Betfair tipped for £1.5bn flotation

GAMING giant Betfair is lining up a potential £1.5 billion stock market flotation, it was reported yesterday.

The online betting exchange is understood to be planning an initial public offering as early as September after holding talks with its advisers this week.

Betfair is expected to earn a place in the FTSE 250 Index if its reported stock-market debut gets the go-ahead.

The firm is said to have considered a listing before, but plans were put on hold in 2005 as it reportedly wanted to wait until after the 2006 World Cup - usually a mammoth event for gaming firms.

Betfair was founded 11 years ago by Bertie Black and Ed Wray, who own a combined 24 per cent stake.

Wray is a former investment banker while Black is a professional gambler and fomer derivatives trader. The remainder of the company is thought to be owned by Japanese bank Softbank, a group of venture capital investors and Betfair employees.

A Betfair spokesman said suggestions of a flotation were "pure speculation".

Its reported flotation plans come as online grocer Ocado prepares for its 1.2bn market debut.

The group is drumming up shareholder support for the listing, scheduled to take place later this month.

Betfair's latest set of annual results show the group grew underlying earnings by 29 per cent to 72 million in the year to 30 April, 2009.

It claims to be Europe's largest online sports betting operator, with 2.5 million registered users. The firm employs 2,300 people with operations in Malta and Tasmania, and offices in Italy, Romania and Germany.