Party Poker Contemplates Sports Betting

According to the Sunday Times, the UK-stock market quoted FTSE 100 company, Party Gaming plc is in discussions to buy online sports betting company, Gamebookers for something in the region of £50m, a relative drop in the ocean for the poker company.

Only last week, Party Gaming plc raised a $500m (£270m) debt facility to help it finance a series of acquisitions with sports betting rumoured to be high on the shopping list. If the Gamebookers deal goes ahead, this would be the first acquisition Party has made since its flotation in 2005. Since then, a number of the founding shareholders have sold shares albeit only a relatively small proportion of the shareholdings despite the gargantuan sums involved per person.

Gamebookers was founded in 1998 and is currently owned by Trident Gaming (who are based in the Isle of Man). Selling Gamebookers would represent a quick turn for Trident, themselves having only acquired it in 2005. Gamebookers owns a UK bookmakers' permit but is licensed in Antigua while Party Gaming is regulated by Gibraltar.

The Sunday Times also states that the online poker and casino business of Swedish company Nordicbet.com worth a similar amount of £50m may also be open to offers after apparently hiring advisers to "explore strategic options". Party Gaming plc or a similar predator such as fellow UK quoted company, 888 Holdings plc, could be attracted to such a purchase.

Buying a sports betting operation is the next step in Party's small but steady diversification from solely being an online poker group. Recent developments have included Blackjack, bingo and backgammon. The major issue is the uncertain political and legal climate in the USA which is home to the majority of Party's customers. Seemingly not a day goes by in the USA without one politician or commentator speculating on the legalities of online wagering and gaming in the States but whether the political will exists to deny the huge number of USA citizens their daily poker fix remains an intriguing question.

Whatever the socio-political outlook Stateside, Sportsbetting PokerNews is certain that the anticipated and inevitable consolidation of the online poker industry is slowly but surely gathering pace elsewhere.

Ed note: A $525 casino bonus is available when you open an account at Mansion Sportsbook

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