by Frank Angst
In a landmark agreement, Breeders’ Cup Ltd. will receive revenues from exchange betting on Betfair for the first time this year.
Breeders' Cup and Betfair announced the landmark agreement on Thursday morning, in a deal that also provides Betfair’s 2.5-million customers with access to the Breeders’ Cup pari-mutuel pools.
Breeders’ Cup President Greg Avioli said the agreement will help increase international interest and revenues.
“Our agreement with Betfair is an important milestone in our ongoing effort to grow the international simulcast wagering market for the Breeders’ Cup World Championships,” Avioli said. “As more and more international horses participate in our championships, interest levels and wagering handle from around the world continue to increase, allowing us to maintain the highest possible purse levels for the event.”
The licensing agreement will allow Betfair to video stream the Breeders’ Cup races on its website and to promote exchange wagering for their international customers (Betfair does not accept U.S. customers). In exchange wagering, some customers lay odds while others place wagers at those odds. Before payouts are made, Betfair takes a small percentage of that handle off the top.
As of 6 p.m. EDT on October 21, Betfair had already handled $150,000 on this year’s Breeders’ Cup Classic (G1) with Rip Van Winkle the 2-to-1 favorite.
The grant of license rights will permit Betfair to use the Breeders’ Cup marks and advertising in the marketing of the Championships.
“We are delighted to provide our customers with the ability to directly access the tote pools to America’s premier racing event,” said Betfair’s Director of Horseracing Stephen Burn. “Our partnership with the Breeders’ Cup is the beginning of what we intend to be a mutually beneficial partnership with U.S. racing.”
Breeders’ Cup did not announce the percentage of revenue it will receive for exchange wagers placed on its races. Pari-mutuel access for the large customer base should provide a handle boost for Breeders’ Cup. The large pools and typically large payoffs generated by exotic wagers offered through pari-mutuel pools could prove particularly enticing to exchange bettors who normally do not have access to pools that offer life-changing scores.
The agreement will see the Breeders’ Cup receive agreed revenues from Betfair’s tote and exchange betting on the Championships. It follows agreements reached by Betfair earlier this month with Del Mar and Zia Park. Also, the company was talking with Penn National Gaming Inc.
Betfair and Breeders’ Cup already have a partnership through Betfair’s United States-based racing channel, Television Games Network. Betfair purchased TVG for $50-million in January. TVG is an official media partner of the Breeders’ Cup and the sponsor of the TVG Breeders’ Cup Mile (G1).
Frank Angst is a Thoroughbred Times senior staff writer