“consolidation inevitable” in UK betting sector

DragonBet’s Co-Founder, David Lovell, is confident that the bookmaker has crafted itself a “genuinely competitive product” to stand out in a highly competitive and challenging market.

The Wales-focused operator, which agreed a deal with the BVGroup last month to migrate onto the platform, joins several competitors on BV:360 including BetVictor, Parimatch UK, Betano UK and talkSPORT BET.

Chief Executive Officer Lovell, who runs the business alongside his brother, Managing Director James, thinks the move can give DragonBet a significant chance of growth.

“We’ve demonstrated that we can grow and compound our casino business, but achieving the same consistency in sportsbook has been more challenging,” he explains to SBC News. 

“The reality is that sports betting is an incredibly competitive market, and without a genuinely competitive product, you’re fighting with one hand tied behind your back.

“Moving to BV360 gives us access to a tier-one sportsbook platform, which we believe can make a significant difference to our ability to compete and grow that side of the business.

“There are other important benefits too. The additional tooling should allow us to take a more sophisticated approach to compliance, protecting customers and meeting our regulatory obligations without introducing unnecessary friction into their experience.

“It also means we can concentrate more of our energy on what we do best, running a bookmaking business, building the brand and finding opportunities to innovate, rather than working around limitations of technology.”

DragonBet – more than a new kid on the block

DragonBet’s rise in the last few years has been clear. The company came into being after the brothers spent years working on-course with their late father, John, for Lovell Racing. 

In 2022, they made the leap to take the business online. DragonBet is now in the top 100 bookies in the UK by size, according to the Blask Index, less than five years after its launch. 

Importantly for the brothers, a move to the BV:360 platform was only agreed when they knew that DragonBet would be able to keep its independence and identity – something Lovell describes as “absolutely fundamental”.

“My brother James and I are second-generation bookmakers. Our family has been involved in the industry since 1968, starting on racecourses, and we’re proud of that history,” he says.

“One of the things that motivates us most is the opportunity to take what our family started and build something that can endure for another generation. We also want to demonstrate that there’s still a place for genuinely independent, family-owned bookmakers in the UK market.

“That’s why the structure of the BV360 partnership was so attractive. We can benefit from the technology and infrastructure of a much larger organisation without sacrificing the independence and identity that make DragonBet what it is.

“In terms of awareness, we’ve made good progress, particularly in Wales, but we’re still a relatively young online brand and have plenty of work ahead of us.”

“We’re not trying to become another generic betting operator. We want people to recognise DragonBet as a distinctive, independent bookmaker with a genuine history behind it.”

How to thrive when others are looking to survive

While Lovell still believes there is room for independent bookmakers in the UK, it is clear to see why there has been a lack of market entrants in the past year or so. 

Tax rises may have scuppered plans for incoming challengers in the UK market, with increases in Remote Gaming Duty (21% to 40%) and General Betting Duty (15% to 25%) potentially putting operators off a UK entry. 

With both traditional sportsbooks and casino products affected by these two rises, it is easy to see why the UK may not be as attractive as it once was. Those with a retail presence will feel tax pressures soon too, with a rise in Machine Games Duty being announced in last week’s Autumn Budget. 

However, despite these challenges, and Lovell admitting that “consolidation is inevitable”, the CEO is confident that DragonBet can not only weather the storm, but come out of it in a strong position. 

“It’s incredibly tough, and I think anyone suggesting otherwise probably isn’t being entirely realistic,” he admits.

“I do worry about what that means for the diversity of the market over the longer term… but I don’t believe that means smaller bookmakers can’t succeed.

“Being independent gives us certain advantages. We can make decisions quickly, adapt to changing circumstances and take opportunities that might be more difficult for larger organisations to pursue.

“We’re also a family of bookmakers. It’s what we’ve grown up around, and there’s a genuine passion for the industry that runs through the business. We’re not underestimating the challenges ahead, and we’re certainly not pursuing expansion for its own sake.

“Our ambition is to build a successful, profitable and sustainable independent bookmaker, one that can compete with much larger businesses and continue the family bookmaking tradition for another generation.”