Ladbrokes and Betdaq In Online Betting Exchange Discussions

Published Monday, January 07, 2013 -

The competition for the online gambling punter’s money has reached fever pitch in many jurisdictions but it is most intense at the top where Ladbrokes and William Hill gambling providers are trying to capture market share.

Ladbrokes has been attempting to expand their sphere of influence but acquiring operations that would enhance their current offerings. Recent reports have confirmed that Ladbrokes is in negotiations with betting exchange Betdaq. A statement confirmed the firm is active on the takeover front, “discussions regarding a potential future acquisition” and that negotiations are “ongoing” with “no certainty that an agreement will be reached.”

The new target is another in a list of attempts at takeover by the Ladbrokes team. First it was 888 then Sportingbet which would have given Ladbrokes a toe hold in the Australian market. William Hill online services are making some headway in the internet wagering world something Ladbrokes is attempting to do from a different perspective. Betting exchanges are becoming popular and William Hill has not gone down that road as yet. Ladbrokes’ discussions with Betdaq is a logical step forward after Ladbrokes discussed the possible use of Betdaq’s exchange technology. Not all of the analysis on the subject was positive as Panmure Gordon’s Simon French , explained, “Acquiring Betdaq would provide Ladbrokes with broader product reach and may reduce leakage of certain customers to Betfair, but significant investment in product and marketing would likely be required for Betdaq to become a material profit contributor to Ladbrokes.”

This sort of comment did not deter investors from seeing the potential in such a takeover bid with the stock price of Ladbrokes reaching a high of 203.30 pence. Betdaq has had a serious go of it the last few years with the firm exited from the Down Under market after an media investigation found there was a problem with the legality of its operations in that jurisdiction. This fact alone may see Ladbrokes reconsider its choice of acquisitions.

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