After a seemingly neverending saga of politics, police intervention and gambling, it appears as if Tasmania have finally offered UK betting exchange, Betfair, a license in their state.

And the pessimists are out in force - estimating that New South Wales horse racing could lose AUS$300 million in turnover out of this - $15 million of revenues. Conversely, if the license goes through legislation, Tasmania raciing is guaranteed at least $5 million a year in the first 2 years.

Betfair have been campaigning for a license for a few years now, finally going into a joint venture with Aussie's most famous media mogul and gambler, Kerry Packer.

Australian racing has long been threatened by betting exchanges - that basically allow the punter to act as layer and backer - taking out the bookie as the middleman. It has gained general acceptance in the UK and is a punter's paradise.

However, despite Betfair's assurances and strict controls they have in place to avoid misconduct - by partnering with jockey clubs and opening up relevant flows of information - the Australian racing board are still vocalising that they are worried about racing's integrity - a charge that is seriously unsubstantiated and misplaced

Article: Tassie finally caves