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Platform competition: Betfair and the UK market for sports betting

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  • Ramon Casadesus‐Masanell
  • Neil Campbell

Abstract

We examine two episodes of strategic interaction in the UK betting industry: (a) Betfair (an entrant multisided platform, or MSP) versus Flutter (also an MSP), and (b) Betfair versus traditional bookmakers. We find that although Betfair was an underfunded second mover in the betting exchange space, it was able to attract punters at a much faster rate than the better‐funded first mover, Flutter. Moreover, while Betfair and traditional bookmakers competed aggressively for market share, they also developed a highly complementary relationship that favored all parties. We discuss implications for research in the economics and management of MSPs. Specifically, we argue that the literature would benefit from work that endogenizes platform design and that considers the possible competitive and cooperative interactions between the business models of traditional incumbents and those of potential innovative MSP entrants.

Suggested Citation

  • Ramon Casadesus‐Masanell & Neil Campbell, 2019. "Platform competition: Betfair and the UK market for sports betting," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(1), pages 29-40, January.
    • Handle: RePEc:bla:jemstr:v:28:y:2019:i:1:p:29-40
    DOI: 10.1111/jems.12310
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    References listed on IDEAS

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    Cited by:

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    2. Michael Peneder & Sandra Bilek-Steindl & Susanne Bärenthaler-Sieber & Julia Bock-Schappelwein & Alexandros Charos, 2025. "Business Use of Online Platforms: Competition, Satisfaction and Willingness to Pay," WIFO Working Papers 701, WIFO.
    3. Florian Schuett & Amedeo Piolatto, 2022. "Information vs Competition: How Platform Design Affects Profits and Surplus," Working Papers 1325, Barcelona School of Economics.
    4. Federico Boffa & Amedeo Piolatto & Evila Piva & Florian Schuett, 2023. "Correction to: Industry dynamics in digital markets," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(1), pages 219-219, March.
    5. Federico Boffa & Amedeo Piolatto & Evila Piva & Florian Schuett, 2022. "Industry dynamics in digital markets," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(3), pages 401-407, September.

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