Questions over Denmark as Ladbrokes withdraws

Questions over Denmark as Ladbrokes withdraws

Thursday, July 9, 2015 Totally Gaming
Andrew Bagguley says Ladbrokes will focus on more promising markets

Ladbrokes will focus on more rewarding markets after deciding to close its poorly performing operation in Denmark.

The company told customers this week that it was ceasing trade in the country – where it has offered sports betting, poker and casino for the last three years - with immediate effect.

A statement released to TotallyGaming.com said that the Danish operation “has not delivered a satisfactory level of profit since the market regulated in 2012” and that “resources hitherto invested in Denmark will be re-focused on other territories, as the latest stage in Ladbrokes' international and digital turnaround”.

Andrew Bagguley, managing director digital at Ladbrokes, added: “Our renewed focus is very clearly on investing in those territories which show evidence of or the potential for significant growth. We will reallocate resources towards growing our [digital] operations and infrastructure in other priority territories to grow our recreational customer base and deliver market-leading products and services there.”

The decision comes at a time of change in Ladbrokes’ international operations, with the company announcing in February that its international team was undertaking a fundamental review in the first quarter of the year. Last month it revealed a restructure of its international operations with managing director (international) Damian Cope leaving the business and nine roles in the centrally-based international team placed at risk of redundancy.

While it announced some digital figures for jurisdictions such as Australia, Belgium and Spain in its 2014 results, it did not reveal its performance in Denmark. 

In a statement to customers, Ladbrokes said: “We are writing to you to inform you that Ladbrokes.dk will stop operating in Denmark. We therefore close our website down for new registrations, and receipt of bets will stop with immediate effect.

“We would like to thank to thank you for your loyalty to Ladbrokes.dk, and wish you the best for the future.”

Companies operating in Denmark must pay a licence fee, plus 28 per cent corporation tax and a 20 per cent additional gaming tax on gross gaming revenue (GGR).

Denmark has seen reasonable growth in online gaming each year since Danske Spil’s monopoly was ended in 2012, with DKK2.9bn (€390m/$430m) in GGR in 2014, up 39 per cent on the first year.

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