Online Casino Operators Talking Merger
Two of the largest Internet gambling companies in the world are conducting discussions of a possible merger. Bloomberg news reported today that Bwin and PartyGaming are talking about forming one giant online casino, poker and sports betting operator worth over $4 billion.A Bwin representative released a statement admitting the talks are ongoing. But he also cautioned that the discussions are only at a preliminary stage, and added that there are other considerations being examined with other online gambling companies.
“We are in talks with a lot of competitors,” said Konrad Sveceny, the head of Bwin's investor relations. “Some of these talks are successful, such as those with Italy’s Gioco Digitale; some end without any result.”
The merger of PartyGaming with Bwin would create a single entity controlling about 15 percent of the European online casino market. Bwin is currently the largest operator at 8 percent, and PartyGaming is second with 6.3 percent.
The closest competitor of the new giant gambling company in Europe would be William Hill, at only a third the size.
European online gambling firms have been seeking consolidation for the last several months, as each tries to strengthen position in preparation for what is perceived as a likely opening of the US online casino market. Analysts see the massive revenue available to the US, along with the chance to remove the headaches caused by the UIGEA, as propelling Barney Frank's regulatory bill for Internet gambling to passage.
