UK listed gambling company Partygaming plans to merge with Austrian-based sportsbook Bwin to create the world’s largest listed online gambling business.
The joint venture is likely to widen its reach as it eyes acquisitions among other gambling websites including casino, poker, bingo and sportsbooks.
Partygaming is a UK-listed company but based in Gibraltar due to favourable tax legislation and the new company will be listed on the London Stock Exchange.
The new merged business will be 48.4%-owned by Partygaming and 51.6% by Bwin.
“We will be in pole position to capitalise on the wealth of opportunities that will flow from the continued evolution and expansion of the global online gaming industry,” said Bwin boss Norbert Teufelberger, who will be joint chief executive along with Partygaming’s Jim Ryan.
Mr. Ryan described the merger as a “transformational opportunity” for both companies and is likely to result in a new publicly traded name. Bwin is expected to be de-listed.
The merger is anticipated to be “significantly earnings enhancing” for both companies pre-amortization.
The potential opening of the U.S. online gaming market is providing a catalyst to companies in the sector with a diversified gaming offering according to a Daniel Stewart analyst.
On Tuesday, the financial services committee of the U.S. House of Representatives voted through a bill to overturn the Unlawful Internet Gambling Enforcement Act.
New legislation, despite not coming into effect in the short-term, would re-open the market for online operators.
On Monday Bwin stated they held discussion with potential partners to enable it to re-enter the USA market after it was forced out in 2006 following tough new gambling laws.
Also shut out of the country at the same time was PartyGaming.
Mobile phones and social media were two other opportunities the combined group would also look at exploiting, they said.
