24th
Online Casino Operators Talking About Potential Merger
- Posted in Best Casino Online / News
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It has been reported on Bloomberg news that Bwin Interactive Entertainment AG, the Austrian online bookmaker and PartyGaming Plc are talking about a possible merger and forming one huge online casino, poker and sportsbetting operator with a value of over $4 billion.
Vienna-based Bwin’s head of investor relations, Konrad Sveceny, stated that although the talks are ongoing the discussions are only at a preliminary stage and that they are presently in talks with various other competitors such as Italy’s Gioco Digitale.
In a research report in October, 2009, Ed Birkin, Barclays Capital analysts reported that Europe’s online gambling market is the largest in the world, at $8.7 billion in 2009. He added that at present Bwin has the biggest European market share among publicly listed operators with 8 percent while Party Gaming has 6.3 percent and the U.K.’s second-largest bookmaker, William Hill Plc has 4.5 percent. It is felt that consolidation between companies will in all probability take place so that companies can remain competitive, according to the report.
In the event of Party Gaming merging with Bwin it would create a single entity that would control approximately 15 percent of the European online casino market.
European online gambling firms have been endeavoring to strengthen their positions for the past few months and according to Norbert Teufelberger, Bwin Co-Chief Executive Officer, there will be a wave of mergers and acquisitions among gambling companies in Europe as more Internet betting is allowed and in anticipation of an opening of the U.S. online casino market.
