The industry leading UK gambling group, Ladbrokes, has confirmed that it has purchased the Australian online sports betting group, Betstar. Rumors were circulating in a number of media reports recently that Ladbrokes paid A$22 million for the group, a number that was also confirmed by the UK powerhouse.
Betstar performs well in its predominantly Australian market, boasting around 40,000 registered customers. In its past financial year, Betstar customers staked $214 million and the company generated gross wins of $12.9 million.
Ladbrokes will not cannibalize the Betstar brand and has said that it will maintain the brand.
Ladbrokes already has a several interests in the Australian market. In 2013, the company set up Ladbrokes.com.au, following the purchase of Bookmaker.com.au.
“Australia represents one of the most vibrant regulated sports betting markets in the world and today’s announcement will see us add new customers to our growing presence. It offers us a chance to improve our market share and bring the innovative product development and marketing skills displayed by Ladbrokes.com.au to a wider audience,” said Damian Cope, the managing director of Ladbrokes’ international operations.
The purchase will provide Ladbrokes with a stronger presence in Australia, especially as it struggles to keep up with competitors on its home turf in the UK. Ladbrokes has not managed to keep pace with rival William Hill’s online growth and is looking at other markets to maintain revenue growth.