Although both PartyGaming and Bwin are in public denial, rumour has it that these two major players in the online gambling industry are considering to join forces in order to create a multibillion-dollar gambling conglomerate.
Online Gambling Ambitions
PartyGaming has never made any efforts to disguise its global and industry-wide online gambling ambitions. It successfully operates Party Poker, Party Casino, Party Bingo, Party Gammon, and hopes to further improve and expand its online sportsbook called Party Bets.
Sportsbook and poker room operator Bwin on the other hand, has made numerous efforts to broaden its range of gambling-related services, with the $167.5 million takeover of Italian poker room Gioco Digitale as a prime example.
Against the Law
Both online gambling giants have had some inevitable struggles with government regulators. In 2006, Bwin saw company executives getting arrested for sponsoring French soccer club AS Monaco, which appeared to be in violation with the country's strict gambling monopoly.
The setback Bwin faced in France is small-talk compared to the hardship PartyGaming had to endure when the US government decided to implement the detested UIGEA measures. Aside from the $105 million settlement, this forced the company to back out from the lucrative US online poker market and hand over the victory to eternal rival PokerStars.
The Merger
LSE-listed PartyGaming has a current market value that lies around the €1.1 billion, and Bwin's total of Vienna-listed shares are valued at €1.3 billion. Although both Party and Bwin explicitly denied the merger rumours, their shares rose with 3.3% and 4.2% respectively.
