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After decades of casinos using the house edge as their main way of making money, Betfair have turned the tables and offered one of the greatest angles in online gambling history—they’ve taken away the edge altogether. Tired of seeing the ball land on that pesky green zero on the roulette wheel? Well Betfair have simply done away with it. Now if that isn’t the most innovative step ever taken by an online casino, we don’t know what is.
It fits in nicely with the whole Betfair ethos of equality, and doing all they can to weigh matters in favour of the intelligent punter. Yet this refreshing punter-friendly approach is not just a gimmick, it’s proving to be a workable business model for the company. Here’s the company line on how it all works: “Players have to play basic strategy to take advantage of the zero edge in skill games of blackjack, jacks or better, and baccarat. Though we don’t make any money at all (over time) from Zero Roulette, it is a fantastic tool for communicating our commitment to value to punters.”
The Zero Lounge is a flash-based offering, and accessible via the website rather than requiring a download. It stands out like a beacon from the rest of the casino world in 2007 as the best idea by a mile. If you need more convincing, the Zero Jacks or Better video poker game removes the house from the game, giving a 22-percent better royal flush payout than any other online casino.
What has been the highlight of 2007 for the company and why?
We’re operating in a highly competitive market and a complex regulatory environment. Within this framework we have managed to achieve like-for-like revenue growth of 30 percent in 2007.
What has been the worst moment of 2007 for the company and why?
[Laughs] Kauto Star winning the Betfair Million. We had to pay a £1 million bonus. It looks likely that Kauto Star might do it again, which would mean paying out two years running.
What has been the biggest win of the year by a punter on your site?
Well, Annette Obrestad won £1 million at the WSOPE last September. Six of the players at the final table in the WSOPE won in excess of £60,000 from satellite tournaments from around $10.
We had some big sport-betting winners but for the Betfair exchange, you have to remember that for every winner there is a loser. So when someone backs a 999-1 shot for £100 someone else is risking £100,000 of their bankroll.
How does Betfair keep its odds competitive?
The market does the work for us. If the traditional bookies are offering 100-1 and people are trading at 80-1 on Betfair then there’s a market inefficiency that people will exploit until the Betfair price is better than the bookmakers price. So it’s not just lower margins that make our odds better, it’s simple economics.
What makes Betfair such a popular betting exchange?
We were the first and we are the best. Our competitors haven’t been able to compete on either liquidity or technology.
What steps has Betfair taken to ensure that the site offers a great online experience?
Everything we do is geared toward this. We have invested hugely in technology to ensure we are the most reliable, fastest and most secure gaming site. We have also improved usability and now offer a staged introduction to the Betfair platform.
What has the feedback been like since Betfair launched the Zero Lounge casino, where the casino has no house edge? What made Betfair decide to take this innovative step?
We wanted to offer our customers a casino and we wanted to do it in a uniquely “Betfair” way. We designed a product that is in keeping with our brand values of fairness and being on the same side as the punter. The feedback has been extremely positive.
How many staff does the company employ and where?
Our corporate HQ is in Hammersmith with about 800 staff. Overall we have roughly 1,200 staff in offices in London, Hobart, Malta, Dublin and Denmark.
What do you have planned for 2008? What sort of year is it going to be?
Our primary focus will continue to be top-line growth by enhancing our products; further expanding into legal markets; and offering our customers a world-class service while staying true to our core principles of innovation, value, fairness and integrity.
Robin Marks, head of media, Betfair
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