Australian UK Online Gambling Giants Rumored Merger

Published Monday, November 28, 2016 - Online-Casinos.com
Australian UK Online Gambling Giants Rumored Merger

The interest in mergers in the UK’s regulated gambling industry has gathered momentum and is seeing yet another wave of possible acquisitions that is creating even larger online gambling enterprises. Competition has a hard time when confronted with mega corporations that have deep pockets and lots of experience. A recent revelation in Australia’s the Mail on Sunday posted recently said that the Ladbrokes Coral was planning a “multi-billion pound bid” to acquire the Australian betting services operator Tabcorp. The recent news that Ladbrokes and Coral had become one with the approval of the UK’s competition officials has some speculating the new amalgamated firm was already turning its attention to propose a takeover of the Australian betting company Tabcorp Holdings. The Australian news media revealed last January that Ladbrokes was thinking of taking over Tabcorp in 2013 but this was dismissed by the Tabcorp CEO David Attenborough.

The timing of the proposed acquisition is critical with Tabcorp in the middle of its own proposed merger with Aussie betting and lottery giant Tatts Group. Ladbrokes Coral is trying to jump in line because it doesn’t have an interest in taking on Tatts. Tabcorp did however buy a ten percent share of Tatts that some have suggested was a message to prospective competition that it had bigger plans.

Ladbrokes Coral is watching the development of Tabcorps’ online strategy which has been showing a solid gain in recent months. The firm has been attempting to grow its online business by offering incentives to retail partners who encourage customers to start online accounts. Venues that host TAB betting operations are being offered commissions for new digital account registrations and a portion of revenues derived from those new digital sign ups. Tabcorp’s head of wagering Craig Nugent was quoted in The Australian Financial Review saying that the company was now “signing up people in venues at 10 times the rate we used to.”

 

 

 

 

 

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