The world's largest bookmaker has inked a deal that will bring its betting service to every U.K. digital TV platform, making it the first U.K. bookmaker that can make such a claim.
Ladbrokes announced yesterday a deal with BSkyB that will bring sports betting to the only digital service provider that the bookmaker had yet to team up with. Bettors will soon be able to wager through Ladbrokes using BSkyB's Sky Active digital TV service.
The deal was made possible after Ladbrokes chose OpenBet, the interactive gambling system from Orbis, a world-leading provider of interactive betting technology. OpenBet is already used by Ladbrokes to manage its Internet and WAP betting platforms as well as its recently updated telephone betting call center.
Ladbrokes has come full circle with Interactive TV betting as well, the company was the first to launch a service in 1999 and now becomes the first bookmaker on all four digital TV platforms. Ladbrokes uses the OpenBet system across the other three digital TV service providers, NTL, Telewest and ITV Digital.
In adding BSkyB to its portfolio of sports betting partners, Ladbrokes will now be available to more than 6 million homes in the United Kingdom through digital TV.
Charles Malir, marketing director at Orbis, said the timing of the deal is critical for Ladbrokes to have the added consumer base.
"As every major bookmaker in the U.K. starts to gear up for the World Cup this year, we are pleased that we have helped Ladbrokes to become as ubiquitous as possible," he said. "We look forward to the continued success of Ladbrokes on the digital TV platform."
Company officials from both Ladbrokes and Orbis said the OpenBet system will continue to be refined and future generations will allow for running betting. With the running bet option, punters will be allowed to place bets while the sporting event is going on.
The move was a crucial one for BSkyB as service providers continue to search for ways to increase revenue from digital TV. Although viewers have access to instant shopping and pay-per-view movies, BSkyB recently announced that nearly 60 percent of its revenues from interactive TV come from sports betting services.
Nick Rust, commercial director at Ladbrokes, felt it was important for Ladbrokes, as the world's largest bookmaker, to get into as many homes as possible.
"We are delighted that our customers can now bet with us via every major online channel," he said. "Orbis has yet again proved its capacity as a key strategic partner for Ladbrokes."
The deal between BSkyB and Ladbrokes comes four months after original talks between the two companies broke down. They were trying to form an exclusive joint venture that would have created a sole fixed-odds betting partner for Sky's interactive TV. The formation of the 50-50 joint venture created rumblings with other High Street bookmakers who felt they were being left out of a potentially huge market.
Ladbrokes spokesperson Cairan O'Brien said the new deal was made possible because the structure is vastly different than what was being discussed in the past.
"The previous talks fell apart because the two sides couldn't reach agreements on a lot of things," he said. "The monopoly issue was in the background, but the main reason was because they couldn't agree on how to structure the whole deal."
The current agreement will have Ladbrokes' services offered through BSkyB alongside existing betting partners like Bluesquare. O'Brien said the lack of an exclusivity clause and other bookmakers already being on board helped cinch the deal for Ladbrokes.