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In January 2018, Ladbrokes Coral and the [[Scottish Professional Football League]] agreed an extension to the betting company's current sponsorship agreement until at least 2020. The deal will see the bookmaker remain the principle sponsor for the top four divisions of Scottish football in a deal worth up to £5 million.<ref>{{cite news|title=Ladbrokes & SPFL Agree Sponsorship Extension, Vow to Promote Responsible Gambling|url=http://www.casinoreviews.co.uk/news/sport/ladbrokes-spfl-agree-sponsorship-extension-vow-promote-responsible-gambling.html |publisher=casinoreviews.co.uk |date=24 January 2018 |accessdate=25 January 2018}}</ref>
In January 2018, Ladbrokes Coral and the [[Scottish Professional Football League]] agreed an extension to the betting company's current sponsorship agreement until at least 2020. The deal will see the bookmaker remain the principle sponsor for the top four divisions of Scottish football in a deal worth up to £5 million.<ref>{{cite news|title=Ladbrokes & SPFL Agree Sponsorship Extension, Vow to Promote Responsible Gambling|url=http://www.casinoreviews.co.uk/news/sport/ladbrokes-spfl-agree-sponsorship-extension-vow-promote-responsible-gambling.html |publisher=casinoreviews.co.uk |date=24 January 2018 |accessdate=25 January 2018}}</ref>

In March 2018, Ladbrokes completed their [[omnichannel]] integration strategy with software provider [[Playtech]] offering single account functionality for all its online, mobile and retail products in the UK.<ref>{{cite news|title=Ladbrokes Launch First Omnichannel Account with Playtech|url=http://www.casinoreviews.co.uk/news/sport/ladbrokes-launch-first-omnichannel-account-playtech.html |publisher=casinoreviews.co.uk |date=13 March 2018 |accessdate=14 March 2018}}</ref>


==Investors==
==Investors==

Revision as of 09:51, 14 March 2018

Ladbrokes Coral Group plc
Company typePublic
LSE: LCL
IndustryGambling
Founded1886
HeadquartersLondon, SW1
United Kingdom
Key people
John Kelly, Chairman
Jim Mullen, CEO
Ian Bull, CFO
Andy Hornby, COO
ProductsSports betting, financial betting, poker, casino, games, Bingo and backgammon
Revenue£1,507.9 million (2016)[1]
£121.2 million (2016)[1]
£(204.3) million (2016)[1]
Number of employees
16,685 (2016)[1]
Websitewww.ladbrokescoralplc.com
Ladbrokes, North End Road, Fulham, London

Ladbrokes Coral Group plc is a British-based betting and gambling company. It is based in London. It previously owned the Hilton hotel brand outside the United States, and was known as Hilton Group plc from 1999 to 2006. It is listed on the London Stock Exchange and is a member of the FTSE 250 Index, having been relegated from the FTSE 100 Index in June 2006.[2]

In 2016, Ladbrokes acquired its rival, Gala Coral Group, and changed its name to Ladbrokes Coral. In December 2017, GVC Holdings agreed to buy Ladbrokes Coral in a deal which could be worth up to £4bn.[3]

History

The company was founded by Messrs. Schwind and Pennington in 1886, as commission agents for horses trained at Ladbroke Hall in Warwickshire. The name Ladbrokes was adopted in 1902 when one Arthur Bendir joined the partnership and operations were moved to London.[4]

Ladbrokes' first London offices were situated in the vicinity of the Strand, later moving to Hanover Square in 1906 and, in 1913, the firm graduated to Six Old Burlington Street, Mayfair.[4] From 1913 to 1956, Ladbrokes' clientele was exclusively drawn from the ranks of the British aristocracy and upper classes, many of whom were members of the elite gentlemen's clubs in the St James's area of Central London.[4]

Unusually for the times, Ladbrokes' principal long time representative on British racecourses was a woman, Helen Vernet. Having joined the firm in 1919, she was made a partner in 1928 and remained with the firm until shortly before her death in 1956, at the age of 80.[4]

Following the end of World War II, the fortunes of Ladbrokes were in steady decline, brought about by a combination of an austere postwar economic climate, a dwindling client base, and reluctance to change the firm's specialised approach to bookmaking. As a result, in 1956, the company was acquired by Mark Stein and his nephew, Cyril Stein for a reported £100,000.[5]

In 1961, the government legalised betting shops under the Betting and Gaming Act. As managing director, Stein used profits from the traditional areas of the business to establish a chain of betting shops; he was the first to introduce fixed odds football betting. The company first diversified outside of the betting business by taking a major stake in the Dragonara Palace in Malta, a casino and hotel which opened its first phase in 1964.[6][7] In 1967, Ladbrokes was floated on the London Stock Exchange.[8][9]

From 1967 to 1973, Ladbroke's retail betting business grew from less than 50 shops to 1,135, and the company expanded its ventures to include bingo clubs, hotels under the Dragonara brand, casinos in London, holiday centres, and real estate investments.[10]

The company was rocked by scandal in 1979 with the exposure of illegal marketing schemes at its London casinos, including the bribery of a police officer to obtain information about high rollers at competing casinos.[11][12] As a result, Ladbroke was forced to close its four casinos in London, which had accounted for roughly 40 percent of the company's profits.[11][13][14]

The company acquired Texas Homecare, a chain of DIY stores, in 1986. In October 1987, it acquired Hilton International from Allegis Corporation for £645 million, gaining 91 hotels, and the rights to the Hilton brand outside of the United States.[15][16][17] In 1989, Ladbrokes also acquired Vernons Football Pools.[4]

Stein retired in January 1994, under pressure from investors because of the company's rising debts and losses.[5][14][18] Under new management, Ladbroke undertook an effort to focus on its core areas of hotels and gambling, and to divest other parts of its business.[14][19] Texas Homecare was sold to J Sainsbury plc in 1995 for £290 million.[20] Ladbroke's extensive portfolio of commercial and residential real estate, valued at £1 billion in 1993, was sold off in pieces, and by March 1997, was down to £70 million.[21]

As part of its redoubled focus on gambling, Ladbroke returned to casinos in September 1994, with a £50 million purchase of three clubs in London, which it stated was the first step in building an international casino business.[22]

In September 1998, Ladbroke purchased Coral, a chain of betting shops with 891 locations, from Bass plc for £363 million.[23] The UK Government, however, ordered the company to sell Coral after the Monopolies and Mergers Commission found that the acquisition was anti-competitive.[23] The Coral business, except for 59 shops in Ireland and Jersey, was sold in a management buyout financed by Morgan Grenfell Private Equity for £390 million in February 1999.[24][25]

In March 1999, the company acquired Stakis Hotels for £1.3 billion, gaining 53 hotels and 22 casinos.[26][27] Later that year, Ladbroke renamed itself as Hilton Group plc, to reflect its increasing focus on the hotel business, which had come to represent over 80 percent of the company's assets.[28][29][30]

In August 1999, Hilton Group decided to dispose of its gambling operations outside of Europe, due to disappointing results.[31][32] Most of the assets, including racetracks and casinos in the United States and bingo and betting businesses in South America, were sold by 2001.[33] In addition, the company sold its 27 casinos in the United Kingdom to the Gala Group in December 2000 for £236 million.[33][34]

In February 2006, the company sold its hotel operations to Hilton Hotels Corporation for £3.5 billion, and once more rebranded itself as Ladbrokes plc.[35] In March 2007, the Vernons brand was sold to Sportech.[4]

Following the introduction of the Gambling Act 2005 in the United Kingdom and the subsequent relaxation of advertising laws for gambling companies in 2007, a television campaign by Ladbrokes, that included a host of ex professional footballers, was the first to result in complaints to the Advertising Standards Authority (ASA); the ASA eventually cleared the campaign.[36] The company once again came under fire from the ASA in January 2009, due to complaints relating to an advertising campaign.[37]

A Ladbrokes branch in Worthing

Since 2007, Ladbrokes operated in Spain through the LBApuestas brand, but in April 2014, it terminated its license for LBApuestas and created a website, Sportium, in a joint venture with the Spanish gaming and leisure operator Cirsa.[38][39] The company entered the online betting market in Australia with its acquisition of Bookmaker.com.au for ₤13 million in September 2013, followed by a purchase of Betstar for ₤12 million in April 2014.[40][41]

In June 2015, Ladbrokes announced that they were in talks with the board of Gala Coral Group over a possible merger.[42] The combination of the two companies created Britain`s biggest bookmaker, with over 4,000 betting shops and 30,000 employees.[43]

In July 2016, the Competition and Markets Authority identified 642 areas where the merger would harm local competition, and said 350 to 400 shops would need to be sold off for the £2.3 billion merger to be approved.[44] The merger was completed on 2 November 2016.[45] To effect the merger, Ladbrokes acquired the Coral Group and then changed its own name from Ladbrokes plc to Ladbrokes Coral Group plc.[46]

In December 2017, GVC Holdings agreed to buy Ladbrokes Coral in a deal which could be worth up to £4 billion.[3]

In January 2018, Ladbrokes Coral and the Scottish Professional Football League agreed an extension to the betting company's current sponsorship agreement until at least 2020. The deal will see the bookmaker remain the principle sponsor for the top four divisions of Scottish football in a deal worth up to £5 million.[47]

In March 2018, Ladbrokes completed their omnichannel integration strategy with software provider Playtech offering single account functionality for all its online, mobile and retail products in the UK.[48]

Investors

From 2007 onwards, billionaire John Magnier and his business partner racing tycoon JP McManus began building a stake in Ladbrokes, estimated in 2008 to be more than 10%.[49] In February 2008, it was discovered that another associate of Magnier's, Joe Lewis, had been building a stake estimated to be approximately 7%.[49]

Notes

  1. ^ a b c d "Annual Results 2016" (PDF). Ladbrokes. Retrieved 22 April 2017.
  2. ^ "Vedanta, Lonmin, Drax all to be promoted to FTSE 100 index". Forbes.com. Archived from the original on 22 April 2015. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  3. ^ a b "Ladbrokes Coral bought by online rival GVC". BBC News. Retrieved 22 December 2017.
  4. ^ a b c d e f Ladbrokes History
  5. ^ a b "Obituary - Cyril Stein". London: Daily Telegraph. 23 February 2011.
  6. ^ Jack Lundin (20 April 1980). "Stein and the Lord Mayor". The Observer. London – via Newspapers.com.
  7. ^ Victor Keegan (10 January 1967). "Ladbrokes to seek a quotation this year". The Guardian. London – via Newspapers.com.
  8. ^ "Obituary: Cyril Stein, bookmaker and businessman". The Scotsman. 17 February 2011. Retrieved 26 December 2017.
  9. ^ "Money pours in to betting firm". The Times and Democrat. Orangeburg, South Carolina. AP. 22 September 1967 – via Newspapers.com.
  10. ^ Report and Accounts 1973 (Report). Ladbroke Group. 28 February 1974. pp. 2–3 – via Companies House.
  11. ^ a b Sarah Bridge (23 May 2004). "Hilton takes a new punt on casinos". Evening Standard. London. Retrieved 31 December 2017.
  12. ^ Roger Munting (1996). An Economic and Social History of Gambling in Britain and the USA. Manchester University Press. p. 162.
  13. ^ David Simpson (21 May 1980). "Ladbroke pulls out of casino business". The Guardian. London – via Newspapers.com.
  14. ^ a b c Ken Banta (1 November 1995). "UK: Better going at Ladbrokes?". Management Today. Retrieved 31 December 2017.
  15. ^ "Allegis completes Hilton sale". The Pantagraph. Bloomington, IL. 15 October 1987 – via Newspapers.com.
  16. ^ John Westwell (6 September 1987). "Ladbroke bets on Hilton". The Sunday Times. London – via NewsBank.
  17. ^ Clay Harris (5 September 1987). "Ladbroke acquires Hilton International for 1.07 billion dollars". Financial Times. London – via NewsBank.
  18. ^ Tom Stevenson (8 January 1994). "Stein leaves Ladbroke with a £1m pay-off". The Independent. London – via NewsBank.
  19. ^ Rufus Olins; Matthew Lynn (17 December 1995). "Ladbroke to bet on hotels and casinos". The Sunday Times. London – via NewsBank.
  20. ^ "Sainsbury's buys out Texas DIY". 25 January 1995. Retrieved 26 December 2017.
  21. ^ Clifford German (5 March 1997). "Ladbroke closure sparks bid rumours". The Independent. London – via NewsBank.
  22. ^ Roger Cowe (2 September 1994). "Ladbroke bets on return to the gaming tables". The Guardian. London – via Newspapers.com.
  23. ^ a b Francisco Guerrera (23 September 1998). "DTI bars Ladbroke from buying Coral". The Independent. London. Retrieved 26 December 2017.
  24. ^ Eibhir Mulqueen (23 December 1998). "Irish Coral shops not part of Ladbroke sell-off". Irish Times. Dublin – via NewsBank.
  25. ^ Listing particulars (Report). Ladbroke Group. 10 March 1999. p. 47 – via Companies House.
  26. ^ John Waples (7 February 1999). "Ladbroke bets on deal with Stakis". The Sunday Times. London – via NewsBank.
  27. ^ Annual Report (Report). Hilton Group. 27 June 2000. p. 20 – via Companies House.
  28. ^ Scheherazade Daneshkhu (15 May 1999). "Ladbroke sells Detroit Racecourse for £18m". Financial Times. London – via NewsBank.
  29. ^ "Soccer high-flyers on target amid rate fears". The Evening Standard. London. 17 May 1999 – via NewsBank.
  30. ^ "Ladbroke gets a new name". The Scotsman. Edinburgh. 27 March 1999 – via NewsBank.
  31. ^ John Cassy (27 August 1999). "Ladbroke bets offshore". The Guardian. London – via Newspapers.com.
  32. ^ George Raine (3 September 1999). "Golden Gate Fields up for sale". San Francisco Examiner. Retrieved 2 January 2018.
  33. ^ a b Annual Report (Report). Hilton Group. 11 May 2001. p. 20 – via Companies House.
  34. ^ Alistair Osborne (23 December 2000). "Hilton has good day of deals at the gaming table". The Telegraph. London. Retrieved 2 January 2018.
  35. ^ Jane Wardell (23 February 2006). "Hilton Group profit up in 2006; may enter U.S. online gambling market". Associated Press – via NewsBank.
  36. ^ Mark Sweney (19 December 2007). "Ladbrokes ad scores ASA victory". The Guardian. London.
  37. ^ "Ladbrokes comes underfire from TV watchdog". Archived from the original on 6 June 2010.
  38. ^ Staff, Gaming Intelligence. 14 April 2014. Ladbrokes hands back LBApuestas licence to focus on JV
  39. ^ Staff, Reuters. 2 April 2014.UK bookmaker Ladbrokes to open 70 Spanish shops
  40. ^ Nathalie Thomas (4 September 2013). "Ladbrokes plays 'catch up' in Australia with £13m deal". The Telegraph. London. Retrieved 31 December 2017.
  41. ^ "UK bookmaker Ladbrokes buys Australian online company Betstar". Reuters. 9 April 2014. Retrieved 31 December 2017.
  42. ^ "Ladbrokes in merger talks with Gala Coral Group". BBC News. 23 June 2015.
  43. ^ Ladbrokes and Gala Coral merger to create £2.3bn gambling giant The Guardian
  44. ^ Ladbrokes-Gala Coral must sell 350-400 shops to clear merger - BBC News
  45. ^ "Ladbrokes and Gala Coral Complete £2.3 Billion Merger". Poker News. 2 November 2016. Retrieved 28 November 2016.
  46. ^ "Prospectus: Information about the merger" (PDF). Ladbrokes. p. 53. Retrieved 28 November 2016.
  47. ^ "Ladbrokes & SPFL Agree Sponsorship Extension, Vow to Promote Responsible Gambling". casinoreviews.co.uk. 24 January 2018. Retrieved 25 January 2018.
  48. ^ "Ladbrokes Launch First Omnichannel Account with Playtech". casinoreviews.co.uk. 13 March 2018. Retrieved 14 March 2018.
  49. ^ a b Karl West. "Tycoon Joe Lewis secures £300m stake in Ladbrokes". This is Money.
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