NEWS > ANALYSIS
Furthermore, Betdaq represents Ladbrokes' third attempt to push through a deal in Glynn's tenure. After failing with bids to acquire Sportingbet and 888, there is arguably more pressure than ever to see a deal through to completion. But is splashing out on Betdaq, a company that has a minority share of the market compared to exchange goliath Betfair, the right deal to spark a revival? As Glynn attempts to drive up the operator’s share price, one reason for the acquisition and subsequent integration would be Ladbrokes’ potential ability to offer ?xed-odds and exchange betting on a single platform, preventing customer leakage to Betfair. “Lads needs to improve its sportsbook and it will probably get there eventually, but once it gets there it will probably still only be a slightly different shade of what Hills and Paddy Power have already got,” says Batram. “Beyond brands, differentiation is difficult, so if they’ve got an exchange as well as its ?xed odds offering, there will be fewer reasons for customers to leave the environment that they’re in.” Grabbing a share of a market in which liquidity is paramount will be a costly and lengthy process. And with Lads reportedly still a long way from overhauling its customer-facing platform it will take more than the addition of Betdaq to win onlookers over. Simon French, analyst with Panmure Gordon, says: “Lads is effectively buying a business that is loss making and that requires investment in order to compete with Betfair. There may be some bene?ts in terms of cross-selling to Betfair's existing customer base, but the strategic and ?nancial logic isn’t obvious.” Brand new Meanwhile Gamesys (itself the subject of recent acquisition rumours), surprised most in the industry when it announced the purchase of Virgin Games at the turn of the New Year for an undisclosed sum. Since its launch in 2004, Virgin Games has acted as a best of breed casino content portal, with agreements signed with a number of suppliers including Playtech and Microgaming and hosting close to 300 games. It also operates bingo and poker via Virtue Fusion and Spielo G2’s International Poker Network, and launched mobile and tablet offerings in December 2012. Yet for Gamesys the decision to acquire Virgin Games was all about brand; the deal combines Gamesys’ market-leading software with one of the most recognisable, powerful brands in the world. Run by Simon Burridge since it was formed, Richard Branson’s gaming venture has reportedly sought investment for a number of months in a bid to expand the business across Europe. However, with its relatively small budget it has been unable to withstand the long-term costs of entering and successfully growing in newly-regulated markets. To many in the industry, the company simply hasn’t made the most of Branson’s famous trademark. One of Gamesys’ main strengths is partnering with and developing third-party brands. It has a good track record, with hugely successful launches of magazine, newspaper and television show-branded bingo games including its ?agship bingo brand Jackpotjoy. Harnessing Virgin’s well-loved corporate identity also ?ts in perfectly with Gamesys CEO Noel Hayden’s plans to create an “entertainment brand” that does gambling, rather than the other way round. One source close to the matter told eGR: “The Virgin brand is one of the biggest and best in the world but from a gaming point of view it hasn’t been managed terribly well. The best thing about Gamesys is its ability to integrate player analytics and use them effectively. The ability to determine a user’s lifecycle accurately and quickly means it can make a success of brands almost instantly.” The value of the deal is unknown, but most agree Virgin Games would have come at a moder FV???r&?6R??WB2????2?2????r?Bv???&?fR???fW7F??r?Vf????&V2?bvV??W72?F?V?7W&RF?fW'6???VB?B7W7F??&?R&WfV?VR7G&V???2&?6Rv?'F????r?&G&?6??6?VFW3?( ??&?WG2&R??f??r&?F??B??^( ?fRv?BF?&R&VFF?"?"??Rv???&V6??RF?R&W??&?vvW"??&?2&Rv???rF?vWB&?vvW"?BF??6R??F?R?FF?R?bF?R&?B?V??W72F?W??VW??f??rf?'v&B?v???v???v?W&R?( ????V???FV?v?W7?24T???DT?2D?%??# ????V'?( 2&W?'G27W&f6RF?B?F'&??W2?2??F?2v?F?&WFF ( ?2?v?W"FW&??BFW6???B?fW"FV?v??6?v?V?B6VRF?R?W&F?"?f?"F?R&WGF??rW?6??v^( ?2&?6??r?BG&F??r6??WF???2??6WFV?&W"( 2?Ww2??'7B'&V?2F?Bv?????????Bud2???F??w2&R??&V???'?F?2F??V?6?????B&?Bf?"7?'F??v&WB?v?F?F?R?&?v???FVF??R6WBf?"b?7F?&W"??7F?&W"( 27?'F??v&WB&V?V7G2 *33S??S"?WW"6?&R????BF?V?fW"?ffW"g&??????2?Bud2?Gv?vVV?2&Vf?&RF?RFVF??R?2??fV?&W"( 27?'F??v&WBw&?G2&?F?&?FFW'26V6??BW?FV?6???V?F??W???BFV6V?&W"?GVRF?F?R( ?6?VW"??V?N( ??bGVRF??vV?6R?VVFVBF?&R6'&?VB?WB&Vf?&RF&??rf?&??&?B?2FV6V?&W"( 2Tu"W?6?W6?fV?&WfV?2F?B????2?B7?'F??v&WB?V?B7'V?6?F?2GW&??rF?RvVV?V?B?b????"FV6V?&W"F?6?fvRF?R&?B?v???RF??&B&?BFVF??RW?FV?6????V?F??W????FV6V?&W"??2?6?w&VVB?BFV6V?&W"( 2????2?Bud2&V6?6??F?F????w&VV?V?BF?7V?&R7?'F??v&WB?f?V??rF?R6????B *3C?V??B&Wf?6VBSb?W"6?&R??FV6V?&W"?f?W'F?W?FV?6???w&?FVBV?F??W???#FV6V?&W"?#FV6V?&W"( 2????2?Bud26????&?7V?6?F????b7?'F??v&WB?v?F?F?Rf?&?W"F???r?v?W'6???bF?RW7G&??'W6??W72?Bw&?B?b6???F???f?"F?R7??6?'W6??W72?f?" *3CSF??BSb?W"6?&R?#0?r??V'?#2( 2?F'&??W26????&?2?B??F?67W76???2F?7V?&R?G2G&F??r?B&?6??r6??WF???2&?f?FW"&WFF?v???Rv?W7?2???V?6W2F?R7V?6?F????bf?&v??v?W2f?"?V?F?66??6VB7V??wwr?Vw&?v???R?6???#????