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Ladbrokes Exits Denmark As Merger Talks ContinuePublished July 9, 2015 by Lee R
Ladbrokes stands to gain more by merging with Gala Coral that fighting to bring up revenues in Denmark.
Unable to integrate into the Danish market effectively, Ladbrokes is pulling out.
Danish Operations Cease
The bookmaker confirmed the decision via a statement on the soon to be terminated Danish version of its website, giving Danish players a window until July 31st to withdraw the now unplayable funds in their accounts. New Danish customers are now unable to sign up for Ladbrokes, and no more bets will be accepted by Ladbrokes from Danish players at all.
Unconfirmed speculation is that revenues were falling too far short of profit goals. Whatever the reason, Ladbrokes has its attention elsewhere right now, as talks with traditional rival Gala Coral about a merger are heating up, so struggling in a new market has no appeal for the bookmaking giant.
The competitive move for most iGaming providers feeling out different regulated markets is to hedge their risks by merging with competitors. In effect, regulation is a greater hurdle to overcome than market competition these days, so Ladbrokes like others may be seeking to strengthen its infrastructure before extending into unpredictable newly regulated markets, keeping in mind that each new market represents its own set of rules, taxes, and licensing.
Ladbrokes and Gala Coral have openly confirmed ongoing merger talks between the two, regarding a possible deal that would include the integration of Gala Coral-operated Coral Retail, Eurobet Retail as well as Gala Coral's online businesses.
Issues still remain regarding a final price and the integrated senior management structure at the top of the proposed diversification under current Ladbrokes chief executive officer Jim Mullen.
Combine Forces to Sustain
The deal is part of Ladbrokes increased strategic focus on building its digital scale and corporate sustainability.
Ladbrokes is just one of many iGaming operators undergoing or exploring similar deals for organizational evolution and sustainability across the diverse and multiple channels that newly regulated markets proliferating globally represent.