PartyGaming and bwin to Merge

PartyGaming and bwin, two of the industry leaders in online gambling, have agreed to terms on a merger that should make the new company the largest online gaming business in the world. The new company, which is yet to be named, will be listed on the London Stock Exchange.

On the news, both PartyGaming and bwin shares showed significant gains in trading today, each rising over 20%. Both businesses had a market value of around £1 billion, based on current share prices.

The megamerger should radically alter the face of online gambling, as both bwin and PartyGaming have significant followings, especially in Europe. Both Jim Ryan – chief executive officer of PartyGaming – and Norbert Teufelberger – co-chief executive officer of bwin – seemed positive about the merger. The two men will lead the new company as co-chief executives.

“This is a transformational opportunity for both our companies to create the world’s largest listed online gaming business,” said Ryan.

“This merger of equals makes great strategic, operational and financial sense. We will be in pole position to capitalise on the wealth of opportunities that will flow from the continued evolution and expansion of the global online gaming industry,” added Teufelberger.

The deal between PartyGaming and bwin could be just the first in a number of mergers and acquisitions in the online gambling world. These moves are likely to be triggered by the relaxation of online gambling laws in many countries, including the possibility of a regulatory framework being introduced in the United States.

PartyGaming PLC is best known for its poker room, Party Poker, which was at one time the largest poker room on the Internet. The company headquarters are located in Gibraltar.

bwin Interactive Entertainment AG is an Austrian-based online betting company, with a particular focus on sports gambling. The company features over 20 million registered customers.