As others have said the law against betting on races with Betfair is a state based law and only applies in NSW and WA. As has also been stated nobody has EVER been prosecuted under these laws and almost certainly never will as the government wouldn't want to have them tested in a court. Much better to have it as a threat to broadcast on SKY than to have it actually tested and overturned by the courts! Certainly if I was living in NSW that is one law I would not pay any attention to - luckily here I can use Betfair from where I am without having to break any laws.

Despite the dire warnings on Sky about your money not being protected with offshore bookies in my opinion they are the safest place to have your funds deposited. They are definitely not going out of business and have always responded promptly to any questions I have raised and withdrawal requests (more than I can say about some other betting operators in this country.