GVC Holdings are one of the most powerful sports betting and gaming groups on the planet right now. They’re responsible for sites such as Party Poker and Party Casino, plus an array of other brands in its impressive portfolio. One thing GVC don’t do is stand still, they’re always looking to strengthen their position as a leading group in the industry and have done just that after agreeing a deal to buy out Ladbrokes Coral.
Ladbrokes Coral are the UK’s biggest high street bookmaker as things stand and they have been in GVC’s sights for a long time. There have been a few failed bids for the company by GVC Holdings over the past twelve months or so, but Ladbrokes Coral finally agreed to a takeover at the backend of 2017. It’s certainly going to be another huge boost for the already impressive GVC Holdings portfolio as they’ll now not only be key players in the online world but on the high street too.
The move by GVC Holdings to secure a deal for Ladbrokes Coral will also see the Isle of Man based firm become a stronger force in the UK market too. GVC holdings have been all about online sports betting and gaming in the past, however but when they finally acquire Ladbrokes Coral they’ll be inheriting a chain of 3,500 betting shops in the UK. It’s these shops, or more the contents of them, that will decide the final price paid though.
Fixed Odds Betting Terminals, or FOBTs as they’re commonly referred to as, are big business in land based betting shops right now but they’re currently under review by the government. There’s a chance that the maximum stake will be cut from £100 down to a smaller figure and if this happens, GVC Holdings are more likely to pay closer to the £3bn mark for Ladbrokes Coral. If the maximum stake does remain pretty high, GVC could be shelling out closer to £4bn.
The takeover of Ladbrokes Coral has certainly had a positive effect on GVC Holdings on the whole as they have recently hit record sales. They smashed the €1bn (£889 million) mark for the first time in their history just a few weeks ago. There acquisition of Bwin has been responsible for a lot of revenue increases across the board and it saw GVC Holdings being propelled into the FTSE 250 market.
It’s said that the move to acquire high street betting giants Ladbrokes Coral would see GVC Holdings take an even bigger step by making it into the FTSE 100. It’s reported that they would have a market capitalisation of around £5.3bn and this is even higher than high street retail giants Marks & Spencer.
You can certainly see why GVC Holdings have been persistent in their chase to secure Ladbrokes Coral and add them to their portfolio. The move will benefit both companies massively and it would see GVC Holdings not only gain a stronger foothold in the UK market and on the high street but they would once again reaffirm their status as one of the leading groups in the industry.