The casino operator will buy out Betfairs stake in Betfair Australia, a joint funded venture between both parties which launched in August 206, under the licence of the Tasmanian Gaming Commission.
Betfair Australia performance since its launch has been underwhelming, causing concern amongst Betfair management. In 2013 Betfair Australia reported losses of Aus $1.6 million, this had been the sixth time the Australian division had reported losses in its seven years since its launch. The Sydney Morning Herald reports that Betfair management were keen to offload its Australian operations.
Crown Resorts will buy the exchange and sports betting verticals out of the joint venture. The operator will also gain the sports betting customer base. Crown Resorts will not need to re-apply for a regional gaming licence.
It is likely that Crown Resorts will re-brand Betfair Australia. Crown Resorts recently hired former Paddy Power Head of Online Marketing Christopher Coyne as Chief Marketing Officer.