Consolidation Coming to Online Gambling

Consolidation was the hot topic of discussion recently at the big online gambling conferences with executives predicting that the media and online gambling rivals would come together and create mega companies controlling vast sections of the online gambling industry. In a recent article written by Rebekah Lillias at Betastic this prediction is definitely coming true. The article states that Gibraltar-based gambling firm PartyGaming is in merger talks with Austrian rival Bwin, which could create the biggest Internet Gambling organization in the world.

It is rumoured that the two companies have been engaging in private discussions over the past few months and are expected to be asked of to clarify their positions as the financial sector opens for business next week. PartyGaming’s investors, who have had a rough time lately are expected to welcome any positive news regarding the direction of the company. Investors saw the value of their stock disappear in 2006 when the U.S.A. introduced the Unlawful Internet Gambling Enforcement Act. At the time 90% of the players at PartyGaming sites were from North America. The company has recovered in recent years, by purchasing valuable web sites and investing wisely in new ventures.

Bwin on the other hand has continued to grow stronger in Europe and is currently valued on the Vienna stock market at 1.3 million euros (£1.2m). The company’s primary strength is SportsBetting, especially in Austria. Recently it has added poker rooms and casino action to its online offering, which has seen players number’s grow in spades. If this merger takes place it would create a company that will have a worth of approximately two billion BPS. Soon we may see more unique mergers and we will be all placing our bets on one gigantic web site that offers everything a gambler could possible desire. The creation of mega companies may not be the best thing for consumers though as competition helps provide variety and unique value.