Potential Online Casino Merger to Create Billion Dollar Domain

Submitted by Beth on Fri, 2010-02-05 at 21:56

Two major online gambling companies are reportedly talking about a merger. Bwin is the largest gambling company in Europe, controlling around eight percent of the market while PartyGaming controls 6.3 percent. The joining of these two companies would mean a 15 percent advantage compared to what would be the second largest company who currently controls around one third of the industry in Europe. To put it in perspective, the merger would make the new company worth somewhere in the range of $4 billion.

Both companies are hesitant to confirm a merger and are instead saying that they are simply exploring all opportunities. Before making any type of decision, all outcomes are being considered and the ‘deal’ is only in preliminary stages. Should the two companies decide to go ahead with the merger, they would easily control the online gambling market in Europe and the potential for revenue would skyrocket.

Both Bwin and PartyGaming have their eye on the US market and are hoping to have come to a decision by the time online gambling is licensed and regulated in the US. Of course, should the UIGEA (Unlawful Internet Gaming Enforcement Act) come into effect instead, it could be a very long time before any offshore operators are able to stake a claim in the US.