Forget everything we told you about how the Ladbrokes-Gala Coral merger will make them the biggest player in the UK gambling market. Paddy Power and Betfair have agreed on a deal to merge the two betting giants and create one of the largest gambling organisations in the world. It is believed that both brands will retain their distinctive identities.
Not too long ago, betting firms Ladbrokes and Gala Coral unveiled a long-awaited deal to create a £2.3bn gambling giant, then the biggest bookmaker in the UK. With nearly 4,000 betting shops and 30,000 employees, the combined group surpassed William Hill as Britain’s biggest bookmaker, despite having to sell some outlets to satisfy any concerns from competition authorities. Both brands have been maintained.
Bigger and Better
Now, Betfair and Paddy Power are set to blow that deal out of the water in a merger worth £5 billion. The deal will see the two firms amalgamate their back-room operations whilst maintaining separate brands, becoming one of the world's biggest online betting and gaming companies.
Paddy Power shareholders would own 52% of the combined business, with Betfair investors owning the remaining 48%. The combined business would have annual revenues of approximately £1.1 billion.
What This Means For the Players
Its unlikely that anything drastic will happen on the customer side of this merger as the two brands are set to stay separate and continue to work on their own projects.
What is possible now, however, is that Betfair and Paddy Power may be able to offer better odds to the sportsbook players and more casino games may be shared amongst the two brands. Watch this space!