AU Crown Resorts to Have Full Ownership of Betfair Australia
Australia's Crown Resorts and Casino is reportedly making a move to take full control of UK-Betfair's Australian online betting exchange operations. This is the latest development pertaining to persistent reports about Crown and Betfair's on-and-off talks about a buy-out deal.
A Fairfax Media source provided information that Aussie business tycoon and owner of Crown Casino, James Packer, is firm on his intent to buy Betfair out of its fifty percent share as far their joint venture is concerned. The takeover would give Crown full control over the bookmaker's Tasmanian licence, which denotes having full authority to modify Betfair's betting exchange system into the more lucrative fixed-odds betting model.
The Betfair Group, on the other hand, is said to be keen on dumping its fifty percent share to Crown, in light of its failure to bring the expected return on investments. Although Betfair Australia posted revenue growth for the fiscal year ending April 30, 2013, the commissions gained from betting exchange transactions were still not enough to take the Aussie-based operation out of its losing streak. The betting company's 2013 financial report shows a $1.6 million loss, the sixth incurred since it started operating in Australia in 2007. The negative figure brought the total Australasia operating losses to as much as $47.3 million to date.
Financial analysts in Australia opine that Australia's AU$26 billion gambling industry has shown signs of departing from the conventional totalisator betting system, as indicated by the upward trend of turnovers gained from fixed odds wagering. Even the online betting sites that offer fixed-odds betting options, saw their profits increase by as much as 16 percent, roughly estimated at around $3.7 billion.