Betfair In the Middle of UK Race-Fixing Scandal

Betfair now finds itself in the spotlight because of a high-profile race-fixing scandal involving one of Britain's top jockeys, Kieren Fallon.

London authorities have charged a total of 11 people with conspiracy to cheat on Betfair following the result of an in-depth probe by City of London police into corruption in horse racing between December 2002 and September 2004.

The charges relate to allegations of race-fixing in more than 90 races.

Among those charged is Fallon, 41, who has been prohibited from riding in Britain until the end of this trial.

Betfair's spokesman in Australia, Andrew Twaits, has told the media that it would be inappropriate for him to issue remarks on the corruption charges in Britian because the matter was before the courts.

Meanwhile, the Victorian Government has implemented a law, which prohibits online betting exchanges in Victoria. The West Australian Government had said it would also ban online betting exchanges; while the South Australian, NSW and Queensland governments are still deliberating on the matter.

However, the Tasmanian Government already granted Betfair a licence to operate in Australia late last year, after which Betfair has invested millions of dollars into infrastructure in Tasmania.

Betfair allows customers to bet against each other, thereby enabling them to gamble on horses losing.

Betfair is 50% owned by James Packer's Publishing and Broadcasting Ltd.