Betfairs court victory stings Western Australia taxpayers
Western Australia’s tax payers are being left to foot a potential $500,000 High Court fee, after gambling exchange company Betfair successfully challenged the WA law prohibiting residents from placing bets using online exchanges.
Since the turn of the century, punters from around the world have been able to use Betfair’s online exchange to place odds on horse races, sporting events and even future terrorist attacks. In November 2005, in its continued effort to expand, Betfair received and capitalised on their license to operate in Tasmania, Western Australia.
The success of Betfair and similar online exchanges come from the increased betting potential and its variety. Punters are able to bet on their favourite teams or horses even when they stand little chance of winning, or bet on the next global disaster or even the next assassination. The important thing is not just to pick the winning horse for example, but betting on the correct outcome whatever it may be. Such a strategy of betting considerably raises the scope for betting options and as long as the punter has an opposing bid, the bet will always be on.
Developments within online exchange betting however have not been easy. The prospect of terrorists making potential monetary gains through their own attacks for example, doesn’t bear thinking about, but this possibility among others has not stopped the likes of Betfair from succeeding and steadily spreading their wings.
Online exchanges, highly popular amongst the punters appear to raise considerable concerns amongst authorities. Despite being infamous for their laid back approach, the Australian authorities have come to view online exchanges as an undesirable addition to their existing gambling industry. Greatly reflecting the feelings amongst the US Government in the WTO battle with Antigua, Betfair and other online exchanges are being accused of being freeloaders from the racing industry, avoiding taxes and contributing nothing to the racing facilities themselves.
It was such fears that bought about changes in the Western Australia law recently causing online exchange betting to be outlawed.
Under the changed law, both the actions of the service user and the provider were deemed criminal leaving any punter caught using online exchanges subject to AUD$10,000 fine or imprisonment for up to two years
Betfair was not slow on the uptake in responding to this change and quickly followed it up with a plea to the Australian High Court.
The Betfair vs WA case, well on its way by the end of last year, proved to be of great interest. During the proceedings, the judges were carefully shown how to place a $10 bet using the online exchange which earned the remark “this is getting interesting … I might get addicted” from Justice Michael Kirby. Justice Susan Crennan on the other hand highlighted the difficulty of monitoring collections of lay bets, stating that such betting strategies would undoubtedly concern the authorities and the integrity of the racing industry. However, based on the argument that the law contradicts section 92 of the constitution in which it states trade between states should be “absolutely free,” the defendant representative, Mr Gageler led Betfair to a euphoric victory.
As a result of their loss, WA authorities remain with the considerable sized court fee whilst Betfair are free to resume business as normal. Racing and Gaming Minister Ljiljanna Ravlich, in charge of the remaining affair, has taken more than an honest approach to this debt, openly stating “I’d say it would be in the order of probably the half a million mark (AUS dollars) if that, probably less,” for which tax payers are likely to take the buck.
While Betfair leave victorious from Tasmania, their problems are far from over. Already in Victoria, Australia they are involved in another controversy. Bookies are being banned from betting with Betfair on course with authorities threatening to revoke licenses from the bookies should they continue to do so.
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admin :: May.28.2008 :: Gambling Info :: No Comments »