession. Black and Wray stand in line for a multi-million pound dividend if Betfair is listed with Japanese investment bank SoftBank, the company’s other major shareholder, also set for an early return on their investment of around £355million. More than two billion bets were matched on Betfair in the last financial year, realising a pre-tax profit of approximately £72million, and with President Obama now thought to favour a move to open up the US betting markets sooner rather than later, new investors would free up money to fund acquisitions in the States as soon as legislation allowed.
The Pakistan cricket spot-fixing scandal continues to hog the headlines and it seems it may have long-lasting repercussions in neighbouring India. A hot bed for illegal gambling, there are now reports that the government in New Delhi is considering legalising off-course gambling in an attempt to stop the flow of money from back-street bookmakers to crime syndicates. The Indian government would, of course, also benefit from the tax revenue any move would generate.
Back to more mundane, or should that be less far-reaching, matters with the news that Ladbrokes are already offering a non-runner/no bet scenario on the St Leger. The season’s final classic takes place at Doncaster on Saturday with a larger field than usual expected to face the starter. The sponsors currently have York winner Rewilding as their 7/4 favourite.
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