Mega Mergers Something to Watch When Investing in Online Gambling

Published Monday, November 08, 2010 -

In the online gambling industry the concept of bigger is better seems to be the normal way of thinking. News about the world of online gambling does suggest that his is indeed true. Mergers and acquisitions of web sites has become a common practice as the successful web sites are subject possible buy outs by the mega industry leaders. Witness the large aggressive companies such as Bwin and Party Gaming that have made it a priority to get the biggest possible share of the online gambling market. By merging these companies are following a path that only a few start up firms can compete with effectively.

Speculation about the firms that will consolidate or merge next is high on the agenda of prospective investors. Knowing which companies that will combine their assets could spell major profit for those who get there before the other guy or for that matter before the announcements are presented.

Consumer loyalty is another aspect of the consolidation situation where certain jurisdictions are known for customer loyalty mergers may be considered ill advised and risky. France being a good example of a jurisdiction that favours it’s own field over all others. The race for dominance is heating up all over the world to provide the best deal in terms of taxes and regulatory conditions. In order to maintain a fair share of the massive online gambling market developers as well as operators search for a positive and stable places to put their effort and money.

Ladbrokes 888 and other significant firms in the industry make serious financial commitment to the ongoing process of competing for that market share. Staving off the richest and most powerful of operations can be a major drain on company resources. Strategic mergers are costly and they may not be as profitable as everyone may think when adding in the competition and jurisdictional factors. Watching today’s online gambling industry change can be as fascinating to investors as the world of gambling itself. 

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