As it was recently announced in The Racing Post, Bet Fred is going to use betting exchanges to benefit from hedging. Instead of using the traditional ways like racecourse, the company has decided to focus on the Internet, like William Hill did. Other betting operators like Ladbrokes have not decided to use betting exchanges yet.
The Betdaq exchange has become the favorite among betting operators. William Hill is one of the companies that use it to perform its hedging activities. Bet Fred stated they are willing to follow Hills example taking into account their successful results. According to them, benefits from race-course had diminished and the margins were to narrow, that is why they decided to go on the betting exchanges, like Betdaq.
On the other hand, Ladbrokes plans to keep being loyal to the bookmaking tradition and place money in the racecourse ring. Mike OKane, Trading Director for Ladbrokes, stated that they will follow closely the development of William Hills and Bet Freds experience in the betting exchange market, however, until they do not see solid results, they will not transfer their focus to the Internet.