BETFAIR TARGETING ASIA'S GAMBLERS FOR GROWTH

ONLINE gambling service Betfair, has embarked on a long-term expansion plan in Asia's gaminghungry markets by lobbying governments and the handful of existing legal bookies for recognition and alliances.

The company - dubbed the eBay of gambling - is targeting Singapore, Hong Kong, Malaysia and Thailand, said Tim Levene, the company's managing director for the fast-growing region.

China, the world's most populous country where betting is vastly popular but illegal, is a fifth target, but likely to be a much more distant prospect, Levene said.

Betfair is focusing first on breaking into local markets for bets on the likes of Chelsea and Arsenal

rather than horse racing or rugby, and Hong Kong-based Levene admits he faces an uphill task.

Betting on sports is banned in some Asian countries, and controlled for the most part by shadowy, underground groups.

In those where it is legal notably Singapore and Hong Kong - the bookies' job is the preserve of State-appointed monopoly operators, such as Singapore Pools or the prestigious Hong Kong Jockey Club.

And in virtually every market, acknowledgment of and regulation for the brave new world of

online gambling operations is almost unheard of.

"This the most sophisticated gambling market in the world, and is not legal in almost every jurisdiction," said Levene, who reckons that for every pound wagered in Asia through legitimate channels, 1000 is handled underground.

Betfair has been turning heads since it started operations in 2000 as punters may either themselves offer odds for other bettors to accept, or place wagers on odds offered by other users. Turnover now exceeds Pounds 100 million a week.

Some Asian gamblers use Betfair's UK-hosted sites already, but some regional administrations try block its servers, and even if not, clearing payments can be troublesome. Marketing for Betfair in Asia is almost entirely out of bounds.

"My remiis to start to lobby governments and existing operators, to talk to them about what a betting exchange is and how it could help them and, two, how Betfair could potentially be a solution in their fight against illegal gambling," Levene said.

Results are hoped for within two years and expected within four.

"We are seeking legitimacy in every market we want to operate in. Without clear regulation...it makes it very difficult to operate an effective business," he said.

"I think that governments recognise now that prohibition is not the way forward."

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