Nov. 13 (Bloomberg) -- Ladbrokes Plc, the U.K.'s largest bookmaker by market value, and Dublin-based competitor Paddy Power Plc reported declines in wagers placed at betting shops as weakening economies caused gamblers to pare spending.

The amounts staked at Ladbrokes' U.K. outlets fell in the four months through October, the Harrow, England-based company said today, without being specific. So-called gross win, or the amount lost by gamblers, was unchanged, while winnings at Irish stores open a year or more slid 11 percent. Paddy Power also said business at its betting shops dropped in the last 19 weeks.

Weakening economies in Ireland and the U.K. are affecting revenue, Paddy Power said, repeating comments made in August. Ireland became the first euro-region country to enter a recession this year, while the U.K. economy shrank in the third quarter. Both bookmakers said profit for the year will meet analysts' estimates, helped by growth in their online betting divisions.

``The retail outlook is deteriorating far faster than most analysts would have expected,'' David Jennings, an analyst at Davy Stockbrokers in Dublin who follows both companies, said by telephone. ``Most people expected this sector to start to suffer when unemployment picks up, which would suggest the outlook is particularly grim.''

Greyhound Racing

Ladbrokes said the amount staked at its U.K. shops was affected by reduced betting on greyhound races as a result of ``presentation issues'' since the bookmaker started taking live horseracing pictures from Turf TV at the start of the year.

Gross win, or the amount lost by gamblers, was ``significantly'' affected in the last two weeks by unfavorable soccer and horse racing results, the U.K. bookmaker said.

Fourteen of 16 matches in the Uefa Cup tournament went in favor of customers, who normally back favorites, Ladbrokes Chief Executive Officer Christopher Bell said. Gamblers also were successful at the Breeders Cup horse race meeting in the U.S., where European horses won five of nine events, according to the CEO. The end of October was a ``difficult two weeks,'' he said.

Winnings at the bookmaker's Irish shops were hurt by the cancellation of 29 horserace meetings in the country.

Paddy Power said the amount staked at U.K. and Irish shops open at least a year fell 9 percent in October. The bookmaker held an advantage over competitors a year ago after signing up to the Turf TV horse-racing television service before them.

Operating profit next year will be reduced by 9 million euros ($11.3 million) to 10 million euros as a result of the Irish government's decision last month to double the tax on betting to 2 percent, Paddy Power said.

The amount staked by gamblers at Paddy Power's online and telephone betting units rose 13 percent from a year earlier at constant exchange rates in the 19 weeks ended Nov. 10.

Revenue at Ladbrokes' online unit climbed 22 percent.

Paddy Power fell 80 cents, or 6.2 percent, to 12.20 euros in Dublin trading. Ladbrokes shares climbed 3.75 pence, or 2.3 percent, to 161.75 pence in London.

To contact the reporter on this story: Louisa Nesbitt in Dublin at lnesbitt@bloomberg.net.

Last Updated: November 13, 2008 13:00 EST