Exchange market needs new territories to grow, says Betdaq MD

The best way to inspire growth in the “stagnant” exchange sector is through access to more global markets, Betdaq managing director (MD) Shane McLaughlin has said.

McLaughlin told EGR Intel that one of the biggest challenges faced by Betdaq during the last five years is the limited number of territories it can operate in – the UK, Ireland and licensing jurisdictions like Malta and the Isle of Man.

“Growth comes from new territories opening up because we are seeing low single digit growth for exchanges in regulated markets,” said McLaughlin.

“We either just compete for market share in an overall stagnant market or we try to find new ways to grow the industry as a whole, and that would be through new territories in my view,” he added.

Betdaq MD Shane McLaughlin

The competition for market share in the exchange industry is fierce, with the likes of Betdaq, Smarkets and Matchbook challenging market leader Betfair in the UK.

Betdaq introduced a 2% flat-rate commission for all punters in 2018 as part of a new campaign to boost the Ladbrokes Coral-owned exchange’s profile, with commission rates the key battleground among exchange operators this year.

But McLaughlin hopes GVC’s takeover of Ladbrokes Coral will allow Betdaq to explore international markets including Portugal, Germany and the US, where GVC recently secured a £153m joint venture with casino giant MGM.

“People are obviously having a good look at the US now and asking if exchanges will have a role to play in that market,” said McLaughlin.

It was rumoured earlier this year that one exchange had applied for a licence in Nevada.