Betfair was clever in retrospect. It went after an Australian State that has a noticeable chip on its shoulder for being a ferry ride from the Mainland, suffers from more rain than Melbourne (I just ducked!!), has a dubious historical distinction as the home of "that" convict settlement and (oddly) seems to be spoken of in the same breath as a particular mass murderer (even though every other State has miles more of them).

It was of little surprise then to see Betfair target Tasmania as its port of entry to Australia. It was of even less surprise to see the Mainland cousins glare threateningly at the renegade family member and threaten all number of sanctions if their rules were not adhered to.

But, as much as the Racing Clubs scowl and swear, I can tell you this much - Betfair looks likely to get a foothold in Australia. Tasmania suddenly has a chance to protect its racing industry - and generate some profits at the same time. Betfair will give the government a racing product fee based on the gross profits generated from Australian horse racing, paid irrespective of where the punter is based. The Government wants a tax rate based on the gross profits generated on all Australasian events (before GST, for which Betfair will be responsible), paid irrespective of where the punter is based. It also wants a guarantee for the next five years that the Tasmanian racing industry's funding grows at least in line with inflation. If payments prove insufficient, Betfair will pay a top-up fee. The Government also wants an upfront payment.

The Premier has said the Betfair model suits Tasmanian racing, which has a poor financial stream.

Tasmanian racing could be $26 million better off in just three years if it grants a licence to Betfair, according to estimates.

And the other States wonder why the "other" cousin is being recalcitrant when they tell it to come into line?!