Just a quick follow-on from the seminar held last week by Michael O’Duffy and David Trevitt on exploiting innovation. During the talk they said that innovations are not necessarily tech driven or new products. Some could take the form of new business models. Examples include Amazon using its network infrastructure to sell cloud services. They also spoke of Betfair, which alters the traditional gambling model to one where people bet against each other.
Well, Betfair made the front page of Dublin freesheet, the Metro Herald, (above image) this morning. Either the company or their PR people are still acting creatively. They have offered to buy all 21 lottery tickets with total guaranteed winnings of €2.1 million for €84,000 each.
Under the National Lottery’s scheme, 21 tickets were chosen and assigned to horses in the National Lottery Sweepstakes race. Whoever drew the winning horse would get €1 million. Second place would get €500,000, etc. However, Betfair stepped in and offered to buy all tickets — and it was an all-or-none offer — for a guaranteed €84,000 each.
Whether the ticket holders bite or not is immaterial. Betfair just bought itself huge publicity for a deal that would amount to no net loss for them. Clearly their innovative thinking extends beyond the business model.