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Showing posts from July, 2018

Tabcorp pull the pin on a lemon named SunBets

In this week's least surprising news in the wagering industry, Tabcorp have decided to stop the haemorrhaging and get out of the lemon that is SunBets. For a firm to willingly pay around £40m to get out a deal, it must have an absolute shocker.

Let's examine a few of the reasons why:

1 - joint ventures between media companies and betting firms NEVER work.

Both sides think it's a licence to print money, and the deals are usually handled by people with limited knowledge of how the other business operates. In my time at Betfair, the powers at be signed two of these deals, with MSN and Yahoo. Does anyone remember those wonderful partnerships? Those from the betting firm think every reader of the site will sign up and spend lots of money, while those from the media operation are just as gullible, thinking their readers just want to piss money away with any new brand they point them at. Unrealistic expectations puts stars in the eyes on both sides and the contract becomes a disas…