Ladbrokes attempts gallop ahead of its rivals with software deal

Summary: Ladbrokes bolsters online presence with Playtech deal.

Betting giant Ladbrokes has today (March 11th) inked a deal with software firm Playtech in a move it hopes will boost its presence in the mobile and online gambling market.

Richard Glynn, Ladbrokes' chief executive, who has come under heavy criticism lately due to his firm's inability to catch up with its rivals in the online field, had talked about buying Playtech out but has instead decided to merely do business with the company.

The deal will see around 40 of Playtech's marketing staff in Israel transfer to Ladbroke Digital, where they will work on software developments and launch campaigns to encourage more people to gamble online. The campaign could also involve sending out SMS messages to new and existing customers to encourage bet-in-play activity on their handsets.

In addition to that, Playtech will produce a range of casino style games and provide back-office support to Ladbrokes.

The agreement enables Playtech to earn normal royalties on the games it provides, but it will also be paid bonuses if it manages to increase Ladbrokes' online profits.

"Ladbrokes has made significant progress over the past two years by investing in our core technology, revitalising our brand and making our customer offer more competitive," Mr Glynn stated.

He added: "The formation of a new, Ladbrokes-owned, ecommerce and digital marketing services function, in addition to an expansion of our existing product relationship, is a material development."

Recent weeks have been filled with activity for Playtech. Just last week it sold its 29 per cent stake in William Hill Online back to its parent company and prior to that it teamed up with Betfred to launch a new Live dealer solution for mobile users.

That particular contract will see the firm supplying roulette, blackjack and baccarat games to its partner which will run in real-time on Android devices.

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