Bookmaker News – Ladbrokes And Bwin Subject of City Rumours

February 15th, 2010 / paul

Back in 2006, there were strong rumours that Ladbrokes were about to buy out 888 Holdings. Then chief executive Chris Bell was even reported to have flown out to Israel to thrash out a deal with 888‘s founders Avi and Aharon Shaked. Uncertainty in the market and a steep asking price were rumoured to be the reason that nothing materialised on that occasion but now, it appears, a tie-up is very much back on the cards. 888 Holdings chief executive Gigi Levy, a former high-flier with software and systems providers Amdocs, is keen to expand his company’s portfolio and there is speculation that as much as £60million could be made available if a mutually-profitable deal can be thrashed out. Ladbrokes, of course, recently became the latest British bookmaker to move their sportsbook operation to Gibraltar in a bid to reduce the impact of the horse racing levy. But shareholders still had to stump up an estimated £275million last year in a new rights issue to help shrink the company’s considerable debts and a merger is viewed by some of the country’s leading business analysts as the only way Ladbrokes can contemplate long-term stability without significantly reducing their overheads. Another possible deal on the horizon in 2010 is a merger between PartyGaming and Bwin. Again, this is a rumour that’s being revived from 2006 but there is a deal of substance to this one. PartyGaming are big players in the world of online poker and casino and the purchase of bingo specialists Cashcade means they can now move forward in that area too. But the remain relative small fry in the field of sports betting in comparison to some. A share in Austria-based Bwin would give them a considerably larger stake in the sports betting market and could be the fore-runner of more mergers this year as online layers attempt to stabilise the market. Bwin, incidentally, recently bought out Italian gaming site Gioco Digitale for around £80million and are others reportedly interested in acquiring a share in 888 Holdings with the possibility of a bid for Sportingbet also on the cards.