Betfair to end LCG white-label partnership
Betfair subsidiary Tradefair switches provider from London Capital Group to GFT Markets
Betfair’s financial exchange betting platform Tradefair Spreads is to terminate its relationship with long-standing white-label partner London Capital Group (LCG).
The move comes after Tradefair struck up a new deal with provider GFT Markets, with the agreement going live earlier this week.
Betfair said the switch of providers was part of a plan “to offer a more robust spread betting product” to its exchange users.
Due to a notice period, LCG products will run in tandem with GFT’s offering until December, after which point users will only be able to manage existing positions with LCG.
As with all white label partners, the underlying client is a client of LCG and LCG pays the white label partner for its client acquisition activities.
As such, in the six months to 30 June 2013, clients introduced by Tradefair contributed £0.6m to LCG’s total gross profit of £11.7m.
The news comes after Betfair announced a 13% fall in revenues in Q1 2014. Revenue for the three-months ending 31 July 2013 fell to £90.4m, down from £103.8m during the corresponding 2012 period.
Earlier this year, Betfair called off discussions with CVC Capital Partners after the private equity house made a 950p per share bid for the company.