With the hottest topic of discussion at the more recent online gambling conferences being one of consolidation within the industry, a major merger is likely.
Gambling industry leaders are predicting that rivals from the media and the online gambling sector will come together to create vast companies that will be able to control large sections of the Internet gambling industry. There is speculation that the Gibraltar based online gambling company PartyGaming is currently engaged in talks of a merger with Austrian rivals Bwin. Such a merger would create the world’s largest Internet gambling organisation.
Rumours abound that over the last few months both companies have been engaged in a series of private discussions. They are expected to clarify their respective positions on this matter by the financial sector next week when it opens for business. Any positive news with regard to the company’s direction will be welcomed by investors in PartyGaming, who have been having a tough time lately. In fact, they watched as their stock all but vanished when the UIGEA was introduced in the United States, as around 90% of their customers came from North America. PartyGaming has since recovered by making several valuable web site purchases and making several wise investments in new ventures.
On the contrary, Bwin has been a pillar of strength in the European online gambling markets. They have only grown stronger over the past years and are currently valued at €1.3 million on Vienna’s stock market. The main strength of the company comes from SportsBetting more especially in Austria. In recent times the addition of online poker rooms as well as online casinos has seem a marked growth in player numbers.
Should this merger take place, the resulting mega company is estimated by analysts to have an approximate worth of €2 billion and will take the place as the number one online gambling company in the world.
This may be the first of many similar moves by other online gambling companies looking to expand and grow in a market place worth an unprecedented amount of money. This could result in the creation of massive gambling websites that offer every conceivable type of game and means for placing bets on everything from casino games to sports betting. This may be a novelty for players at first, but ultimately may not be best for consumers as the reduced competition may result in the erosion of the very value for money that the industry’s diversity currently provides.