Betfair & Paddy Power to Merge

So today’s big news is the announcement that Betfair and Paddy Power are to merge. As someone who makes a living from the betting exchanges this is obviously very important news to me. So what’s my thoughts on it?

Over the years there have been many changes to the exchanges. We have seen Betdaq emerging as a serious alternative to Betfair. Betfair established the Sports exchange and did it very well for many years. Since the Company went public they have been losing their way. It seems they want to be a mainstream Bookmaker and the ship is being steered that way whatever they say. So what does this mean for us? The exchange user.

If we look back over the years and the massive changes that Betfair have introduced. Starting with Cross matching, Premium Charge and the Sportsbook. All have impacted the exchange. Some in more noticeable ways than others. But it rolls on. yes, it’s imperfect, but it still works and I am still able to operate with reasonable results. Is this the end? NO!!!!

There is lots of scaremongering going around the forums and Twitter. Many think Paddy Power are going to close the exchange down? isn’t that a bit like buying a new car and then setting it on fire outside your house? It would make no sense. My concerns lie with the longer term strategy. Whatever way you look at the betting industry moving forward into the next decade and beyond. Online gaming is where it’s at. If it’s true that most of a bookmakers profits come from F.O.B.T’s in their shops, It’s clear to see that the Government are on that gravy train and will either want a bigger piece of the action or the “outraged” lobby will have their way and get them banned or make the stakes akin to a 2p slot machine in Brighton pavilion.

Lets remember that Paddy Power have acquired Betfair. NOT the other way around, Has Paddy Power spotted that Betfair has an awesome Sportsbook? No chance. We all know that’s a joke. They offer the worse prices across the industry. But they do have a 3.9 million user database. So in effect PP will have going on 4 million new customers (minus the 1m Betfair users that they have banned 🙂 ) Did Ladbrokes close down Betdaq when they acquired it? No, No one can argue that Betdaq is in a better place now.

The exchange model is here to stay. people want it, and it makes money. The very best businesses are the ones that give their customers what they want. Not what they want their customers to have. Betfair have lost their way, no doubt about that. I don’t really care anymore what they do. One door closes and another always opens.

 

3 thoughts on “Betfair & Paddy Power to Merge

  1. Hi Steve,

    I agree with you it’s not the end of the exchanges in fact it can only improve things I think. As a part time trader I’ve become to hate bookies probably like all other traders, but the one thing I will say about PP is they have a serious marketing side to them probably the best in the business. If they see the potential in the exchange and market it properly it would be only good for us.

    I’m from Ireland and have tried to explain betfair & exchanges to friends & colleagues with no luck. “PP are your only man sure they do great specials and all”. I don’t know any other traders in Ireland I’m sure there are a few around but if PP push it over here it will defo bring more people to trading.

    If they really push the exchange it could become massive. Also they have broken into so many other countries now they may see it as a great tool to have.

    If all else fails and they close it up I’m sure the whole in the market won’t last very long.

    Just my thought

    Mark

  2. Will Paddy Power reopen my account and offer me some of the best odds on the market knowing that I am laying it off? So maybe putting them in a win win situation. I don’t think so I think they can see the writing on the wall and they should know. Only they will know how many accounts they have had to close. Betdaq could be the way forward and one way of taking a dig at PP.

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