Matchbook’s takeover of rival Betdaq is set to reshape a shrinking corner of the UK betting market, with prediction markets looming over the deal.

Speaking on the iGaming Daily podcast, host Fernando Noodt is joined by SBC News Editor Ted Orme-Claye and Business Journalist Patrick Killeen to unpack what the acquisition means for exchanges in the UK.

No price tag has been disclosed, but the two platforms will be merged through cross-integration.

Killeen noted that exchanges have always been a slim slice of UK gambling, with gross gaming yield declining for roughly a decade to £92 million this year. 

The market is dominated by five players: Betdaq, Matchbook, Spreadex, Betfair Exchange and Smarkets. Killeen suggested consolidation won’t dilute competition, since exchanges still compete with traditional sportsbooks, and could give the combined business more room to make the product appealing to casual punters.

Orme-Claye expects a smooth integration. 

Exchanges are niche, rivals are few, and avid users likely hold accounts with several providers anyway. Betdaq, a Dublin-headquartered brand with more than 25 years of history, should retain its customers if product standards hold.

The bigger challenge is growth. Killeen explained that exchange users are “value hunting” rather than chasing sign-up offers, and the model demands more learning than a sportsbook. Matchbook’s CEO told him its average customer is in their 40s, so a wider liquidity pool, better marketing and a younger audience are the likeliest routes to reversal.

That is where prediction markets come in. 

Matchbook became the first British company to enter the space in December, betting that interest in peer-to-peer wagering will spill over. Both guests believe the models can coexist. Orme-Claye sees UK arrival as almost inevitable, though likely focused on financial contracts rather than sports, which he expects the Gambling Commission to treat as betting.

For now, as the pair put it, it’s a case of wait and see.

Watch the full video here.