Belgian Regulator Objects to Ladbrokes-PMU Distribution Agreement

The Belgian Competition Authority (BCA)’s was concerned that a horse racing distribution agreement between Ladbrokes and Pari-Mutuel Urbain (PMU) could stifle competition in the country. Combining the two companies’ significant cross-border resources could severely limit smaller operators’ ability to compete, threatening to create a monopoly in the Belgian market.

Two Industry Giants Join Forces

Entain Group subsidiary Ladbrokes, a prominent player in the sports betting industry, recently expressed interest in a horse racing distribution agreement with French horse racing monopoly Pari-Mutuel Urbain (PMU). The proposed agreement aimed to provide Ladbrokes customers access to PMU’s French-based horse racing betting offerings, significantly expanding the operator’s Belgian offerings.

However, the BCA noted such an agreement would potentially violate competition laws, damaging other regulated operators in the country. Despite PMU’s classification as an ‘economic interest group,’ it owns Belgian operator Eurotiercé. Partnering with another regional powerhouse like Ladbrokes would create a daunting challenge for other operators, placing them in a disadvantaged position.

According to the regulator, restricting access to PMU’s horse racing betting offerings for other operators could result in reduced competition, less choice for consumers, and potentially higher prices. The authority’s arguments stem from its interpretation of local and EU anti-competitive laws, as a potential Ladbrokes-PMU team-up could have significant implications for Belgium’s horse racing betting industry.

An Agreement May Reshape the Belgian Market

The BCA’s objection does not entail any immediate enforcement action, as the two companies are free to share their counterarguments. However, the regulator can escalate the matter, initiating legal proceedings to determine whether the Ladbrokes-PMU agreement breaches anti-competitive laws. Maintaining fair competition in the industry is vital to safeguarding the interests of operators and consumers, justifying the BCA’s actions.

Recent controversies surrounding the two companies may also have contributed to the regulator’s hesitation. March saw Ladbrokes receive an $80K penalty in NT Australia for customer protection failings, while the operator’s recent Twitter ad featuring famous YouTube star and boxer, Jake Paul, caused significant friction with the ASA. Meanwhile, PMU got in trouble with the French regulator for insufficient 2023 AML provisions.

The BCA’s concerns regarding potential anti-competitive practices reflect its commitment to preserving a level playing field and consumer choice. As the case evolves, the regulator will closely monitor it and intervene if necessary. A Ladbrokes-PMU deal may be crucial in shaping the future landscape of horse racing betting in Belgium and establishing the boundaries of fair competition.