Betfair submits proposal to National HBPA

[Betfair]

Betfair began the process of clearing another hurdle toward making exchange wagering a reality in the U.S. when it met with the National Horsemen’s Benevolent and Protective Association on Wednesday and proposed a revenue model based on the wagering type.

Stephen Burn—director of horseracing for Betfair and chief executive officer of Television Games Network, which Betfair acquired in January 2009—said he was encouraged by the first discussion of a revenue split but would not divulge details of the proposal.

National HBPA Chief Executive Officer Remi Bellocq shared Burn’s enthusiasm for the meeting but indicated his group would not have any comment until having more time to digest the numbers.
“I’ll let them get into details, but they understand our concerns, and really our concerns are racing’s concerns,” Bellocq said. “Our standard operating procedure is we’ll sit down with core group of folks, listen, and evaluate. We agree that exchange wagering can provide customers an exciting opportunity, but the question is whether Betfair’s way is the best approach.”

Currently exchange wagering is permissible in California and New Jersey, but racing regulators in neither state have established rules governing the style of bet that allows people to bet directly with each other. Burn said Betfair had been bullish on New Jersey coming online in time for the Monmouth Park meeting that begins May 14, but the state’s interest in leasing its tracks to other operators has put regulating exchange wagering on hold.

Exchange wagering in California meanwhile cannot come online until May 2012, pending regulatory approval, and even with the delays in New Jersey, Burn expects the Garden State to beat the Golden State to this particular punch.

“This is the first time we’ve put numbers out in front of a group for public discussion,” Burn said of the HBPA meeting. “These are not take-or-leave numbers, though. We’re coming to the market with ideas and we’ll see where it goes.”

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