Betfair loses legal case against Racing NSW

Recently floated online betting exchange Betfair, suffered its first setback as a public company today, when it lost the latest stage of an Australian legal case.

A legal dispute has seen the British company challenge two Australian racing bodies over their decision to implement a 1.5% charge on bets taken on all New South Wales thoroughbred and harness races – a levy that costs Betfair Australia about £2m a year.

A Sydney court again ruled for Racing New South Wales and Harness Racing New South Wales against the betting exchange, which now says it will review its options including a potential appeal to the high court of Australia.

Betting industry experts said the news undermines the theory that Betfair's business model is easily replicated in new markets.

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