• Ladbrokes plans major expansion beyond Europe

By John Bowker October 13, 2005 (The Scotsman) -LADBROKES is set to unveil plans for a massive overseas expansion that will see it open betting shops outside Europe for the first time, The Scotsman has learnt. The bookies chain - part of the Hilton Group - is in talks with a string of international governments keen to follow the UK's lead on gambling regulation. The aim is to set up joint ventures with local companies in overseas markets, and open shops under the Ladbrokes brand name. Deputy chief executive Brian Wallace said: "We are talking about internationalising the Ladbrokes brand. A lot of countries would like to adopt our standard of regulation, and they are asking: How can we get help with this?" Ladbrokes will provide expertise in a range of areas, including gaming technology, the layout of the shops and managing the book - all in return for a presence on international high streets. Wallace added: "It's not like we will be spending hundreds of millions building shops, but we are looking to set them up properly, and to explain to joint venture partners how to run them. So, apart from running our business here in the UK, the Ladbrokes guys are currently flying around the world - trying to set up these joint ventures." The company is expected to unveil the strategy to the market before the end of the year, and has yet to name the governments involved in talks. However, Singapore's prime minister, Lee Hsien Loong, gave the go-ahead for the state's first casinos this year and it is understood that the Far East is Ladbrokes' primary target. The book-maker currently operates more than 2,250 betting shops in the UK and Ireland, and has a small presence in Belgium. It bought the portfolio from family firms in 1981, but has not since tried to expand its empire. It has built its brand overseas through its online offering - launched five years ago with an investment of £20 million. Ladbrokes is targeting profits from the website of £50m by 2007, while the company claims to attract punters from 160 countries. Wallace said: "The online presence is what has given us the opportunity to export Ladbrokes." On government intervention on gambling, he said: "It is harder to control the downside [of gambling] if there is no regulated environment. There will be huge amounts of illegal betting, and ultimately the government doesn't gain any tax from it. If problem gaming exists, regulation brings it to the surface." William Hill looked to challenge Ladbrokes when it bought Stanley Leisure for £504m in May, but a spokesman for the chain said yesterday it had no plans to open betting shops outside the UK, Ireland and the Channel Islands. However, he said the group was looking at online and telephone joint ventures with overseas partners - including Demco in Greece. Ladbrokes reported profits down 6 per cent to £144m in the half-year to the end of June, largely on poor horse racing results and tough comparatives with Euro 2004 - when the surprise Greek victory allowed the bookies to clean up. Hilton is hoping to win the race to run the UK's one major casino complex, which it expects to be built in Blackpool. It has recently been awarded a licence to open a casino at its Paddington hotel in London. Wallace confirmed the group was "looking" at bidding for the National Lottery when it comes up for renewal in 2009, but said it was a long way from deciding whether to go for it. Hilton shares were down 1 per cent or 3p last night at 308p.

> Read the full story here Source: Scotsman.com

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