• Shares in both companies surged on news of proposed deal[br]• Exchange and traditional margins likely to rise
When the Betfair betting exchange was launched in the summer of 2000 its founders famously dressed as mourners and staged a mock funeral to mark what they claimed was “the death of bookmaking”. At the time Betfair was just one among several small start-ups testing the possibilities of online gambling. Eighteen months later it was the clear leader in the exchange betting market and growing so rapidly that predictions of doom for bookies suddenly seemed a grand deal more plausible.
Betfair has remained the dominant player in the exchange market ever since,with every meaningful number in its annual accounts increasing year on year. It has added a traditional sportsbook and gaming products, started to buy into the US market and employs nearly 2000 staff around the world. It has become a major global player in the gambling market from a standing start 15 years ago yet that, or it seems,is still not enough. Far from burying the bookie, it has now decided to jump into bed with one and merge with Paddy Power in a deal that will leave its partner with 52% of the shares.
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Source: theguardian.com