Two of the largest companies in the online gambling business, PartyGaming and Bwin Interactive Entertainment, announced plans to merge. The two companies combined brought in $893 million in 2009. They also operate in different sectors of the market, with PartyGaming focusing on poker and casino games while Bwin focuses on sports betting. With news that the US may regulate Internet gambling very soon, PartyGaming announced plans to acquire Bwin Interactive Entertainment. The merger of the two company’s creates the largest publicly traded online gambling company in the world. A company that big and with that much clout, would certainly be taken seriously should the US look to license gaming company’s.
“From an industrial point of view this is both an offensive and a defensive move” said analyst Gianmarco Bonacina. “In Europe, Bwin and PartyGaming are losing market, so the combination will protect them. In the US, the move is offensive. They want to attack the market and are in a better position if they combine”.
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