Betbrokers runs out of funds to service its big punters

Betbrokers, backed by former F1 owner Eddie Jordan, has had to turn away business because it doesn't have the cash to service bigger punters

11 April 2012

Betbrokers, the internet gambling business placing bets for anonymous high rollers, warned today that trading has collapsed because it doesn't have enough money to service its biggest punters.

The online betting broker was launched four years ago by Wayne Lochner who already has one dot-com casualty behind him, the one-time stellar cyberspace stock Affinity Internet which ended up in administration.

Backed by City moneybroker Derek Tullett and the former Formula One owner Eddie Jordan, Betbrokers' celebrity sporting "ambassadors" include Lester Piggott, Vinnie Jones, Nasser Hussein and Barry McGuigan.

But the firm is now admitting a funding crisis has meant it has been forced to turn away business.

Betbrokers acts as an intermediary for big punters. They place a bet with Betbrokers which executes the trade with the best price from 200 bookmakers. Betbrokers also acts as "clearing house" to settle the bets.

However, the company today reported that traded volumes in May halved to £2.2 million, as the size of the average punt tumbled from £1370 last year to just £424.

Lochner was forced to admit a lack of funds in its clearing house system meant it could not take the bigger punts. Betbrokers shares crashed 23% to 0.5p.

It is not the first embarrassment for the firm. Last year it sent out an email with the internet addresses of 5000 of its once anonymous clients.