by Anton Johan
The latest word in the UK online gambling industry is that Betfair,
the giant gaming exchange, has approached Goldman Sachs and Morgan Stanley to
provide advice on a potential flotation.
The flotation could include a sale of the group, or share listing.
The £1.5 billion flotation is rumoured to be scheduled for autumn, 2010.
Betfair reported a 29% increase in earnings in 2010 to £72 million. It
also clocked a 27% increase in sales to £303 million.
If Betfair manages to pull off the flotation, it could mean a major windfall
for its two founders, Andrew Black and Ed Wray, who own 25% of the company
together.
The Japanese bank, SoftBank, is also a major investor in the company (23%)
and has been wanting to see a return on its investment for some time.
A flotation would definitely provide Betfair with fertile ground to lead a
consolidation of the gaming sector.
Betfair refused to comment on the latest flotation talks and would only allow
a spokesperson to say: "This is only speculation, and we do not comment on
speculation."
Betfair.com is licensed and regulated by the UK Gambling Commission, and is
also licensed and regulated to offer Australian markets by the Tasmania Gaming
Commission.
The group's website incorporates a wide range of betting and gaming options,
including sports betting, horse racing, casino gaming, poker, exchange games,
arcade and financials.
Betfair Casino offers players 150 games to play and is home to the Zero
Lounge where games have zero house margins.
