News

Monday, 31 August 2009 03:39

Betfair, the UK based online gambling group are reportedly considering the launch of a major £1.5 billion floatation on the London stock market within the next few weeks. The founders of the company, Ed Wray and Bertie Black will be involved with a series of meetings with their banking and financial advisor over the next few weeks in order to discuss the many aspects of the deal.

The intended launch of the floatation appears to be timed to provide Betfair with a large boost in capital in readiness for the hoped for alterations in US gambling legislation which should see restrictions lifted for online gambling companies to re-enter the US market. In what promises to be the first major public listing in the UK since the financial crisis became felt on a global level, the company will be placed in the strong position of being able to consolidate their place in the gambling market sector.

The much hoped for lifting of the ban on Internet gambling in the US will undoubtedly create an arena where many new deals will be brokered within the industry. Companies that are in a state of financial readiness for this to happen will be the ones who will stand to make the biggest profits in the medium to long term as what will amount to a cyber gold rush will almost certainly be set off. Industry experts are predicting this change in US law to come about as soon as next year as long as the current momentum is maintained by Barney Frank and his followers in Congress.

Betfair is not so much a bookmaker in the traditional view, rather more of a betting exchange. It works by providing the means for customers to make bets on the outcome of a range of sporting events directly against one another. The company makes its money by retaining a percentage of each bet made. Recently it has expanded its portfolio into poker, financial markets betting and casino games.

In the past, Morgan Stanley, Goldman Sachs and Rothschild have all acted in several matters for Betfair. They could also be involved in its proposed floatation to raise capital, with bankers and financiers lining up to be a part of the team of advisers that it will be building over the coming weeks.