The Betfair IPO - coming to a market near you

[Gordon McIvor Wilson]

John (J2O, the sober member) asked the question:
How do people feel BETFAIR and the BETFAIR IPO will be affected by the emergence of new exchanges such as SMARKETS, MATCHBET, and AIX?

Our best informed commentator member, Adonis the 1st, answered the question in unequivocal terms:

No effect at all;
betfair is a virtual monopoly. I suspect that the number of former
betfair Customers who wouldn't buy betfair shares even with stolen
money is larger than most might imagine.
But not buyng shares for those reasons is also hardly likely to affect the IPO.
This is the company that in 2008 publicly admitted that it had been
covertly taking cash from its processing of Customer bid and lay Offers
(that process is by definition, the establishment of Fair Market Value
- a dynamic variable). betfair said at the time that it did so "at zero
risk" to itself. The cash came from Customers, NOT commission. I have
heard NO THEORY how this can be achieved EXCEPT by "freezing" the
incoming match offer queue, and thus (while it is frozen) preventing
Customers from protecting themselves from such interferrence! In my
book, that is covert interferrence in the process of Fair Market Value
establishment.
The Gambling Commission said that the process employed (still not fully exposed to Public Scrutiny) was legitimate, because betfair had a Bookmaker Licence. This, against the backdrop of betfair adverts saying effectively "cut OUT the middleman" (meaning the bookmaker!!! aka ITSELF!!!)
Latest news is that the Gambling Commission (which has NEVER criticised
a large bookmaker OR a large Betting Exchange since it was formed) is
on the List of Quangos to be abolished.
Most Electors and Taxpayers will be forgiven for wondering what they
EVER did to justify their Ministerial-level salaries........
Rant over.
For those who buy betfair share, good luck.
I suspect you'll need it!