The week that was in the world of British gaming financials began with reports of PartyGaming looking to purchase Austrian Internet betting company BWIN. Sources say PartyGaming’s previous purchase of Gamebookers back in August had exceeded expectations, with the company continuing to look elsewhere for possible acquisitions (including smaller online casino/bingo operators). For their part, a BWIN spokesman would only admit that while consolidation is the buzz of the entire British gaming industry in the wake of the United States effectively banning online gaming, a sale to PartyGaming is not imminent. PartyGaming continues to trim fat within the organization, with a spokesman noting that – in India alone – they dismissed 800 of 1,750 staff in an effort to reduce its cost base. PartyGaming closed at 28.75p Friday on the London Stock Exchange, with BWIN down to 15.24 Euros on the Vienna Stock Exchange.
One of PartyGaming’s rumored targets – 888 Holdings – has lost the eye of the company, however, with reports surfacing later in the week that Ladbrokes has now entered into preliminary discussions for a £470 million takeover. Ladbrokes‘ chief executive has already had discussions with 888’s chief executive (and former Ladbrokes executive director) along with other high-ranking officials. While no decision in terms of a proposal has of yet been made, Ladbrokes has confirmed their interest. Meanwhile, 888 would only add that they are holding discussions with a number of third-parties. Ladbrokes closed up Friday at 421.25p on the LSE, while 888 Holdings was down at 122p.
Elsewhere, William Hill announced this week that chief operating officer and executive director Tom Singer has stepped down from the company’s board following a review of the outfit’s key executive roles. Singer was at the helm of William Hill for six years in total. The group closed out a strong week on the LSE by closing up 9.50p at 645p per share.
Finally, BetOnSports has sold back its Asian-facing online sportsbook Hooball to the original vendors for a reported $2.25 million. Terms of the deal also included the purchaser agreeing to cancel $5 million of outstanding payment considerations as well as a return of four million BetOnSports shares that were issued as part of the original purchase. Following the U.S. Department of Justice’s Temporary Restraining Order (TRO) in July against BetOnSports, the company had yet to even assume full control of the Hooball operation. It was originally bought by BetOnSports in May, doubling the company’s Eastern market presence. The company has said its other Asian-facing brands are continuing to trade as-per-normal.
- Rex Harris
