Poker site to place big bet on rival
July 02, 2006
THE world’s largest internet poker company, Party
Gaming, is in talks to acquire Gamebookers, the online sports-betting
company, for about £50m.
A deal would be the first acquisition for Party Gaming since
it floated a year ago. An announcement could be made in
the next two or three weeks.
Gamebookers, founded in 1998, is currently owned by Trident
Gaming, an Isle of Man-based firm which also controls Betbug,
a person-to- person betting site. It bought Gamebookers
in July 2005.
Last week, Party Gaming raised a $500m (£270m) debt
facility to help it finance a series of acquisitions. It
is known to be eyeing a number of potential deals, of which
Gamebookers is likely to be the first.
While this debut deal is relatively small for Party Gaming,
which has a market value of £4.6 billion, it will
allow the company to diversify its business away from America,
which accounts for more than three-quarters of its turnover.
Gamebookers does not take bets from American customers.
Internet poker remains a legal grey area in the US. Conservative
politicians there are working hard to try and ban online
gaming, including poker. Only sports betting is explicitly
deemed illegal.
As well as poker, Party Gaming already offers bingo, backgammon
and casino games. Moving into sports betting is the logical
next step.
Gamebookers is licensed in Antigua, but also has a UK bookmakers’
permit. Party Gaming is regulated by Gibraltar.
• The owners of Nordicbet.com, a Swedish gambling
site that also offers poker and casino games, have hired
advisers to explore strategic options. The business, said
to be worth about £50m, could attract interest from
the likes of Party Gaming and 888 Holdings.
Read more: http://www.timesonline.co.uk/article/0,,2095-2252453,00.html
