Two Major World Class Gambling Organizations Are Looking To Buy Up Crippled Internet Giants

According to latest reports in The Business, two of the world’s leading gambling groups, Britain’s Ladbrokes and the United States’ MGM Mirage and, have begun tentative takeover discussions with their erstwhile internet rivals that have been deeply damaged by the current US Congress legislation that is directed toward placing a ban on online gambling.

MGM is considered to be second-largest gambling group in the world today. It is reported that they are making contact with several other leading gambling groups, one of which is said to be the leading poker site owner, PartyGaming, in order to discuss a possible takeover.

The talks are still at a very early phase but financial backers that are currently connected with MGM have said that the company is serious about this. Bankers associated with MGM which is located in Las Vegas, have pointed out that the company wants to purchase a market leader and that it is seriously interested in any group that might result from a merger of 888 Holdings and PartyGaming, which is reported as being in process, as well as with Sportingbet.

The large number of rumors abounding in the media put pressure on 888 to show its hand by making a statement to the London Stock Exchange in which it admitted that it was actively discussing a possible merger with several parties.

According to The Business publication, one of the parties that has been included in these talks is Ladbrokes. Ladbrokes deferred comment saying that it was an observer of what is transpiring. Although Ladbrokes also has a successful poker website along with an online casino its main attraction is its sports betting unit. It has also made it clear that it plans to widen its operations in Europe and in the Asian market.

888, on the other hand, is a brand that closely fits the Asian market, offering nothing in the area of sports betting. About half of its revenues and profits have been acquired from other developing territories.

888 released a report regarding its financial situation as of September. This came out before the announcement of the new anti-gambling United States legislation. At that time the company reported net revenues from it gambling operations as having increased by 61 percent in the United Kingdom and by 16 percent in Europe. One source has said that discussions involving possible mergers and acquisitions are quite common and that this has been going on well before the United States move which occurred quite recently.

In contrast to Ladbrokes move, its two main rivals, William Hill and Gala Coral, have indicated no such interests in acquiring other online companies.

Gala Coral however, has been considering the purchase of the state owned pool betting business Tote, while the CEO of William Hill David Harding, has said that they are not interested in any other operations as regards possible mergers.

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