Ladbrokes, Neds set to merge under GVC Holdings

In a surprise announcement on Thursday, Australian corporate bookmaker Ladbrokes have released news that they have completed the deal to acquire Neds. 

International gambling group, GVC Holdings, who acquired Ladbrokes earlier in the year have continued their Australian betting takeover by completing the purchase of relatively new online wagering site, Neds. 

Neds was founded in 2017 by former Ladbrokes CEO Dean Shannon, and while Ladbrokes current CEO Jason Scott will lead the newly merged business, Shannon will stay on in a consultant role. 

"I am thrilled to lead the Ladbrokes and Neds businesses. The transaction proves beyond all doubt that GVC is here to stay in the Australian market," Scott said.

GVC Holdings, the London listed parent company of Ladbrokes, coughed up around $95 million for the acquisition of Neds in a bid to continue their footprint into the Australian gambling market. 

“Australia is a core market,” said GVG chief executive Kenneth Alexander, “and today’s acquisition further strengthens our position.”

The GVC Holdings group seemed undeterred by the troubles that Neds faced in its short existence after the wagering site was embroiled in controversy due to illegally offering inducements for people to gamble and facing court hearings. 

The merge is the third to happen amongst major Australian bookmakers in 2018 which is believed to be linked to the upcoming ‘point of consumption’ tax laws set to be put in place by the Australian Government. The new levy will, for the first time, tax digital gambling losses based on where the gambler is located rather than where the bookmaker holds its operating license.

It’s unclear when the changes from the merger will come into effect for Australian punters, but given the smoothness of the recent merger between CrownBet and William Hill Australia, it’s unlikely to affect customers of either brand in any major way.