Oct. 20 (Bloomberg) -- Betfair Group Plc, the world’s biggest person-to-person online betting exchange, could increase profit by more than 50 percent with a new fixed-odds sports betting plan, according to Numis Securities.
In April, Betfair is planning to offer fixed-odds betting alongside its exchange bets to increase choice, a step that could help increase its dominance in commercial sports betting, analyst Ivor Jones said in a note to investors.
The new system could let Betfair tap into the advantages offered by fixed-odds betting, such as greater selection, earlier bets and more multiple wagers, Jones said. Betfair’s betting exchanges allow customers to bet against each other, rather than against the house, as at traditional bookmakers such as William Hill Plc and Ladbrokes Plc.
“If Betfair came to dominate fixed odds sports betting, in the same way it currently dominates overall sports betting, then it has the potential to more than double group profits,” Jones wrote, adding that the calculations are “highly speculative.’ He has a “buy” recommendation on Betfair.
In June, Betfair said it’s developing an “integrated” sports betting product that will allow it to offer more bets during games and other wagers.
Editors: Peter Branton, Chris Peterson
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