The election results in Australia rubbished all exit polls and speculations. While the residents were surprised it also sent shockwaves in the Australian betting industry and especially impacting online bookmaker Sportsbet’s business.
The company had to pay over AU $5 million to punters on election bets.
The favorite to win the elections was the Australian Labor Party and as such the bookmakers had already started to pay out winnings to customers betting on the Labor Party. Sportsbet paid AU $1.3 million as winnings on the wagers placed on the Labor Party and Bill Shorten.
The strategy to pay out winnings to punters beforehand is not an uncommon practice by bookmakers to get the winners engaged in other betting events with the winnings received.
However, just after a few days, the company paid out the winnings, came the bolt from the blue. Surprising everybody the coalition won, and the company had to pay to those who had wagered on the coalition and Scott Morrison’s victory.
According to the sportsbook predictions the Labor Party was expected to win 82 seats and the coalition 63 seats; however, the coalition won grabbing 75 seats.
The company officials have said that they will have to look at alternative sources to mitigate the massive losses they have suffered. On Sportsbet’s official twitter handle, the company said that they were the biggest losers this election.