This week Ladbrokes positioned itself for a stronger attack on the online and mobile gambling market through a deal with Playtech.
After the deal was announced Ladbrokes’ shares jumped to a five year high with investors encouraged by the news. Ladbrokes will be taking on 40 members of staff from Playtech in order to form a new digital marketing team.
Furthermore, by the end of this year Ladbrokes customers will have access to Playtech’s 200 casino games before the two companies gaming assets are merged into one platform.
Until now Ladbrokes has been struggling to keep up online with competitor William Hill. Earlier this month William Hill took full control of its internet venture which it had previously ran with Playtech.
Ladbrokes believes that the deal will help spur its own growth but made no comment about predicted profits. Ladbrokes CE Richard Glynn said, “I’m very confident that over the next five years this is going to allow us to accelerate (underlying earnings growth).”
Playtech will be entitled to royalties generated under a software agreement with Ladbrokes, they will also receive a “success fee” of 27.5% of any increase in Ladbrokes’ core earnings for 2017