Punters count cost of US election

MANY British gamblers are nursing heavy losses on the American election after getting on the wrong end of spectacularly volatile prices on George W Bush and John Kerry.

However, there was relief for the lucky punters who did back Bush that they will not now have to face a lengthy wait for their winnings.

Bookmakers had told them that bets would not be settled until the election result was clear and unambiguous. That meant a mooted challenge to results by the Democrats, or any move to prolong the process, had left even Bush-backing punters grim-faced.

Had the Kerry camp demanded a count of provisional votes in the crucial swing state of Ohio, punters could have been frozen out of their winnings for weeks.

Some £30m of bets on the US Presidential election were matched by bookmakers and betting exchanges based in Britain and Ireland, with much of that money being risked in a late rush.

At one point, around midnight on Tuesday, reports of a high turnout of voters pushed Kerry from marginal underdog into the position of short favourite, at odds as short as the equivalent of 1/4.

People who backed Kerry at that point were licking their wounds as indications from Florida and Ohio of Bush victories came in at 4am.

Hugh Taggart, at London-based betting exchange Betfair, which matched some £17m of wagers, said: 'At one point of the night, it was possible to bet on Bush to win at the equivalent of 4/1.'

John Delaney, chief executive of Dublin-based Tradesports, which matched more than $20m (£10.9m) of trades, said: 'We will wait until Kerry concedes or it is mathematically certain Bush has won. Some of our markets will probably continue to trade for days, such as individual states where the result is in doubt.'

Delaney said the level of interest in this election was unprecedented for his exchange, with 'tens of thousands' of people checking prices or placing orders.

Spread-bet bookmakers were celebrating after emerging in profit from the Bush win. A majority of punters' money went on Kerry in the final 24 hours, as it appeared the Massachusetts senator was well placed to win.

Wally Pyrah, at spread-bet giant Sporting Index, said: 'It was a complete turnaround, because punters had previously been backing Bush. However, in the end, we have made six-figure profits on the election.'

Tradesports is already advertising prices on the next American election, in 2008. It was quoting the Democrats as slight odds-on favourites to take the Presidency in four years with Arizona senator John McCain around about 2/1 favourite to be the Republican candidate.

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