British publications are reporting that U.K. bookmaker Ladbrokes could be in takeover talks with Dublin-based betting exchange Betdaq, although Betdaq is denying the reports.
"Betdaq continue to work with Ladbrokes on a number of levels, but as far as we are concerned these rumors are nothing more than market speculation," Betdaq spokesman Russ Wiseman said, as quoted by Thoroughbred Times. "Betdaq look forward to growing and building the business independently in the future and our focus is on continuing to enhance an outstanding product."
The Irish Independent reported on Tuesday that Ladbrokes is in negotiations to acquire some or all of Dermot Desmond's betting empire, which includes Betdaq, racecourse betting pitches, betting shops and a casino.
According to the newspaper, a Ladbrokes source speaking at the Paddy Power Open at Cheltenham confirmed that negotiations have taken place; however, he added, "There is a big gap between the sides as regards the price."
Ciaran O'Brien, head of PR for Ladbrokes, could neither confirm nor deny the rumor today.
Desmond founded Betdaq in 2000 and has struggled to compete with rival exchange Betfair, which continues to dominate with an estimated 81 percent market share by value.
Desmond's empire includes two betting shops operating under the Chronicle banner, the flagship of which is located on the ground floor of the Sporting Emporium in Dublin.
Just how much of the operation Ladbrokes is after is up for debate, but observers are speculating that the company is interested in the betting shops.
Ladbrokes has already invested an estimated 16 million euros in Irish betting shops this year, buying a dozen shops from one seller for about 11 million euros and 10 from another for an estimated 5 million euros.
"It is no secret that we are looking to expand in Ireland," says Ladbrokes spokesman David Williams. "We have bought more than 20 shops this year and we are continuing to look at international expansion in a number of territories."
Ladbrokes announced this week the purchase of three betting shops in Turin, Italy--the company's first purchase in Italy since announcing a joint venture with local operator Pianeta Scommessee on Aug. 24. More deals are expected in Italy, where Ladbrokes CEO Chris Bell hopes to build up an estate of roughly 200 shops contributing an estimated $38 million to company profits.
Ladbrokes is also in the very early stages of merger talks with 888, according to O'Brien. No proposal has been made, he said.