Johannesburg, 31 Aug 2001
Gauteng-based Interbet has launched a software tool designed to bring online betting services to licensed bookmakers across the country, the first known service of its kind in the world.
Interbet`s terminal server application is anticipated to revolutionise fixed odds betting by allowing bookies to offer, bid or strike bets anonymously, online in a realtime environment.
"Until now, bookies would phone each other to offer or place bets," says Interbet director Gary Piha. "This obviously narrows their reach in that they can only contact a few bookies in the limited amount of time available between events. Interbet, on the other hand, allows subscribers to access the whole market instantaneously, in a similar fashion to the system used by stockbrokers trading on the JSE Securities Exchange. Accordingly, bookmakers will now have the opportunity to accurately see realistic market prices and the true volume available at any given moment.
"One of the biggest perceived benefits of the system," notes Piha, "is that it will make market prices more realistic. Currently, on-course bookmakers determine the betting odds, even though they are trading far lower volumes than at the off-course bookies` offices. Interbet will allow for prices to adjust rapidly, thereby reflecting a perfectly competitive market of supply and demand, which is continually being determined by the actual volumes being traded. Consequently, it is inevitable that the Interbet system will improve trading efficiencies, while the anonymity factor will ensure that no preference can be gained by any one bookmaker, irrespective of the size or location of his bookmaking office."
Interbet`s medium-term objective is to take the system offshore to accommodate global betting on international sports events by linking up bookies in South Africa, the UK and Australia. This is expected to exponentially increase bookmakers` efficiencies and profitability. Bookies will subscribe to the system for a fee and be levied a charge per transaction calculated against the value of each transaction.
"We`ve secured a critical mass of 50 bookies who have signed letters of intent to subscribe locally to the system," says Piha, "and the more subscribers we have, the greater the efficiencies that will realised across the board."
Developed for Interbet by PQ Africa, the system was written in Microsoft Visual Basic and runs against a SQL Server database. As the bulk of trading normally takes place in the five minutes before an event, the system needs to be able to handle heavy transaction loads and have sub-second response times to notify bookies of offers/bids, strikes and confirmed transactions immediately. All data is hosted on the server for security reasons and the system facilitates audit trails and tracking to prevent fraudulent activity."
The Interbet system comprises two main modules. The administration module caters for adding users, events and horses to the system, accounting and record-keeping. The bookmaker side includes the trading functionality.
"The system has taken around 18 months to develop," continues Piha. "A large portion of the trading functionality centres around exposure and credit facilities. Bookies will post guarantees with Interbet and be able to trade to the limit of that guarantee. Every time an offer/bid is placed on the system, the exposure of each bookie needs to be recalculated to ensure they stay within their credit limit. As Interbet is responsible for the settling of accounts, this forms a critical part of the system."
In compliance with Gauteng Gambling Board requirements, the Interbet system has been SABS-certified. The pilot phase began in mid-July with 10 users. After positive feedback, the user base has grown to 27 bookies trading among each other electronically.
"Our subscribers` word-of-mouth praise has made them our most effective salesmen," concludes Piha.
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