Ladbrokes Announces Italian Betting Expansion

Ladbrokes, one of the world's leading betting and gaming groups, has announced plans to invest €100,000,000 to develop its Italian business. The planned investment will see Ladbrokes establish high street shops, non-dedicated outlets, and internet and telephone betting operations over the next five years.

The first step in this process has been to sign a joint venture partnership with Italian company Pianeta Scommesse, one of Italy's most important betting service providers. Pianeta Scommesse was formed in 2003 and now offers services such as a connection to the Italian government agency SOGI, odds provision and technology to betting shops. The joint venture will establish Ladbrokes as an accredited provider of betting shop services in Italy.

Under the terms of the joint venture deal, Ladbrokes will take a majority 51% stake for €1,300,000, to be paid in stages to an Italian company, Controlle Pianeta Scommesse Italia SRL.

The new venture will target further opportunities for betting franchises as the Italian government moves ahead with its plans to liberalise the licensing regime for betting shops. Under Italian law all bookmakers must process their bets through a provider that is connected to a government database, enabling the tracking of bets for tax purposes. Providers also supply odds and liability management services to bookmakers.

There are around 770 licensed betting shops in Italy serving a population of a similar size to the UK. Yet in the UK, there are over 8,000 betting shops!

The Italian government has recently allowed slot machines in betting shops and has begun to reduce the rate of tax for sports bets. Under proposals within the new "Bersani Decree", the Italian government is set to further reform the market and expand the number of sports betting licences to 7,000 new outlets, 2,100 of which will be dedicated shops. There will also be an additional 10,000 licences for horseracing outlets, 500 of which will be dedicated shops. Taxation of sports bets will also be reduced from 17% to between 2 and 8%, depending on turnover. The government is expected to publish more detail on the tender process for the new licences later this year.

Notwithstanding the limited number of betting shops currently available in Italy, the legal Italian sports betting market for 2005 was worth €1,490,000,000 and the horseracing betting market was worth €2,200,000,000. The total gaming market in Italy is worth €28,000,000,000. These are figures sourced from the Italian gambling regulator, Monopoli di Stato.

The Chief Executive Officer of Ladbrokes plc, Christopher Bell, said:

"With the process of liberalisation of the market now under way we believe Italy offers significant potential for the world's biggest betting brand. The proposed new licensing framework will see an expansion of the market and the combination of Ladbrokes' expertise in marketing, technology and operations and Pianeta Scommesse's local knowledge will be well placed to benefit from the reforms."

The Chairman of Pianeta Scommesse, Roberto Righetti, said:

"Ladbrokes, as the world's leading bookmaker and a global brand is the perfect partner for Pianeta Scommesse. With recent Government changes in taxation and proposed changes in licensing now is a good time for a global player such as Ladbrokes to invest in the Italian market and they represent an excellent strategic partner for Pianeta Scommesse. We are sure that Ladbrokes brand will appeal to Italian customers."

Ed note: At Ladbrokes, new Sportsbook players can claim a $100 instant play poker bonus

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