What do you think? I know that this company is completely revolutionising event gambling like horses and sports in the UK, simply because they allow punters to lay, as well as back, and they have no 20% spread like the bookies as the punters generate the market, making it generally very efficient. They make money by taking a commission from the winnings of each bet.
They're probably going to float next year, at a hefty price tag. They arent generating new gambling revenue, just sucking it up from online and land based bookies who cant compete on price. Why back a horse at 5/1 in the bookies when you can get 6/1 on betfair?
The size of their potential market is staggering. With the liquidity then now have in terms of markets and gambler numbers, they have a critical long term advantage in volume and, with their technology that will be very difficult to overcome.
The future ebay of gambling.
http://portal.telegraph.co.uk/money/main...xfrontcity.html
Bingo