24th Aug 2006 07:01
Ladbrokes PLC24 August 2006 24 August 2006 LADBROKES SIGNS JOINT VENTURE IN ITALY LADBROKES TO INVEST AROUND €100 MILLION TO DEVELOP ITALIAN BUSINESS Ladbrokes plc today announced it has taken its first steps into the Italianmarket by securing a Joint-Venture (JV) partnership with the Italian bettingcompany Pianeta Scommesse. The JV will establish Ladbrokes, already the world'sbiggest bookmaker, as an accredited provider of betting shop services in Italy. The move is the first step in a planned investment programme of around €100million in Italy by Ladbrokes to establish high street shops, non-dedicatedoutlets, Internet and telephone betting operations over the next five years. Under the terms of the deal Ladbrokes will secure a 51% stake in the new jointventure for a consideration of €1.3 million, to be paid in stages to ControllePianeta Scommesse Italia SRL. The new venture will target further opportunitiesfor betting franchises as the Italian government moves ahead with its plans toliberalise the licensing regime for betting shops. Under Italian law allbookmakers must process their bets through a provider that is connected to agovernment database, enabling the tracking of bets for tax purposes. Providersalso supply odds and liability management services to bookmakers. Currently there are around 770 licensed betting shops in Italy serving apopulation of a similar size to the UK where there are over 8,000 betting shops.Recently the government has allowed slot machines in betting shops and hasbegun to reduce the rate of tax for sports bets. Under proposals within the new'Bersani Decree' the Italian government is set to further reform the market andexpand the number of sports betting licences to 7,000 new outlets, 2,100 ofwhich will be dedicated shops. There will also be an additional 10,000 licencesfor horseracing outlets, 500 of which will be dedicated shops. Taxation ofsports bets will also be reduced from 17% to between 2 and 8%, depending onturnover. The government is expected to publish more detail on the tenderprocess for the new licences later this year. Despite the relatively small number of betting shops available the legal Italiansports betting market for 2005 was worth €1.49 billion and the horseracingbetting market €2.2 billion. The total gaming market in Italy is worth €28billion. Christopher Bell, Chief Executive Officer of Ladbrokes plc said: "With theprocess of liberalisation of the market now under way we believe Italy offerssignificant potential for the world's biggest betting brand. The proposed newlicensing framework will see an expansion of the market and the combination ofLadbrokes' expertise in marketing, technology and operations and PianetaScommesse's local knowledge will be well placed to benefit from the reforms." Roberto Righetti, Chairman Pianeta Scommesse commented: "Ladbrokes, as theworld's leading bookmaker and a global brand is the perfect partner for PianetaScommesse. With recent Government changes in taxation and proposed changes inlicensing now is a good time for a global player such as Ladbrokes to invest inthe Italian market and they represent an excellent strategic partner for PianetaScommesse. We are sure that Ladbrokes brand will appeal to Italian customers." About Ladbrokes plc Ladbrokes plc is the world's leading fixed-odds betting company and the biggestretail bookmaker in the UK, Ireland and Belgium. As well as being a leader inhigh street betting Ladbrokes operates one of the biggest telephone bettingbusinesses in the world, and world-leading interactive betting and gamingservices at www.ladbrokes.com. In July of this year Ladbrokes opened theLadbrokes Casino and Sports Bar at the Hilton London Paddington, its firstcasino. Ladbrokes plc also owns the Vernons Pools brand. About Pianeta Scommesse Pianeta Scommesse is one of Italy's most important betting service providers.Formed in 2003 to serve a small group of independent bookmakers today PianetaScommesse offers services such as connection to the Italian government agencySOGI, odds provision and technology to betting shops. Enquiries to: Ciaran O'Brien Julian ArlettHead of Public Relations Head of Investor Relations+44 (0) 7976 180 173 +44 (0) 7976 348 913 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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