Other Online Gambling Options For Ladbrokes?
Published: Monday, October 30, 2006 Online-Casinos.com
LADBROKES CONSIDERING ONLINE GAMBLING OPTIONS
Is it bargain basement time for acquisitions?
The weekend news that online gambling giants Party Gaming and 888.com have had preliminary discussions about merging was followed this week by reports that the major UK betting group Ladbrokes might be looking to make some relatively cheap acquisitions in an industry damaged by recent U.S. legislative actions.
The Telegraph newspaper claimed that Ladbrokes is circling the troubled online gaming industry and hopes to cash in on the companies' distressed valuations. Merger and acquisition talks between internet betting firms are rife as they attempt to mitigate the loss of their US operations, damaged after legislative changes in America which wiped billions off the value of online betting shares.
Traditional casino operators and bookies are now circling the industry, the Telegraph reckons, looking to cherry pick the best assets at knockdown prices. They expect rapid growth across Europe and Asia.
A Ladbrokes spokesman confirmed: "It would be unusual if we were not to look at opportunities in the sector. We are monitoring the situation. We would always look to increase shareholder value."
One analyst, who declined to be named, said the most likely target was 888, which would add casino gaming to Ladbrokes' established online poker operation. The speculation follows reports that 888 is in merger talks with PartyGaming to create a GBP 1.6 billion group. Advisers close to the talks said that the discussions were at an early stage. Both operate out of the giant Europort building in Gibraltar, which is also headquarters to 32Red, Ladbrokes' internet gaming arm and Coral's online operation.
Analysts said it was unlikely consolidation talks were limited to just 888 and PartyGaming.
Ladbrokes is committed to online gambling and last Friday called for the Government to ensure the industry is properly regulated. Tessa Jowell, the Culture Secretary, is hosting a 32 nation international summit to agree industry standards at Ascot this week.
Analysts say traditional casino operators and bookies are keen to get their hands on online operators' technology and marketing expertise.
