Betfair interims today

[Gordon McIvor Wilson]

Have a look at this seasonal sparkler from Betfair on their corporate site at: http://bit.ly/e2Ipoc

The boss, Mr Yu, predicts years of strong growth generated from: "... well-invested technology platform position the Group strongly for growth in the years to come, together with the potential for significant margin enhancement in Core Betfair."

That's price rises for you and me, chaps!

[Adonis First]

Believing, as I do, that betfair have fundamental, revenue-jeopardising structural faults, you'll hardly be surprised to hear that I wouldn't invest in them even with proverbial "stolen money"!

Fundamental problem?

IMHO, betfair have focussed on nurturing an elite portion of their Customer base - those wanting to abstract profit from the process of Punters who wish to bet (and/or lay) a selection then wait for the Result of the Event.

It has to be conceded that betfair have very successfully built their current scenario by favouring that elite at every opportunity, and IMHO, at the perpetual expense of mere Punters who go there in search of a better deal.

 

It is illogical to claim that Punters at betfair get a poorer deal, there, than by betting via traditional Tote or bookmaker methods. They just don't, IMHO, get the best possible deal. Yet.

I regard betfair's business model as highly vulnerable to calamitous breakdown, because sooner or later I expect Punters to realise that it is THEIR cash which powers betfair (not the cash of "traders" or "spivs") and that they can eliminate the huge outflow of Abstracted Funds to these parasitic elements by taking their business to an alternative Exchange .......... where such practices (though not outlawed) are fraught with the financial peril they ought to engender, but are exempted from at betfair!

 

Pivotal to it all is the fact that betfair do not specify a minimum "lifetime" of all offers submitted for matching. Which means that if they are (rapidly) cancelled, they can appear to be available, but in fact, are not! Betfair actually provide a high-speed software interface (their "API") to enable all sorts of software tactics to facilitate such processes!

(I continue to be dumbfounded that the Gambling Commission, though aware of this situation, continue to allow it. Reportedly becasue "betting exchanges have a Bookmaker's Permit"! - a Licence to print money? Other peoples money?)

 

So, until an Exchange arrives with pro-Punter Rules as described, it is feasible that betfair will maintain what I regard as a Virtual Monopoly by being more efficient than other betting alternatives. But when faced with said Competitor, betfair will find itself fundamentally handicapped from competing - just as conventional bookies have been for the last ten years. You might regard it as a natural progression of competitive betting.

Inevitable, I feel; but the fine detail of the Timeline is unclear right now.

 

[Gordon McIvor Wilson]

Come on folks, give SP a bit of a blast  http://bit.ly/fpeeFA

 

Adonis, you must have the answer here? £6/share for Christmas?

[Gordon McIvor Wilson]

 

Pyramids on sand?!  Solid as a rock compared with some financial structures we have seen of late. Iceland, Ireland, Greece.... Give me a good solid Betting Exchange anytime!

[Adonis First]

All pyramid deals seem to be founded in Egypt..... on SAND foundations!