* Betfair is currently accepting only players from the following countries: UK,Ireland,Denmark,SpainItaly,Portugal,Sweden,Czech Republic,Romania,Hungary,Netherlands,Australia
One of the biggest internet online casino success stories is that of Betfair, a company based in the UK, which operates the world’s biggest online betting exchange. The company has grown from strength to strength, starting from $ 10 million in revenue in 2002 to $ 280 million in 2006. You may be asking yourself… what is the secret of success that enabled Betfair to do so well?
Key factors that have made Betfair so successful…
Betfair’s initial product was primarily designed for a niche market (their sophisticated gamblers who were not mainstream consumers).
The approach that Betfair took was like that of a stock market exchange – where odds worked like share prices. For example: Players could trade in and out of positions on horses, very much like trading in and out of stock positions. This type of approach enabled Betfair to have a superior hand when it came to innovations in the UK horse and sports betting arenas, further attributing to their success.
Having an increased cost advantage over traditional betting markets
Betfair has many betting markets, but most of the wagering volume still comes from horse racing – Betfair’s initial startup market. Because of the approach that Betfair has implemented, it does not have the risk exposure that traditional horse racing bookmakers have. Furthermore, Betfair also had cost advantage as it benefited from UK tax laws on internet gambling, and did not have to pay taxes on their gross profit compared to their fellow offline bookmakers.
Betfair’s marketing and launch strategy
Staging a mock bookmaker’s funeral procession on one of the biggest horse racing event days – Oaks Day, in central London, got the press wagging their tongues. This gave Betfair added visibility and air time. Furthermore, it got the attention of horse racing and sports gamblers to try the new online system on launch day. However, much of Betfair’s success has been due to mainstream press coverage, securing good sponsorships, partnerships and advertising.
About Betfair
Betfair offers a range of online gambling products, including sports betting, horse race betting, online casino games, poker, bingo, arcade and exchange games.
Betfair is listed on the London Stock Exchange and the current share price is GBP 705 with a range of GBP 641.51 to GBP 879.50 over a 52 week period.
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