Auction-based bookie Combet closes down

Combet, the auction-based bookmaker which attempted to shake up the Australian betting model, has closed after 18 months, with account holders set to be returned their money.

Jake Howard, the driving force and public face behind Combet, has confirmed to The Straight that the platform has been shut down and will no longer operate. The winding up process includes returning money to account holders.

Combet launched at the start of the 2022 spring carnival with an auction-based computerised ledger system, which involved a hybrid model of fixed odds and tote betting, operating only on Saturday racing.

The concept involved the auction of odds of all horses in a race starting at $1.01 and then being wound out until the odds were deemed backable by the punters. Combet took bets to a certain liability on each horse to a certain level, with the idea that the market would ultimately decide the price.

However, the model depended on liquidity and demand to work at its best and inefficiency in that regard meant margins were ultra-thin, or even negative on certain events.

Howard’s regular videos on X (former Twitter) detailed how the ‘smart’ punters were consistently cashing in on the model, but he continued to back it in.

In early 2023, Howard confirmed he had taken further investment in the business and would look to change the risk profile of the model.

Howard, who had worked as an on-course bookies clerk for many years, continued to utilise social media to promote the auction model through 2023 as well as offer insights into wagering trends and other wagering news.

However, in an ultra-competitive and highly taxed market, it appears Combet was unable to sustain profitability. It offered its final Saturday auction markets on March 2 and soon after advised customers that it was closing its doors.

It plans to give a further update on the platform’s future later in the week.