Australian bookmaker Betstar has been purchased by betting giant Ladbrokes, as an attempt from Ladbrokes to gain bigger market shares in the lucrative Australian betting market which they entered in August of 2013. The deal is said to be worth around AUD$ 20-25 million for the Alan Eskander and his father Michael Eskander, who owns respectively 75% and 25% of the company.
Betstar was founded in 2007 and was featured on the BRW fast 100 list in 2009, having massive revenues of AUD$ 9,82 million. The revenues has since then increased significantly and Betstar was a very popular choice among Australian punters. Wagering turnover wise, Betstar lies around the AUD$400 million mark, which puts them in the same category as Bookmaker.com.au, which Ladbrokes also purchased.
Ladbrokes will now have around 5% of the online wagering market in the country and have good possibilities to try and increase those numbers. The latest financial results from Ladbrokes in Australia shows that the company had AUD$7.2 million in revenues, but had a operational loss of around AUD$5.9 million.
Ladbrokes have shopped cleverly compared to other bookies however, saving them a lot of money entering the market. William Hill spend AUD$700 million to enter the market and buying three existing brands, while Paddy Power spend AUD$338 million buying Mr Tripp's and Sportsbet.