Sportsbook Has Too Many WinnersPublished June 8, 2013 by OCR Editor
Ladbrokes issues shock profit warnings to stockholders due to an exceptionally high number of winners.
Remember the old saying "One man's loss is another man's gain?" Well online gamers, listen to this one:
Ladbrokes, Britain's second largest bookmaker, has issued a shock profit warning. The company, which operates more than 2,000 betting shops in Britain, warned that it expected annual operating profits to fall this year after a poor first-quarter performance in horse racing and online gaming.
And why is this so? Too many winners! Is this not a major online casino gaming fantasy? Except this time it is real, very real.
There's Always A Chance To Win
Yes, we know that odds are usually in favor of the house. Usually. But every now and then any online gamer can latch on to a winning streak. And that's just what happened at Ladbrokes after an unusually high percentage of winners earlier this year. So many winners in fact that the company had to issue an explanation to its shareholders.
Chief executive Richard Glynn said conditions on the British high street were very difficult. "The trading environment and economic conditions since the start of the year have remained challenging," he said in a statement.
The company has also blamed Racing Results for its poor figures, as it paid out on a number of favorites that won during this year's Cheltenham Festival.
An old truism in the gaming world is that Bookmakers tend to suffer when a string of favorites win, as more punters will have bet on them and therefore need to be paid their winnings.
Come Join The Crowd Of Winners!
Conversely, when favorites fall short - as Tiger Woods did in this year's Masters Tournament at August - the bookies tend to make a large profit.
So over the long run, the mathematics of bookmaking is designed to ensure that the profits from failing favorites more than cancel out the losses when they win.
What does all this mean: Translated, Ladbrokes Has Had Too Many Winners! So what better time than now to go check them out.