Online Gambling's Sportingbet Sees Potential in Centrebet International

Published Wednesday, May 11, 2011 -

Sportingbet is a sports betting and online gambling company, founded in 1997 that is headquartered in London, England announced recently it is in advanced discussions with Centrebet International Ltd. which could lead to a recommended acquisition by Sportingbet of Centrebet assets. 

This deal is by no means certain and these discussions remain subject to a number of conditions, including the agreement and execution of transaction documentation, and the financing of the proposed acquisition, which would be dependent upon equity fundraising by the Company.
It has been suggested that the Australian online bookmaker Centrebet would be bought with cash. The company is valued at approximately AUS$175m. The acquisition of Australia’s Northern Territory fully licensed  Centrebet would accelerate its “strategy of increasing its exposure to regulated markets and of geographic diversification.” The acquisition would be earnings enhancing in the first full year post-integration, commented Sportingbet. 

Centrebet  reported a first-half net profit of AU$1.8m, down 71% from the previous year due to the bookmaker’s investment in “Project Rocket” which is aimed at doubling its share of the Australian corporate bookmaking market to 20% by 2015. Its 5% share of horse racing wagering turnover among corporate bookmakers lagged well behind its 24% of online sports wagering when the firm announced its Project Rocket initiative.
The sports betting market in Australia is very competitive and in recent years the market has been dominated by Paddy Power’s efforts to build a bigger market share. Paddy Power bought Sportsbet in 2009 increasing its market share in the Australian market from approximately ten percent to twenty percent. Paddy Power achieved the substantial growth by acquiring International All Sports, a horse racing specialist and paying attention to the expanding needs of the market according to the Australian Racing Handbook.
Sportingbet has other offerings besides sports betting such as, financial betting, online poker, and casino games including backgammon. The company has over 2.5 million registered customers in 200 countries, who place over one million bets with all of its offerings every day.





Related news

Return to Latest News