The world's largest online betting exchange will add roughly 120,000 punters to its customer base in the deal. Rank Group acquired Blue Square Bet in 2003. An increase in marketing expenditures saw the Rank Group report a loss of £4.8 million for the six-month period ending on Dec. 31, 2012.

Betfair's sports revenue has been heading in the opposite direction, rising 39% to £7.5 million in Q3 tallies announced last month. The acquisition of Blue Square Bet coincides with the London betting exchange's "strategy of growing its sportsbook and gaming operations alongside its core exchange product," a Betfair spokesman told eGR.

Betfair is in the midst of an overhaul in its operational strategy. The company has withdrawn from grey markets such as Greece and Germany in favor of expanding its focus in regulated markets.