Daily Digital News
LONDON - Betfair, the online betting exchange, is considering taking legal action against rival Spreadfair.
Betfair is claiming that the similarity of Spreadfair's name is confusing for consumers who may end up believing that the two operations are part of the same company.
Spreadfair, which launched a year ago, is owned by Cantor Index, the spread-betting arm of global financial services company Cantor Fitzgerald. With legal proceedings pending, it is currently using Cantor Spreadfair branding, but is understood to be keen to drop the Cantor moniker.
Betfair, which launched in 2000, has been a runaway success. Its annual results for the year to April 2004 show a pre-tax profit of £13.3m, up from £8.7m in 2003.
Betfair is preparing for flotation, which is expected to be later this year. It will place a value of at least £200m on Betfair and fun further expansion.
Last December, the Financial Services Authority fined Cantor £70,000 for failing to warn of the risks of spread-betting in a promotion offering gifts, such as a handheld computer, to new customers.
The campaign, which included distributing fliers at London Tube stations, was launched in September 2003.
