Ladbrokes buy Betdaq

Diamond Geezer

Diamond Geezer

Gone But Not Forgotten
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May 2, 2003
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Ladbrokes have bought Betdaq - deal just announced to the Stock Exchange this morning ten minutes ago.

From RP

LADBROKES has acquired betting exchange Betdaq in a deal worth €30 million (£25m) it was announced on Thursday morning.

The deal between Ladbrokes and Betdaq's billionaire owner Dermot Desmond was close to completion on Wednesday night,
and in addition, Ladbrokes has agreed to acquire a ten per cent stake in TBH Guernsey Ltd, the technology provider to Betdaq, for €4m.

For Ladbrokes chief executive Richard Glynn, the acquisition is the first of his tenure, which began nearly three years ago.

The high street bookmaker has been previously involved in acquisition talks with 888 Holdings and Sportingbet but discussions were unsuccessful, with Sportingbet acquired by rival William Hill and GVC Holdings last month.

The acquisition is expected to be completed late next month, and Glynn said: "The Betdaq exchange is a well-regarded and well invested business and a close strategic fit for Ladbrokes.

"Whilst the main focus of our digital growth strategy continues to progress well, this bolt on acquisition provides us with an exciting opportunity to grow our share of wallet through the creation of a differentiated and comprehensive sports betting proposition for customers and also supports our drive for improved liability management."

Following the news of the acquisition, the share price for Ladbrokes had risen 6.90 pence to 206.30 pence at 9.20am.
 
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I got out last summer. The first rat to leave the sinking ship. Can see a few of my ex-colleagues jobs in risk being lost.


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I wonder if Ladbrokes will maintain the lower 3% base commission rate currently offered by Betdaq?
(I guess they will have to if they wish to retain the few customers Betdaq already has, seeing as that lower commission is Betdaq's main unique-selling-point over Betfair).

I do honestly hope that Ladbrokes's marketing skills and experience can persuade a goodly number of Betfair customers to jump ship -- I reckon there are many Betfair clients who are thoroughly dissatisfied with Betfairs arrogance, customer service and premium commission charges.
 
icebreaker said:
I reckon there are many Betfair clients who are thoroughly dissatisfied with Betfairs arrogance, customer service and premium commission charges.
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I didn't miss and hit the wall when I recently completed their online survey (though I doubt they pay any attention to negative feedback).
 
I don't think there is any money to be made out of an exchange thats highlighted by Betfairs move to a fixed odds sportsbook.
 
Letter to Betdaq customers


Dear Sir

Ladbrokes plc, one of the world’s leading betting and gaming companies, has today (24th January 2013) agreed to acquire the BETDAQ exchange business. The transaction is subject to certain conditions and is expected to complete in late February 2013.
What does this mean for you, our valued members?
Whilst ensuring that the integrity of the exchange is fully protected, we believe that combining the strengths of Ladbrokes with the expertise of BETDAQ will have a hugely positive impact on the betting experience for our customers.
On completion, Ladbrokes will work with BETDAQ to further enhance the competitiveness of the exchange, focusing initially on growing liquidity and event coverage, as well as expanding the range and depth of markets offered.
How to access the website and how to contact us will stay the same, and we will continue to offer our great low commission rates and promotions. We will of course keep you informed of when any key developments or enhancements that may affect you are likely to happen.
Our ultimate ambition is to bring all the great elements of Ladbrokes and BETDAQ together and create an unrivalled betting experience for all our members.

The BETDAQ Team
 
That may -- or may not -- be correct, but is completely irrelevant to the topic at hand and also irrelevant to your statement of " I don't think there is any money to be made out of an exchange".
 
icebreaker said:
That may -- or may not -- be correct, but is completely irrelevant to the topic at hand and also irrelevant to your statement of " I don't think there is any money to be made out of an exchange".
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Why are you being pedantic? 3 million annual gross profit for Ladbrokes wouldn't cover the cost of Racing Posts for head office staff. Its of no benefit.
 
No, I'm not being pedantic.
You said there was no money to be made from Betting Exchanges.
I would like you to address and back-up that claim in light of last year's 3 million net profit -- rather than blathering on about FOBT's or about the monthly outlay that Ladbrokes expends on Racing Post subscription.
 
icebreaker said:
No, I'm not being pedantic.
You said there was no money to be made from Betting Exchanges.
I would like you to address and back-up that claim in light of last year's 3 million net profit -- rather than blathering on about FOBT's or about the monthly outlay that Ladbrokes expends on Racing Post subscription.
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So you think Ladbrokes bought an exchange to win 3 million a year?
 
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