GVC and 888 remain locked in battle for the takeover of Bwin.Party as the process of consolidation continues apace in the gambling sector.
The fight looked to be over after 888’s offer of almost GB£ 900 million was recommended to Bwin’s shareholders. But GVC has jettisoned its initial partner Amaya and come back with a new deal that values Bwin at just over GB£ 1 billion.
Based on gross gaming yield (the amount lost by gambling customers), Bwin.Party currently sits in 4th place, with 888 in eighth (8th) and GVC in twelfth (12th) position.
But an 888-Bwin business would leap into second (2nd) place, ahead of PokerStars, whilst a GVC-Bwin tie-up would jump ahead of William Hill into third (3rd) place.
Neither deal would threaten Bet365 in the number one position
Another major deal going through is Ladbrokes’ takeover of Coral. Ladbrokes’ digital division has really lost ground in recent years and just makes the top 10 operators at number 9. A Ladbrokes-Coral entity would have combined interactive GGY of around GB£ 520 million, still some way behind William Hill’s 2014 performance.
“The UK’s Point of Consumption Tax and the regulatory wind of change blowing through Europe are causing the industry to consolidate. Companies are hoping that they will be able to take out a swathe of operating costs by merging. As we have seen in the past, however, integration is not without problems and in the meantime Bet365 marches on. Even after a potential merger between 888 and Bwin, Bet365 will still be two-thirds larger by GGY than the new entity.”
5. Bwin and Party – a match made in heaven? (GBGC newsletter, August 2010) http://www.gbgc.com/bwin-and-party-%E2%80%93-a-match-made-in-heaven/