Party Gaming - 888 merge (update)

29.10.2006

Further reports on the possible merger of Party Gaming and 888.com were being carried by most UK newspapers today (Sunday) including the Telegraph.

The newspaper revealed that executives across the online gambling sector have been looking at a range of measures to shore up their finances and find a new pool of players to replace those lost. Half of 888 (Casino on Net) Holdings' revenue came from America, the newspaper reported, while Party-Gaming relied on the US for 75 percent of its revenue.

Mitch Garber, the chief executive of PartyGaming (Party Poker, PartyCasino), is on holiday in Israel, but further talks are expected when he returns in a week's time.

The Telegraph claims that the development is something that "most gaming companies are looking at right now." According to an unnamed industry executive. "It seems all gaming companies are talking to each other about all sorts of possibilities."

It is believed that PartyGaming would benefit most from a tie-up with 888, as the latter's casino websites are seen as more resilient and its poker sites are less dependent on large numbers of players, according to analysts.

Since the ban on American online gaming was announced a month ago, PartyGaming's shares have fallen by over 70 percent, while shares in 888 Holdings fell by 24 percent.