Betfair Considering Float

Leading British online betting exchange operator Betfair could be about to launch a $2.5 billion initial public offering in order to help it consolidate its position in the US market if restrictions there are lifted.

According to a report from financial information website MarketWatch.com, Betfair’s founders, Bertie Black and Ed Wray, are scheduled to meet with banking advisers over the coming weeks to discuss what would be the UK's first major listing since the global financial crisis hit.

The Sunday Telegraph newspaper reported that any floatation would provide Betfair with capital that would enable it to lead a likely consolidation in the gambling sector. It added that a lifting of the Unlawful Internet Gambling Enforcement Act (UIGEA) prohibition could come as soon as next year, which would spark deals in the industry.

MarketWatch.com revealed that Goldman Sachs, Morgan Stanley and Rothschild have all acted for Betfair in the past and could be involved in any new attempts at raising capital. It stated that talks with bankers could also lead to a ‘beauty parade’ of potential advisers over the coming weeks.