|TradingSports takes a gamble on person-to-person gaming|
By Miles Nolan
Sports betting exchange TradingSports plans to float on Aim next month in a bid to increase its share of the rapidly-growing person- to-person gaming market. The concept, which effectively allows individuals the opportunity to match bets between each other without the use of a bookmaker, has attracted widespread media coverage following the success of rival exchange Betfair.
The Putney-based group has developed technology primarily aimed at internet users, but its key customers are online operators seeking a route to market. TradingSports collects a percentage of all net wins, but does not handle bets, credit control or payouts. This eliminates the need for expensive customer acquisition.
To date, deals have been signed with eight partners, including Sportingbet, TradIndex and BetonSports. When the trading system goes live it should bring access to almost 1m punters. To enable this to happen, the group is raising up to £4m to fund the roll-out and finance overseas expansion. For further details, contact Evolution Beeson Gregory on 0207488 4040.
IC View: Person-to-person wagering is a booming business and recent moves by the chancellor to charge 15 per cent tax on belting exchanges’ profits has effectively endorsed the ‘Exchange industry Profits are not expected until 2005 but, given its niche and significant barriers to entry, the £l4m valuation seems fair.