Betfair Closer to IPO

We haven't seen many IPOs in the online gambling sector in recent years.  That may be about to chance as Betfair reportedly prepares to go public.

Betfair has hired Morgan Stanley director Mark Brooker as head of strategy, according to EGR Magazine. It is the first in a series of anticipated moves prior to the potential £1.5bn flotation.

EGR Magazine has learnt from other sources that Betfair has hosted a series of meetings with leading institutional investment houses including Fidelity and Gartmore.

Betfair is in the process of appointing a corporate communications team from a short-list of financial PR firms in the City, sources have confirmed.

Betfair co-founder Andrew Black said in an interview with the magazine: "I think the investor base collectively would want us to make money available to them at some point and we have an obligation to do that.

"We do have people who are saying ‘well, hang on a sec, I think you guys have done a great job, I'm pretty happy I invested in you, but actually I've been sitting here waiting for my money back and you haven't given it to me; and while I'm pleased that you've grown my little investment into something quite meaningful I would like to get my hands on the dosh'."

Betfair is the world's largest Internet betting exchange. The company is based in Hammersmith in West London, England.

Since Betfair was launched in June 2000 it has become the largest online betting company in the UK and the largest bet exchange in the world. Betfair claim to have over 2,000,000 clients and a turnover in excess of £50m/week.

Alistair Prescott, Gambling911.com