Ladbrokes pulls plug on Denmark operation
Operator withdraws from licensed market citing unsatisfactory levels of profit
Ladbrokes has withdrawn from the regulated Danish market with immediate effect citing “unsatisfactory” levels of profit, eGaming Review has learned.
The operator, which recently placed its international management team at risk of redundancy, said it would now re-focus its resources on other territories.
Ladbrokes said the decision was due to the market having failed to live up to early expectations and subsequently delivered unsatisfactory levels of profit since its regulated launch in 2012.
“Our renewed focus is very clearly on investing in those territories which show evidence of or the potential for significant growth,” Andrew Bagguley, Ladbrokes digital MD, said.
“We will reallocate resources towards growing our [digital] operations and infrastructure in other priority territories to grow our recreational customer base and deliver market-leading products and services there,” he added.
The firm said the Danish operation had been managed by the outgoing international division and while a small number of addition staff may be affected, it was likely they would be reallocated roles.
Customers and affiliates have been notified of the decision with the former given until the end of July to withdraw any outstanding balances on their account.
Last year eGR reported that a number of Denmark-facing operators were considering their future in the market, primarily due to a stubborn black market and the strong position held by former monopoly Danske Spil.
Ladbrokes is currently in discussions with Gala Coral over a potential merger deal.