LADBROKES
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TABLE OF CONTENT
Executive summary ………………………………………………………3
Introduction ………………………………………………………………4
Company background …………………………………………………….5
Benefits of investing in the business ……………………………………..5
Dangers of investing in a Betting Corporation ……………………………7
Recommendations………………………………………………………….9
Conclusions…………………………………………………………………10
References…………………………………………………………………..12
Executive Summary
Gambling is often considered an activity of probability that an individual is willing to participate so as they can quickly earn an extra amount of money. Such practices are often connected to series of games that offer chances for people to make money. Betting is often practiced in areas like the casino or the sporting villas.
Similarly, the actions of betting have numerous benefits and disadvantages that are attached to it. Based on the pieces of information presented by various researchers, the effects of gambling are however addictive spending much of an individual’s time instead of paying more attention to activities that may add some value to the various kinds of jobs. On the other hand, gambling can be applied so as an individual can increase the levels of income to be used to run his/her business.
Introduction
Betting is a form of business that often entices people to participate so as they can get a quick turnover of their money. It is an activity that is often practiced in the urban centers in areas like the casino or pubs that hold the recommended type of license to carry on with the business. Statistics further states that the majority of the activities undertaken in the betting rooms are based on entertainment or sporting events that attract massive groups of people to watch the actions at the various venues. The majority of the individual that are willing to participate in such activities are confident that they are to win and generate a significant amount of profit from the games based on the type of odds attached to the match.
Games with a small odd will hardly persuade an individual to include in the betting list as it will rarely generate better yields as compared to the games with a bigger odd. For example, in a soccer match, the stronger team is often given a smaller odd since the majority of the players will consider the team to win. On the other hand, the betting company will attach a bigger odd to the underdogs since they have a lesser possibility of winning the game. It is also used as a strategy for the participant to have their concentration onto the underdogs and ignore the stronger teams. For a participant willing to earn more money will bet his money on the underdogs with high hopes of the stronger team undermining the opponents, unfortunately, the player supporting the underdogs is bowed to lose the chance as the opponent will not be confident of winning the match. However, gambling has often considered a game of luck since the player is never aware of the actual results of the game; either of the teams on the betting list can win the game hence creating a chance of losing the bet to the company’s benefit.
Company’s Background
Michael Page International is a business that often deals with the activities of betting fascinating people on using their money with a goal of attaining more as in the form of profit. The company holds its head offices in Britain based in Rayners Lane Harrow, London. Two prominent businesspeople, however, founded the company with the names Mr. Schwind and Pennington in the year 1886. The business, however, began as a commission agent for horses attaining their training at Ladbroke Hall that was situated in Worcestershire (Lambie, 2010). The name Ladbrokes was later adopted in the year 1902 when the business attained a new business partner by the name Arthur Bendir, who then persuaded the initial investors to move the company to London. Such a move was to achieve more clients preferred to be offered with horse sporting services or any recreation services related to the use of a horse. Regarding the acts of relocating the business to London, more income was generated thus the provisions of the enterprise partners suggesting the additions of another activity that could offer quick turnover to the company. Such a bold move led to the addition of the betting culture into the corporation which later enticed the clients to participate so as they can earn an extra amount of cash from their tickets. According to the current structure of management at the firm, it is currently chaired by Jim Mullen. It has revenue of 1.175 billion GBP and a net income of 41 million GBP as documented in the year 2014. Conclusively, the organization has an operating income of 139.6 million GBP as per the year 2014.
Benefits of Investing in a Betting Firm
According to the documentations of various authors, the acts of gambling will lead to a client earning a quick turnover. Once an individual develops an interest in having an investment in a gambling business, there is a likelihood that they are to attain a quick turnover from their investment. The aspect of rapid turnover is based on the level of incomes that the business is to generate the participation in the betting games. Recent publications state that the firm “Ladbrokes” is achieving positive results in the first quarter of the year 2016 (Scargill, 2016). The amount of money, however, attains such returns that an individual is willing to invest in the business
Secondly, the investor has a high chance of earning more money in the form of profits as a greater chance of winning is often based on the company and limited opportunities are destined for the player. Since betting is considered a game of probability to the participants, the firm is likely to have a greater chance of filling better returns as the determinants of the outcomes are always the third party. None of the active players have a direct impact on the acts of influencing an outcome since both sides will wait for the adjournment of the game so as to know their fate. The company often presents updates on the games that could be betted (Ladbrokes Cheltenham Tipster, 2016).
Regarding the actions of betting, it is, however, easy to use. An investor willing to have his money utilized in a betting cooperation will attain more clients since the activity is easy to use. The majority of people that love the sporting industry can easily use the betting sites and often find it as a better way to wager on sports. On the contrary, there are a couple of factors why people are nervous about the actions of online betting. Unfortunately, the facts are that the online betting techniques are easy and quick to use.
There is a range of betting opportunities once an individual is willing to invest in a gambling business. A gambling firm with an online platform for its clients offers a greater range for any wager to place any bet (Bridge, 2016). These sites will, however, provide big sports and the majority of the mainstream too. The participant will, however, have a chance of gambling on a pretty much sporting event that they could want. Nonetheless, with the influence of corporate governance, it later claims about best practices and checklists (Monks & Minow, 2011). The wagers will have a wider variety of opportunities that they could use so as they can make money. Similarly, an individual can have a chance to watch the events so as they can make a decision on the type of game that will put their money. The individual will also have an opportunity for hedging and locking in profits.
An individual participating in the betting business is likely to be offered better odds hence reasonable returns in the practice. For any serious better, they have the capabilities of telling the importance of having better odds during a game. For any individual that is placing a bet on the internet will, however, understand the need for having better odds (Haslett, 2016). An individual that will attain better odds will certainly have better returns when they win however any activity that can help make more money is often a good thing.
The flexibility of the business makes it a good venture or any individual. The acts of gambling can hardly offer a chance of making more money once there is a fixed location that permits the actions of gambling. On the contrary, the ability to make a bet from any place makes it an excellent option for any individual to invest in the gambling industry. It is, however, profitable since the participants have the capabilities of staging any bet under their convenience.
Dangers of Investing in a Betting Cooperation
The actions of participating in a betting business have valid options of the limited spread of risks. The majority of the participants in the enterprise have a tendency of placing an important amount of money on the company. In the case of any losses to be made during the gambling activity, the participants are bound to attain massive losses and with no chances of receiving the lost cash. Nonetheless, the type of damage that an individual is likely to incur may be higher than with the traditional share trading after the activity (O'Halloran, 2015). Additionally, the practice bears a similar kind of risk profile in the future trading that an individual may like to have participated/ carried out.
Regarding the issues of corporate governance, there is a need for a person to keep continuously updated with codes of governance than experiencing incidences of preoccupation (Nordberg, 2013). The methods of betting can lead to an activity of over extensions of accounts. The extensions of the statements are due to the factors of the constant multiplying effects of the betting mechanics. To any person willing to play, any fair bet can, however, result in a consequential loss instead of the major profits that they are ready to earn from the games. Similarly, the acts of betting on a broad stock market index will lead to a loss of hundreds of dollars considering a spread bet on the FTSE 100 for apparently small sums of a ten dollar per point. The various durations of an individual containing a particular account has a certain level of charges that a person should pay to the firm as a cost of maintenance. Such incidents often happen due to the differences in the financial leverage as that of the traditional sources (Harris, 2013).
According to the practices of betting in any organization, these types of companies have the capabilities of altering the change in spreads, margins and the kind of markets available in a short period. Such an action practiced by the organization will limit the number of profits that they are likely to attain after the acts of playing. Similarly, it will, however, create large amounts of losses than would otherwise have been the case after the game (Harris, 2013). Nonetheless, due to the issues of the competitive nature of the business or the financial spread trading industry, the majority of the gambling companies consistently provide a high level of service to their esteemed customers. Once the platform that an individual uses for betting is neither clear nor straightforward, it will lead to an incident of losing more money since there are no chances of making modifications or alterations during the acts of betting.
Recommendations
According to various authors, a recommendation is often interpreted as a statement of advice that can often be used to make a final decision on a particular subject matter. Based on a case study, a recommendation will always have an active structure towards any investors so as to limit incidences of continuous losses helping an individual notice the importance of making such an investment. In some cases, it is to help an investor make a comparison on what conditions that an investor should take based on the outcomes of a particular study. There is a need for the application of the Cadbury Report since it calls for the use of the independent non-executive directors (Tricker, 2012).
Regarding the practices of betting, there is a need for an investor to make a consideration of the size of the market share in comparison to the rival firms. Such a concept is to help in the acts of determining the actual profits that are likely to be earned in a particular session of business. A firm that is enjoying a small market base will hardly attain success since the majority of the clients prefer services from the rival companies.
Secondly, there is a need for the investor to make an analysis of the history of a particular business. For example, the application of corporate governance and accountability offer concerns on how a company can be run (Solomon, 2010). The considerations of a corporation’s history will help in the evaluations of the creditworthy of the organizations. An individual will have accurate information about the company’s previous performance in the industry before they make a move of investing in the business.
Communication between the clients and the company is also a vital concern for any investor willing to have his money used in a particular business. Communication is to help in the acts of evaluation and also determine the levels of consistency that a firm takes to provide responses to their clients. Similarly, there is a need for the individual to gather information on the kinds of the platform that the company has set up for communication purposes. It is, however, ideal for any investor to make a consideration of choosing a business that has an online platform that a client can quickly use in the presentations of a query or the attainment of feedback concerning various factors.
Conclusion
In conclusion, investing in a betting venture holds an enormous risk as an individual is never certain as to whether he is to attain profit in the investment or they will achieve losses in a short time. For example, the history and the credit worthy of Ladbrokes entices an individual to do business with the firm since the chances of attaining profit from the activities and services offered by the company are presenting a quick turnover to the shareholders. During the activities of betting, an individual needs to have a sharp look at the aspects of odds offered by a particular team. The team with bigger odds is likely to be the categorized as the underdogs as the favorites in the game are given small odds so as to spread the risks of the company attaining losses during the acts of gambling.
The essay has provided analysis of the benefits that an individual is likely to make in the gambling industry. The analysis is however presented based on the historical performances of a British-based company known as Ladbrokes There is also a need for a customer to have a sharp look at the terms and conditions of the game before they make an actual decision of placing a bet. Conclusively, gambling is considered a game of luck but the third party is always the decider of the outcomes as the players have no direct influence on the final results of the match.
Bibliography
Bridge, S., 2016. Ladbrokes shuns Cheltenham: Bookmaker trashes to open its shops at this week's festival as offshore betting row intensifies. This is Money, 5(2), pp.1-5.
Harris, S., 2013. 5 Challenges Facing The Big Bookmakers. Betting Expert, 3(12), pp.1-6.
Haslett, E., 2016. EU referendum Betting Odds: Ladbrokes reasons a lot of David Cameron's renegotiation skills - it's just slashed the odds of the UK staying in the EU. City A.M, 3(6), pp.1-8.
LADBROKES CHELTENHAM TIPSTER, 2016. Cheltenham Festival 2016 Tips: Ladbrokes Cheltenham tipster gives insider betting knowledge for day three. The Mirror, 4(13), pp.1-6.
Lambie, J., 2010. The story of your life: an antiquity of the Sporting Life newspaper (1859-1998). 1st ed. Leicester: Matador.
O'Halloran, B., 2015. Boylesports challenges Ladbrokes restructuring. The Irish Times, 3(12), pp.1-8.
Scargill, P., 2016. Active Coral update as Ladbrokes merger looms. Racing Post, 3(12), pp.1-3.
Monks, R.A.G. & Minow, N., 2011. Corporate governance. Fifth edition ed. Chichester: Wiley.
Nordberg, D., 2013. Corporate governance: principles and issues. 1st ed. Los Angeles: SAGE.
Solomon, J., 2010. Corporate governance and accountability. 3rd ed. Chichester: Wiley.
Tricker, R.I., 2012. Corporate governance: principles, policies, and practices. 2nd ed. Oxford: Oxford University Press.
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