Matchbook has completed its acquisition of fellow betting exchange Betdaq for an undisclosed sum.
The deal is also reported to involve Racecourse Data Technologies (RDT), which provides hardware, betting software and technical support to on-course bookmakers, and enables them to hedge positions through Betdaq, according to the Racing Post.
Matchbook said Betdaq would remain open for trading until October 21 to allow an orderly transition. Customer accounts will remain open for withdrawals until November 4.
Founded by financier and businessman Dermot Desmond in 2000, Betdaq was among the earliest betting exchanges. Desmond sold the business to Ladbrokes for €30 million (US$34 million) in 2013, then repurchased it from Ladbrokes owner Entain eight years later.
Matchbook was established in 2004. Its other ventures include easyBet, developed with Sir Stelios Haji-Ioannou’s conglomerate easyGroup, and ADI PredictStreet, a prediction market platform.
Matchbook Chief Executive Ronan McDonagh said the two exchanges were built on the principle that bettors benefit from market-driven prices rather than bookmaker margins.
“A quarter of a century on, that idea is winning: exchanges and prediction markets are bringing peer-to-peer pricing to new audiences around the world, and this acquisition deepens the pool at the heart of everything we build,” he said.
McDonagh said the company’s priority was to ensure a smooth transition for Betdaq customers, adding that combining the exchanges was expected to offer better prices and deeper liquidity than either platform could provide independently.
“Everything we are doing – this deal included – is about making the exchange first choice,” the executive added.
Addressing on-course bookmakers in a message published on the United Council of Racecourse Bookmakers’ website, McDonagh said the acquisition was expected to improve liquidity and pricing in the on-course betting market. He acknowledged concerns among on-course bookmakers about potential disruption to their businesses and their ability to trade and hedge positions during the transition.
“We are committed to assisting you in a fast and seamless transition to the Matchbook exchange with minimum intrusion and a personal service for those that wish to join us,” McDonagh said.