PartyGaming and Bwin to form world's biggest online gaming group

Published on Wednesday 28 July 2010 22:24

PARTYGAMING and Austrian firm Bwin yesterday unveiled plans to merge, creating the world's biggest online gaming company.

The combined group - with pro-forma revenues of €682 million (571m) last year - will be the biggest player in poker, casino, sports betting and bingo.

The deal is expected to kick-start a wave of consolidation in the sector as the combined business looks to make acquisitions among some 2,000 gaming websites currently operating.

The new company will be 48.4 per cent owned by PartyGaming and 51.6 per cent by Bwin investors, and listed in London.

Bwin boss Norbert Teufelberger, who will be joint chief executive along with PartyGaming's Jim Ryan, said: "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."

The merger could also see PartyGaming return to the US market for the first time since 2006, when authorities passed legislation preventing the transfer of funds to gambling sites.

PartyGaming - whose origins were in card games through the Party Poker website - pulled out of the US immediately and was forced to make up for declining poker revenues by growing gaming revenues elsewhere.

Shares in PartyGaming closed up 20.4 per cent at 309.5p.