Ladbrokes Expects Disappointing Results Due to Too Many Winners
Britain’s second largest bookmaker, Ladbrokes, has had to issue a shock profit warning. It says that it expects annual operating profits to fall this year following a disappointing first quarter performance in horse racing and online gaming.
The reason for this is fairly simple, there were too many winners. While odds are usual in the favour of the house, occasionally an online gamer will have a winning streak.
This is exactly what happened with many of Ladbrokes customers, there were so many winners that Ladbrokes was forced to offer an explanation to its shareholders.
In a statement the Chief Executive, Richard Glynn, said, “The trading environment and economic conditions since the start of the year have remained challenging.”
The company was also forced to payout more than expected due to a number of favourites winning at this year’s Cheltenham Festival.
Bookmakers are usually able to make back profits when a favourite fails to win, such as Tiger Woods at this year’s Masters Tournament. This means that in the long run bookmakers design odds to make sure that they still make a profit. However, clearly this doesn’t always work out showing that it really is possible to win at betting.