Ladbrokes is acquiring Global Betting Exchange Aldrerney for €30 million ($40.1 million USD) in a move that could seriously shake up the UK betting exchange market.
In a press release, Ladrokes officials laid out a number of reasons behind the purchase, including a desire to build out their digital brands and provide a broad range of services to their customer base.
The release also points out that, “A large proportion of Ladbrokes’ customers already use a betting exchange.” This suggests that Ladbrokes has been feeling the heat from popular betting exchanges like Betfair.
Company CEO Richard Glynn wasn’t quite so forthcoming in his remarks, but he hinted at as much nonetheless:
The Betdaq exchange is a well-regarded and well invested business and a close strategic fit for Ladbrokes…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.
The deal should be all wrapped up by the end of February.
What do you think of Ladbrokes’ move into the betting exchange business? Share your thoughts in the comments section below.