Introduction of much herald Ladbrokes Betting Exchange have actually resulted to bookmaking to worry of their future. Some the troubles that the Big Bookmarkers are encountering include:
The exchange was launched with very low consideration about how to deal with the problem which has troubled similar business in the past. The consideration that was not looked in more keenly is liquidity, whereby it is supposed that if there no liquidity then the punters should not also be there. You cannot take a cow to water if the river is dry.
There was a glance made by experts on this issue and realized that there is a huge gap between the prices offered on the new exchange.
Challenges Facing the Big Bookmarkers
Ladbrokes released its third profit warning in the year 2013, this led to the stakeholders putting pressure on chief executive. The profit warning raised rumors that may be this could cause the gambling site to be overtaken by the other rival sites which are good competitors’ e.g paddy power and bet365.
All the gambling sites are expected to face major challenges if the profit margins continue to get small and small. On the board bet fair price model has led to realize a very low profits in sports. The site has been accused on poor online performance. The shares of the site have significantly reduced in value. This has caused worry among the business partners of the company about where the business is heading to.
Ladbrokes have failed to develop the digital division in order to attract the increasing number of people betting through computers, mobile and tablets. This has caused the site to raise little amount of profit.
Outdated websites include the Fixed Old Betting Terminals. Some of the bookmarkers have been left behind because they still deploy the old version of betting. Now all the companies pay a lot of money to make their own internet sites.
It is not logic for some of the bookmakers to advertise to the gamblers on twitter that a price which is bigger is present in their market to the people who are rarely on their laptops.
These firms have seemed to shy off do something in order to fight against the offers and free bets given away by competitors which seem to be more aggressive.
Taxing Times Ahead
The government can finally opt either to charge a super tax on the excess profits realized from Fixed Odds Betting Terminals or set the limitation on the maximum amount of money gambled or maximum amount possible to be won when gambled. If this is going to happen then it means that there is going to be a trouble to big gambling companies.
Competition from other rivals is nowadays a big challenge to big bookmarkers. There has been an increase of competition in gambling industry.
A change in laws which can be address the issue of the Fixed Odds Betting Terminals cannot lead to collapse of all gambling shops but it is known that there are some of major changes which are on the way. These changes should be dealt with care by the gambling companies in order to compete and thus escape the fall out hence the best gambling sites which have aggressiveness are the ones to compete successfully and cope with such changes.
Those companies that have adopted the internet are the ones that will find it easier to cope with the changes and thus stand a good chance to thrive. The companies which are still using the old version of betting will find it hard to cope with the stiff competition and thus it is a challenge to such gambling sites.