Well, we knew it was coming but it didn’t make the recent news that Pinnacle Sports was leaving the Australian market due to the IGA Amendment Act much easier to swallow. With most Aussies not able to get access to Pinnacles markets will this create an opportunity for Betfair Australia and other Aussie corporates to grow their hold?
If you haven’t heard the news about Pinnacle, this article will get you up to speed quickly.
Now onto the tough questions.
Will this help Betfair, maybe! More on that later.
Will it help the corporates turnover? Probably – if they want it to!
The major corporates will still only want to play the soft clients. Particularly in the face of the point of consumption tax and increasing product fees from sporting bodies.
Sure, on gameday as the market settles down the bigger books who have some establish positions might let you on for a bit to level out a book but it’s certainly not a reliable method.
Most of the smaller guys don’t write enough bets to build a volume and demand based book so where does that leave us?
Aussie owned an operated business TopSport who’ve historically been known for taking a bet off the sharper punters have already thrown their hat in the ring offering up $10,000 line limits this season on both NRL and AFL after final teams are released.
In light of the recent change in legislation in the Australian marketplace, TopSport will make a concerted (cont) https://t.co/vFjFlNoHD8
— TopSport (@TopSport_com_au) March 14, 2018
This bold promise from the crew at TopSport was met with a chorus of approval from punters on Twitter.
— Noldie Locks (@noldielocks) March 14, 2018
Seems very good. To win 10k is massive on sport
— David Dwyer (@dwyerbookmaking) March 15, 2018
Great stuff guys 👏
— Blake Mather (@BlakeMather_) March 14, 2018
— Justin Pereira™ (@JPereira1974) March 14, 2018
It remains to be seen whether TopSport can survive betting mainly sharps, at high limits and competitive prices while paying all the product fees and taxes in the Australian market. As punters, it is certainly refreshing to see someone try their hand!
RELATED: What Australian punters need to know about the Point-of-consumption tax
Now onto the other mob who don’t hold risk and have the tools to provide an answer.
Betfair Australia is licensed as a betting exchange in the Northern Territory of Australia and in a marketplace of increasingly smart punters, compliance, and tax on operators looms as a potential saving grace.
While Betfair has to pay product fees like the regular corporate bookmakers they don’t hold any risk like bookmakers do meaning that there operating expenses are substantially lower as is their risk.
While Betfair is a beast in the UK it hasn’t exactly found its feet as a sports betting vehicle in Australia as yet. Certainly, the racing product is a big factor in the Australian market but Sport is still a bit of a wounded warrior.
Will Pinnacle’s closure drive more volume to Betfair?
It’s certainly a possibility. Particularly for popular Australian sports like Aussie Rules and NRL who don’t have a great international following and have thus far struggled to develop the depth of product it needs to attract the middle tier and casual punters.
These punters are vitally important. Otherwise, it’ll just be sharps playing sharps which will (in a vacuum scenario) result in both parties losing after the commission is paid.
For that very reason, it was concerning to hear recent comments from Betfair Australia CEO Tim Moore-Barton regarding their marketing strategy and the customers they need to attract.
Whilst we love the GWTG tagline and Betfair Hub, it seems to be targetting punters who are price sensitive and would find Betfair regardless of whether there was a banner or catchy slogan.
The golden customers remain the casual punters who bet for enjoyment, not for financial gain. They help to replenish the betting ecosystem and build depth of liquidity.
So, the big punters who were getting set for five and ten thousand on Pinnacle might now be appearing on the exchanging laying and backing teams to win or lose the same amount. More often than not at much greater odds offered by the corporates.
Hopefully, Betfair is able to capture some of that lower and mid-tier money to bet against it, or better still work with the corporates to manage their risk by using the exchange.
They’ll certainly start doing so if minimum bet laws are ever introduced on NRL or AFL games. Where’s Richard Irvine when you need him?
Good luck Betfair Australia, the sharp punters are counting on you!