Merger Frenzy Among Online Casino Companies
4 Sep 2006
We are suddenly hearing of a good number of online casino companies eyeing other, smaller companies in a bid to merge or acquire them. This sudden merger frenzy has been felt in the global online casino industry and not limited to one region. The reason for this new trend, however, stems from the fact that many online casino companies are looking for alternative markets to the United States market that is viewed as unstable and subject to sudden changes.Recently, online casino giant, Party Gaming, paid the very large sum of $131-million to purchase Gamebookers, a Bulgarian-based online casino sportsbetting site that focuses on European clientele. If this merger wasn't enough for Party Gaming, just this week it purchased London-based Victor Chandler, an online casino that provided staunch competition for Party Gaming until the acquisition. Some online casino companies didn't wait for things to get so hot in the industry. Even at the end of last year, many companies were already eyeing alternative markets, as in the case of Bwin Interactive Entertainment which purchased a Swiss operated poker site, On Game, for a whopping $634-million.
Some online casino companies are heading off to the more stable European markets, while others are trying their luck in Asia, which is considered extremely promising with great potential. Online casino sites are especially keen to enter the Japanese and Chinese markets that, analysts predict, will grow at an incredible rate over the next decade.
