Betfair decision met with disbelief

The decision by Racing Victoria Ltd (RVL) to grant betting exchange Betfair a licence to operate on Victorian racing was met with disbelief and disappointment by its NSW counterpart.

Racing NSW chief executive Peter V'Landys said the decision came as a complete surprise.

"This is not a backflip by RVL - it is triple somersault," V'Landys said.

"We need to see the fine detail of the approval but we would be very surprised if all the integrity concerns have been met.

"They haven't consulted any other jurisdiction in Australia.

"Victoria was one of the major drivers of integrity at the Australian Racing Board (ARB) and for them to make a unilateral decision is disappointing.

"I would be surprised if they have been able to address this, especially with the Fallon case that has just happened."

Britain's six-time champion jockey Kieren Fallon was among 11 people charged this week after a corruption investigation into race fixing.

Fallon was called to answer charges on Monday of conspiring to defraud customers of Betfair which gained a licence in Tasmania earlier this year.

James Packer's Publishing and Broadcasting Ltd (PBL) has a 50 per cent stake in the Australian operation.

ARB chairman Andrew Ramsden echoed V'Landys comments.

"Today's decision to allow a betting exchange to use Victorian race fields is an immensely disappointing outcome for racing," Ramsden said.

"The integrity issue that is at stake here is clear - allowing unlicensed persons to lay horses is a guaranteed recipe for undermining public confidence in racing.

"The integrity conditions that RVL has imposed have some merit, and RVL can be acknowledged for having achieved a significant change in position on the part of the betting exchange operator.

"Ultimately, however, I believe that these measures can at best be ameliorating influences. The basic problem remains that betting exchanges encourage people to make money out of horses losing races, and that, of itself, is fundamentally incompatible with racing's integrity."

A statement from wagering giant Tabcorp said integrity was the major issue.

"Tabcorp believes there are serious integrity issues linked to the operation of betting exchanges," a company spokesperson said.

"Betting exchanges are a serious threat to the proper conduct of racing and the integrity of betting because they allow punters to back a horse to lose.

"The Australian spirit is to celebrate backing a winner. There is no thrill in betting on a horse to lose."

RVL approved 174 wagering service providers to publish Victorian race fields, including 164 bookmakers and nine totalisators.

Betfair was the only betting exchange application received by RVL which said it applied a rigorous process of examining the company's procedures seeking its commitment to meet RVL's integrity requirements.