Poll results: Ladbrokes backed to find immediate success Down Under
Half of poll respondents consider Australian investment to be a wise move for struggling bookmaker
Ladbrokes will find immediate success in Australia following its acquisition of sports betting operator Gaming Investments earlier this month, according to respondents to this week’s poll.
Fifty per cent of eGaming Review readers have backed the operator to adapt well to the market and follow in the steps of rival operator Paddy Power which continues to increase its market share in the country.
Ladbrokes’ move into the country came as something of a surprise, but its acquisition of Gaming Investments for £13m has been widely considered to represent good value for money.
Ten per cent believe the bookmaker will find success in Australia, but consider that it may take some time as Ladbrokes prioritises its domestic operations first and foremost.
Others, however, believe Ladbrokes have made a mistake with 27% of correspondents believing that the company will struggle to make inroads in Australia. Player acquisition costs are up to ten times higher in Australia than in Europe, and recent clampdowns on gambling advertising have contributed towards the uncertainty.
Ladbrokes hopes that taking Gaming Investment’s affiliate arm Panda Gaming as part of the deal will help to alleviate these acquisition costs, while at the same time bolstering its understanding of the needs of Australian bettors.
Thirteen per cent of correspondents consider the company to have made a complete error of judgement in moving into the Australian market. Peel Hunt analyst Nick Batram agrees, considering Ladbrokes as coming “late to the party”, and has questioned the size of its offering compared to others.
Back at home, Ladbrokes recently announced it second round of redundancies of the year with up to 75 jobs at risk following the operators tie-up with Playtech.