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Will Bet3000’s partnership with financial spreadbetting company ETX Capital become the first of many?
LeapRate Exclusive… Blurring the lines between gambling and financial trading, LeapRate has learned that Malta-based online sports betting outfit Bet3000 will be launching CFD trading, in partnership with UK spreadbetting firm ETX Capital. The new website will offer Bet3000’s sportsbook and casino client base the chance to trade financial derivatives through the use of CFDs.
ETX Capital will be providing their CFD trading platform and customer service to the new joint venture, aimed at Bet3000’s clients.
The two worlds of online gambling and online trading have traditionally been kept separate, and indeed are separately regulated, although much of the behind-the-scenes technology developed first in the online gaming world has migrated over time to online financial trading. But financial trading and non-financial online gaming companies have typically decided to keep things separate. Until now.
For example, when online gaming firm Betfair decided a few years ago to utilize its technology and unique peer-to-peer gaming method, and enter the retail forex industry, they decided to do it with an entirely separate brand, creating LMAX.
It will be very interesting to follow this experiment, and see if CFD trading does take off among Bet3000’s casino and sports betting client base. If it does, we would expect to see more such partnerships in the future — as forex and CFD brokers look to target a distinct new potential client base, and as online gaming firms look to expand the roster of products they can offer their clients.
We’d be curious to get your views — do you think it makes sense for an online gaming company to add at least some financial trading? Let us know below.