Ladbrokes Enters The Exchange Market

Ladbrokes enters the exchange market
Announcement from Betdaq
It's an announcement that has been common knowledge for some time, but how will Ladbrokes involvement in the Exchange industry affect traders and the markets in general?

There is no doubt that a major liquidity boost at Betdaq will help to reduce, if not breakup Betfair's monopoly. Something that traders in particular have been screaming out for particularly since Betfair introduced their infamous Premium Charge. Having got away with the initial incarnation of the PC, they've gone on to grab more and done so with relative impunity.

Fortunately (or should that be unfortunately?) I've never been hit by the Premium Charge, though I've never agreed with it. I make a point of avoiding any kind of monopoly as much as I can, irrespective of the industry. So, in terms of trading/gambling, I pass as much of my custom to Betdaq as is possible.

While the breakup of any monopoly is a good thing, I fear that the art of trading is in for a bumpy ride and all traders will need to adapt. While a liquidity boost at Betdaq will undoubtedly be welcomed by all traders I think long term both exchanges will converge in liquidity levels, reducing at Betfair and increasing at Betdaq and becoming more 'balanced'.

Having other options can only be good for the customer, but we are likely to end up with two exchanges with liquidity levels less than the monopolistic Betfair currently have. Unless the pool of traders and punters can be increased significantly - and let's face it, that particular pond is limited in size - I don't see it happening.

It will be interesting to see how the markets on both sites change in the long term. There are certain to be new trading opportunities for those who are able to respond to those changing conditions.

1 comment:

PhilipH said...

Thanks for this news. I've used Betdaq in the past and may have another crack at it in the near future. Betfair is a tad mis-named imo. I've noted that 'Bert' Black has flogged off another tranche of shares. Hmm...