Betfair buys American racing channel- 28 Jan 2009 00:00:00
The internet betting company Betfair has dived into the American market by purchasing the racing television channel TVG for $50m (£35m).
The UK-based company will now have rights to the channel that covers racing from 70 tracks in 16 states, including the major derby hubs such as Kentucky, California and New York.
TVG also accepts bets from residents of those states. It then divides the profits with the racecourses involved, which include Churchill Downs, the home of the Kentucky Derby, Santa Anita, Belmont Park and Saratoga.
Although UK companies have steered clear of the American gambling market because of its strict regulations, the channel purchase has marked a step forward for Betfair, which started up less than a decade ago.
It will also give the company a head start over other UK competition, should the U.S. ever let up on its regulation laws.