An article for TheMediaBriefing, on the parallels between the success of the newly public Betfair Loading... - and the criticism it attracts - and digital media companies like Google Loading... . Here's an excerpt...
Betfair revenue was up 13 percent to 341 million in 2009/10. The technology underpinning the system is second-to-none. The company claims that in the year toApril 30, it averaged more than five million transactions per day -more than all the daily transactions conducted on European stock exchanges put together (via Marketwatch).
All is going swimmingly.
So no surprise then that the incumbant betting scions are not happy. William Hill's CEO Ralph Topping wants Betfair to reveal more about its algorithm and, specifically, who bets on the site (via Telegraph.co.uk). And check out this diatribe from the British Horseracing Association, which wants Betfair to contribute more cash to the sport:
"We would entirely agree that Betfair has been 'disruptive' and 'fundamentally changed the sports betting market'. Whether intended or not, it has certainly disrupted British Racing's finances, and has created severe consequences. It has indeed, for its customers, 'eliminated the need for a traditional bookmaker', and markets itself as 'cutting out the middle man'. At the same time Betfair has argued it should be treated as a traditional bookmaker for the purposes of its contribution to our sport. Betfair cannot have it both ways."
Sound familiar? Anyone that has been watching the news industry's reaction to Google's rise in the last decade will recognise this argument, which is essentially: "You're spoiling this for everyone because your system is more efficient, effective and innovative than ours."
Read the post in full right here.
- Betfair gets off to a flyer, though the race is only half run (telegraph.co.uk)
- British Horseracing Authority's Paul Roy invests in Betfair (telegraph.co.uk)
- Betfair's 1bn flotation reignites racing row (telegraph.co.uk)
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