The merger between Ladbrokes and Coral has hit another bump in the road after the British Horseracing Association filed a submission with the UK Competition & Markets Authority. In this submission, the Horseracing Authority stated that the merger between Ladbrokes and Coral could come at the price of impacting the preferences of UK consumers when it comes to horse racing as well as greyhounds.
Ladbrokes and Coral merger could hurt customers
The submission to the UK Competition & Markets Authority was submitted by the current CEO of the British Horseracing Authority (BHA), Nick Rust, who also used to be the Managing Director of Retail Operations at Ladbrokes. The main concern is the merger between Ladbrokes and Coral will lead to deterioration in the odds that customers can expect to receive.
The BHA is also about to raise concerns over the rights of the racing media, as well as the financial issues that smaller racecourses will encounter once the merger is complete, warning that it could lead to several tracks having to close down.
BHA proposes Ladbrokes and Coral pay a levy
When it comes to solutions to the issue, the BHA has suggested that perhaps Ladbrokes and Coral should be required to pay a levy. This levy will depend on the revenue that the merged companies generate through online horse racing wagers. The UK Competition and Markets Authority has been investigating the merger for some time now, with their findings expected to arrive before the end of July. However, the deadline for their report has been delayed until the 19th of August but hopefully the report will not be delayed.
The Authority has been looking at the advantages and disadvantages of the merger between the two companies, which will probably see 400 betting shops closed throughout the country. The deal between Ladbrokes and Coral was signed a year ago and is valued at £2.3 billion.
An interesting thing to keep in mind, when Mr Rust worked for Ladbrokes and Coral back in the 1990s, he also tried to merge the two companies, yet now that he is in charge of the BHA he is trying to delay the process. Although he has said he is not completely against the merger but he does have concerns.
