by Renee Israel
A new online betting and gambling service will be offered to the French
gambling public by the UK gaming giant, Ladbrokes, it was reported last
week.
The group has entered into a lucrative joint venture with the pay-TV
broadcaster, Canal+ which will give Ladbrokes access to a staggering 12.5
million subscribers.
Both the French broadcaster and Ladbrokes will contribute just under GBP 2
million worth of funds to the venture.
Ladbrokes' entry into the newly regulated French market has not been an easy
one, with the group stating its dissatisfaction at the tight regulations and tax
rates recently introduced by the government.
However, competition is tight and if Ladbrokes wants to stay in line with its
rivals, it has no choice but to take its products to the French public.
Ladbrokes and the Canal+ will certainly feel the stiffness of the competition
from groups such as TF1 broadcaster which holds rights to the World Cup. TF1
recently entered into a partnership deal with the French monopoly group,
Francaise des Jeux.
Another broadcasting rival, M6 also signed deals with Mangas Capital,
Betclick and Everest Poker.
Ladbrokes' new deal will limit the group in that it may not, under the terms
of the deal, operate other e-gaming businesses in France as long as it is part
of the joint venture - and for two years beyond.
Another interesting term of the deal is that Ladbrokes may be required to buy
out Canal+'s half of the venture after five years of trading.
"We currently have no presence in France," said Ladbrokes. "It is a very
competitive market but it is also a very big market. It will still be highly
regulated but it is hoped that it will be further deregulated over time."
