Online bookmaker set to enter London Stock Exchange
Wednesday 15th August 2007
Online and land based bookmaker BetFred is set to capitalise on analyst’s predictions of a boom in the gambling industry by contemplating its first public offering on the stock market.
BetFred, the UK’s fourth-largest gambling chain with 670 betting shops, has instructed Rothschild bank to examine a variety of options including a £600m London initial public offering. The move comes as takeover bids are reported to be circling the profitable gambling firm.
Rothschild is also reported to have has acted in an advisory capacity to online poker company PokerStars on a potential private sale prior to it’s an initial public offering, although the deal collapsed after the introduction of the US’s introduction of the Unlawful Internet Gambling Enforcement Act (UIGEA) in October 2006.
However analysts, such as Ed Barton from industry researcher Screendigest are cautiously optimistic about the recovery of the US gaming market: “It’s not a matter of if but when. The US gambling is a huge market so many experts feel it will eventually be regulated,” he said.
Online and land based bookmaker BetFred is set to capitalise on analyst’s predictions of a boom in the gambling industry by contemplating its first public offering on the stock market.