BUSINESS

Betfair odds on to make estimate

TAGs: Betfair, Bodog, Ed Pownall, IPO

betfairpostThis week Betfair has been splashed across the pages of Britain’s tabloids as if it were having an affair with a married woman and there’s more announcements to come. It’s expected that Betfair will soon be moving into the fast food sector, along with a much-vaunted trial run at the low-cost, no frills airline market. For the moment though, the online gambling exchange will have to be content with the imminent IPO that they announced earlier this week. That’s where Bodog come in though.

The online gaming firm has the company making the estimated valuation of £1.5bn at evens, 8/11 to realise a market capitalization below this price, and is as short as 1/6 to trade above (15/4 to trade below) the issue price at the end of day one.

Bodog spokesman Ed Pownall said: “The nature of being a floated company means you answer to shareholders and the problem there could be that if they need to up revenues, they will need to up commissions.

“There are plenty of things that could change like tax regimes and everything else. I think people thinking Betfair is a pot of gold could be in trouble. I don’t think it’s an absolute sure thing. I would be surprised in the long run if it doesn’t end up affecting commission rates in some way.”

Might have to wait for the first of those jetliners for a little while longer, guys.

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