Ladbrokes Establishing Their Presence In Australia With Acquisitions
British based bookmakers are facing difficulties due to a shrinking market as well as heavy taxes set to come into play in 2014 for their offshore operations. It is for this reason that all the major players are looking to expand to less saturated markets like Australia. Ladbrokes PLC has just announced their acquisition of online bookmaker Bookmaker.com.au and sports marketing firm Panda Gaming which will see it compete with rival William Hill down under.
The Australian online gambling market is strictly regulated and is said to be worth at least $5.4 billion. This latest power play by Ladbrokes follows that of William Hill who only last month purchased online betting firm Tom Waterhouse NT for A$110 million. This was followed up by another strategic acquisition of Sportingbet PLC’s Australian arm for A$670 million.
Ladbrokes confirmed today that they paid £13 million for Gaming Investments. Bookmaker.com.au was launched in 2012 and took in in the region of $A$400 million in stakes for the year to 30 June 2013.
Ladbrokes Chief executive Richard Glynn emphasized their intentions to expand into other markets besides the UK in an effort to reduce their dependency on a shrinking market which currently accounts for 71% of their revenue. This is much more than their rival William Hill who only rely on the UK market for 43% or their revenues.