Sportingbet PLC - possible acquisition of Centrebet International Limited

Summary

Sportingbet PLC (Sportingbet) proposed to acquire 100% of the shares of Centrebet International Limited (CIL).

Market definition

The ACCC considered the competitive effects of the proposed acquisition in the context of a national market for wagering on racing events and a national market for wagering on sporting events.

Competition analysis

The ACCC concluded that the proposed acquisition was not likely to substantially lessen competition in any relevant market for the following reasons:
- post acquisition, the merged firm would continue to be constrained by the totalisators and other corporate bookmakers;
- punters would continue to have many alternative suppliers of wagering services;
- the ability of punters to readily compare odds and minimal switching costs would constrain the merged firm from an attempted increase in margin or diminished service offering; and
- although barriers to entry appear to be high, growth in the size of wagering markets in recent years has provided incentive for new entry.