Betfair Australia Appeal Judgement

17 November 2010

Betfair Group plc

Appeal in the Full Court of the Federal Court in Australia Betfair Pty Ltd v Racing NSW and Harness Racing NSW

In October 2008, Betfair Australia initiated proceedings in the Federal Court of Australia ("the Court") against Racing New South Wales (''RNSW'') and Harness Racing New South Wales (''HRNSW'') following their decision to implement a race fields fee of 1.5 per cent. of betting turnover on all New South Wales thoroughbred and harness races. The basis of Betfair Australia's claim was that the fee discriminates against its business as an inter-state operator in favour of NSW TAB, an intra-state operator, due to the differential impact the fee has on its respective gross revenue and that such race fields fee was accordingly in breach of section 92 of the Australian Constitution as the fee is discriminatory in nature and protectionist in its purpose.

In June 2010, the Federal Court ruled against Betfair Australia's claim to have the RNSW and HRNSW race fields approvals under applicable legislation deemed constitutionally invalid. The Court did, however, find that the 1.5 per cent. turnover fee was discriminatory in favour of NSW TAB and against Betfair Australia although Betfair Australia failed to prove that such fees were ''protectionist in nature'' and thus in breach of section 92 of the Australian Constitution.

Betfair Australia appealed this decision to the Full Court of the Federal Court, and judgement was handed down in Sydney on Wednesday 17 November 2010. Betfair Australia was unsuccessful in its appeal and will now review its options which include a potential appeal to the High Court of Australia.

Betfair Australia is a 50:50 joint venture between Betfair Group plc and Crown Limited.

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