Coral & Ladbrokes To Merge

Lincsaddick

Two of the biggest betting shop and online bookies in the UK are getting hitched. Coral also owns Gala Bingo .. is this one for the Monopolies and Mergers Commission or whatever it's called nowadays ?

Prices ? ... Could a bigger and richer firm afford to be more generous with its odds and prices thereby forcing the other bookies to follow suit, or will the reverse apply, a big company with hundreds of thousands of customers using its clout to reduce the odds ? .. I favour the first possible scenario .. I am an optimist ..

Discuss the issue all you gambling folk out there in CAFCland

cafcfan

The Competition and Markets Authority is expected to take a look. The smart money is on the newly merged business to be required to sell off 600 shops. I wonder if they are making a market on that.....
But will they care about that? What's the split these days between on-course, in shop and on-line betting? I'm guessing the on-line share is ever increasing.

Lincsaddick

cafcfan said:

The Competition and Markets Authority is expected to take a look. The smart money is on the newly merged business to be required to sell off 600 shops. I wonder if they are making a market on that.....
But will they care about that? What's the split these days between on-course, in shop and on-line betting? I'm guessing the on-line share is ever increasing.

The shops make a fortune from the machines .. the BBC is doing a good series on Coral : 'Britain at the Bookies' on BBC1 Monday .. the first episode is on iPlayer .. well worth a look

cafcfan

Lincsaddick said:

cafcfan said:

The Competition and Markets Authority is expected to take a look. The smart money is on the newly merged business to be required to sell off 600 shops. I wonder if they are making a market on that.....
But will they care about that? What's the split these days between on-course, in shop and on-line betting? I'm guessing the on-line share is ever increasing.

The shops make a fortune from the machines .. the BBC is doing a good series on Coral : 'Britain at the Bookies' on BBC1 Monday .. the first episode is on iPlayer .. well worth a look

I watched it! Forgot about the machines! Doh! Some of those punters had a real problem especially the lad who just lobbed his dole money straight in and then lived on a can of beans all week.

mcgrandall

Machines have been the only thing that has saved the retail shops. Online just keeps growing and growing, especially since they increased the coverage of events covered inplay.

In terms of market share, Ladbrokes and Coral are so far behind the other big three that this is a pretty smart move. Ladbrokes online presence is a joke compared to their retail clout and years behind 365, Paddy's and Hill's. Coral have invested heavily in their online in the last couple of years but are coming from a smaller client base, something Ladbrokes can help with. I expect Skybet to make a big push soon as they have been investing behind the scenes for the last year in infrastructure. They should be a lot more dominant in the market considering they are a broadcaster.

cafcfan

mcgrandall said:

Machines have been the only thing that has saved the retail shops. Online just keeps growing and growing, especially since they increased the coverage of events covered inplay.

In terms of market share, Ladbrokes and Coral are so far behind the other big three that this is a pretty smart move. Ladbrokes online presence is a joke compared to their retail clout and years behind 365, Paddy's and Hill's. Coral have invested heavily in their online in the last couple of years but are coming from a smaller client base, something Ladbrokes can help with. I expect Skybet to make a big push soon as they have been investing behind the scenes for the last year in infrastructure. They should be a lot more dominant in the market considering they are a broadcaster.

Skybet is 80% owned by CVC Capital Partners with Sky doing a Richard Branson on licensing use of the name while having little to do with the actual business.

Valiantphil

They would both have closed about 100 shops each anyway.

bobmunro

Ladbrokes bought Coral 20 or so years ago - and the competition authorities then forced Laddies to sell it on! Not sure it's a good thing for either company and the punter won't be better off at all.

If you look at demographics and betting the medium of choice, certainly amongst younger people, is online, tablet, and increasingly smart phone. Neither company currently offers a digital product anywhere near as good as Hills or bet365 (I would say the latter anyway - but it's true). From a betting perspective the shops are dying and have been for years.

Addick Addict

bobmunro said:

Ladbrokes bought Coral 20 or so years ago - and the competition authorities then forced Laddies to sell it on! Not sure it's a good thing for either company and the punter won't be better off at all.

If you look at demographics and betting the medium of choice, certainly amongst younger people, is online, tablet, and increasingly smart phone. Neither company currently offers a digital product anywhere near as good as Hills or bet365 (I would say the latter anyway - but it's true). From a betting perspective the shops are dying and have been for years.

But they have to pretend that they are offering something to bet on in the shops just so the Government doesn't get wise to the fact that they have all but become mini casinos.

mcgrandall

The industry has been been cosying up to the government for years. They know full well what is happening in shops, that is why the whole industry rolled over when the govt. changed the laws on taxing internet betting a few years back. They were worried about the shops and how they would be regulated. The industry lobbied on job creation, tax revenue and freedom of choice. The conservatives have no problem with the increased revenues and don't have to change anything until it perceived to be of the public interest. Or will win them some votes.
I know they say all publicity is good publicity but I don't think coral have done themselves or the industry any favours in the long run. Stuart from Huddersfield can't be seen as anything other than preying in the vulnerable. Who has an effing limit on how much they win???