Five consequences of a deal: PartyGaming-Sportingbet merger

A PARTYGAMING SPORTINGBET merger or acquisition (by Party) might sound far-fetched, but the egaming sector does have a capacity to surprise even the most seasoned observers.

Party has often claimed it wants to be a top online betting company, and acquiring or merging with Sportingbet would certainly give it scale in Europe.

Sportingbet currently has a market capitalisation of £290m, so Party would need to access the markets to carry out any buy out.

1) Buying or merging with Sportingbet is a more realistic strategy for Party to achieve its aim of being a top three sports betting operator.

2) PartyGaming’s strong poker and casino and Sportingbet’s betting and in-running markets would complement each other perfectly.

3) A tie would also enable Party to add sports to the white label-B2B strategy being aggressively pursued by chief executive Jim Ryan.

4) Sportingbet would give PartyGaming scale and a respected brand. However, the former has to settle with the US Department of Justice before it can take part in any consolidation.

5) Joining forces with Sportingbet is one option, but a merger between Party and Bwin could be another option. Or perhaps Party may surprise everyone by acquiring a lottery company.

This article first appeared in the September issue of eGaming Review.