A spokeswoman for Australian Communications Minister Helen Coonan dismissed criticism from Queensland and Western Australia and said it was a state problem which has nothing to do with the federal government.
“The states and territories can act on licensing issues falling within their own jurisdictions relating to interactive wagering and betting exchanges,” she said.
“Industry issues, including revenues flowing to and the integrity of the racing industry, are a state-based jurisdiction.”
Queensland Racing Minister Robert Schwarten and Western Australia Racing and Gaming Minister Mark McGowan said the federal government should have stopped the Tasmanian Government from granting a license to Betfair as the states are set to lose millions in revenue from racing.
Tasmanian Premier Paul Lennon has defended his decision to approve the licensing of Betfair as the betting exchange was already operating in Australia, it was preferable to regulate its activities and gain a revenue stream from its operations.
“Betfair already operates on Australian racing. It is not regulated at the moment but is operating a service for punters,” said Lennon.
“The Australian Racing Board is prepared to sit back in full knowledge this is operating and not want to regulate it.”
“Thirty five per cent of the gross profit will come to us. We will keep five per cent and pass 30 per cent on to the racing industry.”
In separate news, Betfair has been named Socially Responsible Operator of the Year in the inaugural eGaming Review industry awards.
The judges of the eGaming Review awards, which included the industry\’s leading lawyers, analysts and journalists, decided that Betfair “won by a length” for the following reasons: robust age and identity verification systems, new initiatives such as URU, a multiple-database Know Your Customer checking system and continuos efforts to stop corruption in sport and to rescue Sporting Options’ punters.
Referring to Betfair’s £3.9m rescue package for Sporting Options’ punters, the judges said it went beyond pure commercial logic and reflected a determination to protect and enhance the credibility and responsibility of the industry as a whole.
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