Poll results: Ladbrokes-Gala Coral merger divides opinion
Respondents to this week's poll unsure if proposed mega-merger could compete with William Hill
eGaming Review readers are divided as to whether the proposed merger between Ladbrokes and Gala Coral will create a firm able to compete with historic rival William Hill.
Last week Ladbrokes and Gala Coral hit the headlines after the pair confirmed they were in discussions over a potential combination.
The news sparked much analysis and debate regarding the wider implications of a merger, which would create a firm with online revenues of approximately £400m.
Some industry commentators predicted the merger would leave the Ladbrokes-Gala Coral combo in a strong position to mount a serious challenge to long-term rival William Hill and just over half of respondents (51%) to this week’s poll agreed with that view.
The merged operator would certainly become number one on the UK high-street, enabling Ladbrokes to leverage Coral’s successful single wallet Connect card and transfer more land-based players into the digital environment.
However, the duo would still be left to make up some ground on William Hill in the digital space, with its’s 2014 revenues more than £100m short of William Hill’s £527.4m figure.
And 49% of respondents felt that deficit was too big a bridge to gap and would leave the combined firm in shadows of William Hill’s growing online business.
All three operators are heavily focused on the UK online gambling market, where William Hill is estimated to have a market share of 15%, while a merged online business of Ladbrokes and Gala Coral would likely occupy a top three position, just ahead of Betfair and Paddy Power, with a 10% market share.