Newly launched betting exchange BetBull has blamed an immature European market for a disappointing first three months that saw it record just Euro2,300 in gross revenue.
Since its launch in September 2004 BetBull has signed up just 700 active customers and the customer accounts cash balance totals just US$37,300.
And the firm, which is co-owned by Austrian sportsbook BetandWin, said it had “drastically reduced marketing spend” as a result.
It now plans to act as a white-label provider for fixed-odds bookmakers looking to break into the P2P sector.
"Propagating the co-operating model sets us clearly apart from competitors who traditionally antagonise bookmakers, racing associations, and other sporting bodies," Günter Schmid, chief executive of BetBull, said.
BetBull had targeted sophisticated bettors in the German market, but Simon Bold, COO of BetBull, said it found reluctance for those bettors to move away from a fixed-odds model.
"A substantial segment of bettors are not ready to fully migrate to a betting exchange,” Bull said.
“Although they understand the advantages, the superior odds and the opportunity to trade, they shy away from learning to use the standard user interfaces.”
Part of the problem facing BetBull was its failure to offer horseracing markets, and Bold conceded this was a contributing factor to its poor performance to date.
BetBull now plans to add a range of horseracing markets to its site, although initially it will focus on the German market.
It is currently negotiating with leading German bookmakers with plans to relaunch as www.betbull.de later this year.
It has already signed agreements with horseracing operators International Club in Baden Baden and the Münchener Rennverein.
BetBull remains in a strong financial position thanks to the US$16.6m it raised through an Initial Public Offering on the Viennese Stock Exchange in October
source : egaming review magazine
