Two Leaders Becoming One?

Two of our favorite operators could be joining forces next year to take the online Poker industry by storm. See what Bwin and PartyGaming have said about their supposed merger

Two of the online gambling world’s leading operators, Bwin Interactive Entertainment and PartyGaming, could be joining forces within the next year, according to recent rumors that a merger is on the table for them. The rumours first appeared in an article in The Times this week, and already it is believed that a possible merger between them could be worth £2 billion!

The idea of Bwin merging with PartyGaming was intensified following the recent settlement agreement made between PartyGaming and the US Department of Justice (DoJ). According to that agreement, PartyGaming will not be prosecuted for its actions in the US market prior to its 2006 withdraw alongside the introduction of the UIGEA. Settling the case against them cost no less than £65 million.

Yet PartyGaming has quickly recovered, and already made two acquisitions since that brutal year. One of these was that of Cashcade, owner of Foxy Bingo and worth a whopping £96 million. The other of these acquisitions was the World Poker Tour, which also cost an impressive £15.3 million.

PartyGaming has been on the scene for a while, yet its Sportsbetting ventures began only in 2006 when it purchased the world renowned Gamebookers for £91.6 million. With so much already on the table, PartyGaming has stated that its current goal is to become a leading operator by now enriching its Poker, Bingo and more traditional casino aspects.

Similarly, Bwin too has made big strides in its online Poker endeavors. Only two years ago the company was found to be in discussion with its own British rival, Sportingbet. When September 2009 came, Bwin then purchased the Italian Poker room, Gioco Digitale, for a lump sum of €115 million.

So why the merger? Although the real reason behind this supposed merger is still unknown, the most obvious answer is the similar history that Bwin and PartyGaming share when it comes to their regulation. Whilst PartyGaming have had issues in the US, Bwin have had issues in France.

It was only last month that Bwin was awarded the eGaming Review Awards 2009 Best Operator of the Year Award. Yet with such success achieved by both ends, and of course a potential merger on the table, who knows what they could achieve together?!