Bwin and Party Poker in Merger Talks - 12-15-09

December 15 - Major speculation involving two big names in the online poker industry will require both parties to state their intentions to the UK Takeover Panel, it was revealed this week.

Rumours have been flying that bwin and Party Gaming, which runs the popular online poker brand, Party Poker, are holding official merger talks.

The result of such a merger could result in a gambling entity that is worth £2 billion or more.

Party Gaming has made no secret of the fact that it is seeking to expand vigorously into the global market and wants to become a leader through its casino, sports betting and poker brands.

The Gibraltar based group has experienced this kind of industry monopolization before when it operated in the United States before the Unlawful Internet Gambling Enforcement Act (UIGEA) came into effect in 2006.

Although US poker and casino players made up 90% of Party Casino and Party Poker's customer base, the company was forced to leave the US market and build itself up again in other markets.

In April this year, Party Gaming settled with the US Department of Justice which closed the book on all charges or chances of persecution, for the hefty settlement fee of $105 million spread over three to five years.

Party Gaming is now free to pursue merger opportunities that present themselves to the group, and it seems that a merger with bwin is definitely on the cards.

The Sunday Times reported that that Party Gaming and bwin Interactive Gaming are currently holding intermittent merger talks, although they are at an early stage and may not lead to an agreement.

Neither bwin or Party Gaming chose to comment on the speculations.