Ladbrokes Continues It's Commitment to Online Gambling

Published Sunday, August 05, 2012 -

The United Kingdom is home to many bookies that situate themselves on the corners of cities all over the nation with hopes of attracting the bettors who prefer to go down to the shop and place their wagers personally. With the advent of internet wagering the personal touch is being replaced by the touch of a button making bets just a click away.

The more iconic bookies in the U.K. such as Ladbrokes which has been a favourite for ages are trying their level best to get the online ball rolling some with limited success. William Hill Online has broken through as well as Ireland’s Paddy Power which now claims that four fifths of its wagering income is now derived from internet and telephone betting.

Ladbrokes on the other hand is having a hard time cracking the online gambling nut with little success presenting itself so far. Ladbrokes recently announced it was replacing Richard Ames, the man responsible for its digital operations following a sharp 50 % decline in first-half profits from online and mobile phone gambling to just £15m. Ladbrokes says it garnered but one seventh of its total first-half operating (pre-interest) profits of £107m from phone and internet wagering. Proving that the establishment betting firms are taking pains to get online gambling to be more popular and that although it sounds easy to do even with brand recognition it remains a difficult task to get it right. Efforts to develop its own online technology, on which Lads has already spent an estimated £50m, have not produced the desired results.

Profits are measured against expenses and Ladbrokes has indeed blamed the decline to a 30% increase in operating costs. Expenses associated with costs to get involved in newly regulated markets like Spain and Denmark, while withdrawal from markets in Greece reduced revenues significantly. Despite a few setbacks Ladbrokes has shaken the foundations and has reformed its executive team to reflect its commitment to digital. Time will tell how well the new team sorts out internet gambling for Ladbrokes.

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