13th Aug 2014 07:02
LONDON (Alliance News) - Betfair Group PLC Wednesday said it has sold its 50% stake in Betfair Australasia Pty Ltd to its joint venture partner Crown Resorts Ltd and has signed a deal with Crown to continue providing its betting exchange in the region under a business-to-business model.
Crown will pay AUD10 million for Betfair's stake in the joint venture.
Under the terms of the B2B agreement, Betfair will receive a share of revenues generated by its betting exchange in Australasia.
Betfair Australasia was formed as a 50:50 joint venture between the two companies in 2004.
"We are pleased to have signed a long-term agreement that facilitates Betfair's continued participation in the fast growing, licensed Australian market alongside a partner with a strong local presence," said Betfair Chief Executive Breon Corcoran.
"This represents an extension of Betfair's B2B operations and is a new and profitable operating model for the exchange," Corcoran added.
Betfair shares were up 0.5% at 1,096,00 pence at the open Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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