After three years of promises, negotiations and disappointment, Ladbrokes’ CEO Richard Glynn has finally acquired an online gambling company.
The company comes in the form of betting exchange, Betdaq, which will provide a boost to Ladbrokes’ ailing digital business.
Despite running impressive products such as the Microgaming-powered Ladbrokes Casino, the UK bookmaker has struggled in the online environment since its online poker product went downhill around 2009.
Betdaq has been bought for £25million from Irish businessman and financier Dermot Desmond. Desmond also has a 2% stake in Ladbrokes meaning that he will continue to profit from the betting exchange’s future success.
The completion of the deal will come as a huge relief to Richard Glynn who entered the business in 2010 with his plan to galvanise the company. A significant part of this plan was to acquire online businesses that were already succeeding in the online gambling environment to boost revenue from this burgeoning sector.
Having come close to purchases of 888 and Sportingbet, Glynn had been unable to clear the final hurdle. The failure to takeover Sportingbet was highlighted when William Hill later swooped in and is in the process of acquiring the company in conjunction with GVC Holdings.
Ladbrokes revealed earlier this month that the Betdaq deal had been far from straightforward either as talks are said to have taken up to a year. Glynn’s challenge will now be to insure that Betdaq grows significantly. It’s currently estimated to be around 20 times smaller than the betting exchange market leader, Betfair.