PartyGaming Bwin Merger Announcement Causes Industry Waves
The announcement of a long awaited deal between two online gambling giants, PartyGaming and the Austrian Bwin, was greeted with much cheer in the industry on Thursday.
The groups announced to the London Stock Exchange that they would become one, sending share prices of both companies sky rocketing. At one point, Party Gaming saw its share prices jump by 30%.
The merged entity will see Bwin own 51.64%, while PartyGaming will hang on to 48.64% - creating the biggest listed online gambling business in the process.
Analysts say that the net gaming revenue for the merged group would stand at €682 million.
"This is a transformational opportunity for both our companies to create the world's largest listed online gaming business," said the CEO of PartyGaming, Jim Ryan
"With market leading positions in poker, sports betting, casino and games (in particular bingo), the enlarged group will have a winning formula to exploit the growing online gaming market, supported by a strong balance sheet, significant cash flow and generation and a highly experienced management team."
The news of the merger comes on the same day that the US House of Representatives voted through Barney Frank's bill to overturn the Unlawful Internet Gambling Enforcement Act.
The newly merged group sees huge potential in a regulated online gambling market in the United States.
