Bookmaker News – Are More Mergers On The Cards?

Betting Firms Set To Make Power Bids Ahead of UK Regulatory Review

Bookmaker News

To call it the silly season as far as betting firms are concerned is to undervalue the staggering amounts of money being discussed regarding possible mergers and takeovers within the bookmaking industry.

While chief executives are not exactly running scared, most betting CEOs are fearful that their firms could miss out as holding companies target popular bookmakers in a bid to find strength in numbers – bringing online systems together on a single platform can, of course, cut costs dramatically and boost share-holder dividends. Sharing marketing spend is another way of saving the pennies and unifying back-office functions can reduce wages.

Gambling groups believe greater size can help to stave off competition from new online betting firms with less overheads and also help them cope better with increased regulatory scrutiny. New, enlarged companies could still operate several different brands.

A previously-thwarted merger between Isle of Man-based online group GVC Holdings and UK bookmaker Ladbrokes Coral is reported to have been resurrected with the two companies further towards completing a deal than previously believed according to several sources.

GVC turned its interest towards Ladbrokes Coral last year, having previously opened talks with William Hill. They are keen to expand their sports betting business and believe Ladbrokes Coral represents a better fit than William Hill, though neither bookmaker’s board is enamoured by the fact that GVC still have interests in Turkey, where most forms of gambling are banned and the government actively seek out those who flirt the law.

The Stars Group (formerly Amaya) were thwarted in their bid for William Hill last year but the Canadian operation still hasn’t given up on the deal, though William Hill’s largest shareholder, Parvus Asset Management, remain a formidable obstacle. Rank and 888 proposed a merger last year with William Hill but that came to nought but it’s not of the question that you could be betting with what is essentially the same company whether your account is with Ladbrokes Coral, William Hill or Paddy Power Betfair in the years ahead.

William Hill