Online Internet Gambling Firms Agree To Cease Their Negotiations

Following an announcement from Ladbrokes and 888.com, the widespread speculation of merger talk can now stop since both companies have now announced that their discussions with regard to performing a ‘business’ transaction has been discarded through a mutually friendly agreement.

Ladbrokes, the well-known betting group and the online gaming firm 888, are the attention of the majority of the UK business media which is reporting that they are no longer in talks with regard to a possible deal.

The speculation that the two would be merging began as early as October of last year when the two started to have meetings. The amicable meetings and discussions were suddenly interrupted leading to their delay when the US Congress passed legislature that was approved by President Bush in the form of the Unlawful Internet Gambling Enforcement Act. The act is designed to upset online gambling financial business.

As the United States continued its pressure on Internet gambling, the International Herald Tribune reported that Ladbrokes was seeking after ways to minimize any liability in the United States, which might occur as the result of a takeover of 888. Because of the new anti-gambling legislation, 888.com withdrew from the States but had beforehand diversified its business holdings geographically and other business activities and was not now as badly affected as some of the other public online Internet holdings companies.

as the result of the introduction of the US legislation, 888 has been continuing to build its business in other markets, and was for example, recently granted an Italian online sports betting license in December and, signed an agreement with the owner of Rileys in February. Rileys consists of pool and poker clubs, including a chain of 168 snooker outlets, which will be experiencing 888 support of the Rileys website.
There was a 5.7 percent drop in value of the shares of the Gibraltar-based parent 888 Holdings PLC Monday following the company’s announcement that the talks were being cut off.

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