More Internet Gambling Companies Encouraged to Seek US Regulatory Approval
August 25, 2010 (CAP News Wire) – As PartyGaming and bwin await regulatory (and shareholder) approval for the planned merger that would put them on top of the online gambling world in terms of size, speculation is flying about the merger prospects of other major online gambling brands, as well.
Most of this talk focuses on what Internet gambling brands need to do to become viable for business in the U.S. market — anticipated to be opened sooner rather than later, perhaps a bit optimistically.
“Online gambling firms Sportingbet and 888 must strike deals to protect themselves from prosecution in the United States if they are to emerge as credible takeover candidates as the industry consolidates,” reports Reuters.
“The two companies had been seen as likely targets in the wake of the industry-transforming merger between PartyGaming and Austria’s bwin, which piled pressure on rivals and traditional bookmakers to keep pace.”
“But predators won’t make a move for either until they know what liabilities the companies could face as a result of their past activities in the United States before the industry was effectively outlawed in 2006. Talks between PartyGaming and bwin only began after Party had agreed a USD 105 million settlement.”
“The DoJ/U.S. issue needs to be resolved prior to anything happening,” Reuters reports “a source close to one of the companies” saying.