Since the online gambling ban was announced few weeks ago in USA, eGaming companies are exploring merger possibilities and the actual US legal situation may have accelerated strategies in the industry. PartyGaming’s shares have fallen by over 75% in four weeks, and 888 Holdings’ shares fell by 25%.
The Telegraph reported on Sunday that these two online gaming operators, Party Gaming and 888 Holdings, have started preliminary talks about a possible merger to create a new online giant. Party Gaming is the world’s biggest online poker group, while 888 Holding is the owner of one of the most famous and reputable online casinos, 888.com.
Mitch Garber, the chief executive of Party Gaming, is on holiday in Israel, and announced further talks within the next week.
Industry experts report that online gaming companies are now looking to acquire rivals that have a strong European or Asian presence. Party Gaming has also started a deal to buy Gamesys, a well-known and estabilished European operator, and Victor Chandler, an online bookmaker with a big player base in Asia and Europe as well.
SportsInteraction announced that its Online Casino, poker room and sports-betting platform has switched from the Playtech software platform to that developed by Microgaming.
The decision was taken after Playtech’s decision not to accept US players anymore, and follows other similar changes of software providers decided by several other online gambling operators (read Betsafe choose Cryptologic)
SportsInteraction players in the United States will not be able to make any further deposits using the Playtech platform, but all accounts have been migrated to the new system, and they can continue to use the same account information and passwords.
Players who have already been registered at SportsInteraction group will have their account and password information working with the new software. The group is already hosting the new Microgaming software and US players can already open new accounts.
Ladbrokes, one of the most important companies among the online gambling industry, has criticised the US Unlawful Internet Gambling Enforcement Act (UIGEA), saying that any kind of prohibition isn’t the right approach and the UK government is right to regulate the online gaming industry instead of applying a ban.
On October 31 will have place the Gambling Summit at Ascot Racecourse (UK), and politicians coming from over 30 countries will debate about regulation of the online gambling industry.
Ladbrokes said they support the approach taken by the UK government. Spokesperson Ciaran O’Brien said:”The attempt to prohibit online gambling in the United States it’s something that is going to fail. Over 20 million people play online poker in the United States and they will continue to play and there are sites willing to accept them. Unfortunately many of these sites will not adhere to standards of social responsibility or player protection”.
O’Brien said also that gambling was a huge industry in the United States and added: “The UK Government is taking the right approach enforcing high standards of regulation. This will ensure that online gambling is kept free from crime, is fair to the consumer and protects the vulnerable and under-aged”.
