Cubswin
10-15-2004, 08:18 PM
... not a poker room... but a betting shop.
High street opening for ukbetting link (http://www.egrmagazine.com/cgi-bin/articles.pl?section=3&id=406&action=display)
Ukbetting, the online betting and sports content firm, has bought a chain of high-street betting shops as part of a major new focus on retail betting.
The firm bought seven licensed betting offices in south-east England, from Campbell’s bookmakers for US$2.16m.
And the firm is in discussions with other parties to more than double the amount of stores it bought.
“We are in active discussions with third parties with a view to substantially increasing the size of this nascent portfolio,” said Peter Dubens, executive chairman of ukbetting.
High-street betting is big business in the UK, with Ladbrokes and William Hill having nearly 4,000 shops between them.
The acquisition of Campbell’s stores marks ukbetting’s first entry into the offline market.
But the company said it should be seen as additional channel, rather than a change in corporate direction.
“The acquisition of Campbell’s represents the next step in bringing greater scale to the business and illustrates our intention to broaden ukbetting’s routes to market.”
An increasing number of firms are looking at the UK retail sector as both a marketing and revenue opportunity.
Both Victor Chandler and Paddy Power have increased their offline presence in the UK recently.
And firms are particularly attracted by the £400 weekly profit being made by fixed odds betting terminals located in high street outlets.
UK regulations permit four FOBTs per store, and a ukbetting spokesman said there was potential to increase the amount of terminals in Campbell’s existing shops.
“It’s an important market for us and it is our intention to grow organically, as well as through acquisition, Trevor Beaumont, managing director of gaming for ukbetting, said.
Campbell’s is expected to take around £10m in revenue this year, and is predicted to turn a profit.
Funding for the acquisition was provided by a £1.2m senior debt facility with the Bank of Scotland.
"We are delighted to be able to support ukbetting plc in its first acquisition of an LBO business,” David Scott, a director of Bank of Scotland Corporate, said.
High street opening for ukbetting link (http://www.egrmagazine.com/cgi-bin/articles.pl?section=3&id=406&action=display)
Ukbetting, the online betting and sports content firm, has bought a chain of high-street betting shops as part of a major new focus on retail betting.
The firm bought seven licensed betting offices in south-east England, from Campbell’s bookmakers for US$2.16m.
And the firm is in discussions with other parties to more than double the amount of stores it bought.
“We are in active discussions with third parties with a view to substantially increasing the size of this nascent portfolio,” said Peter Dubens, executive chairman of ukbetting.
High-street betting is big business in the UK, with Ladbrokes and William Hill having nearly 4,000 shops between them.
The acquisition of Campbell’s stores marks ukbetting’s first entry into the offline market.
But the company said it should be seen as additional channel, rather than a change in corporate direction.
“The acquisition of Campbell’s represents the next step in bringing greater scale to the business and illustrates our intention to broaden ukbetting’s routes to market.”
An increasing number of firms are looking at the UK retail sector as both a marketing and revenue opportunity.
Both Victor Chandler and Paddy Power have increased their offline presence in the UK recently.
And firms are particularly attracted by the £400 weekly profit being made by fixed odds betting terminals located in high street outlets.
UK regulations permit four FOBTs per store, and a ukbetting spokesman said there was potential to increase the amount of terminals in Campbell’s existing shops.
“It’s an important market for us and it is our intention to grow organically, as well as through acquisition, Trevor Beaumont, managing director of gaming for ukbetting, said.
Campbell’s is expected to take around £10m in revenue this year, and is predicted to turn a profit.
Funding for the acquisition was provided by a £1.2m senior debt facility with the Bank of Scotland.
"We are delighted to be able to support ukbetting plc in its first acquisition of an LBO business,” David Scott, a director of Bank of Scotland Corporate, said.