Even more online casino news about mergers

Over recent months all our reports here at onlinecasino.ie concerning the latest online casino news seem to have been about several attempts within the online gambling sector to consolidate by mergers or takeovers. This mad rush towards consolidation was caused primarily by the recent imposition of higher taxes on the online casino and sports betting sector, most notably the new rules regarding taxes due on revenues from the point of consumption. All the major online casino operators admitted that this was bound to hit their bottom line profits and have therefore been looking for ways to cut costs. The long running saga of who will eventually own Bwin Party is well documented and still to be resolved despite an offer by 888 Holdings already having been accepted, because it appears that GVC Holdings are not ready to give up. Then came the Ladbrokes/Gala Coral merger, which has certainly been friendlier but may yet run into problems from the competition regulators. The latest move however appears to have caught everybody by surprise and concerns a merger between Paddy power and Betfair. These are two of the biggest online casino and gambling companies in Europe and Paddy Power in particular is the most popular online casino operator in Ireland. It is estimated that the combined annual revenues of the new company would be in the region of £1.1 billion and news of the proposed merger sent shares in both companies almost 20% higher as investors savoured the prospect. Both Betfair and Paddy Power were also able to report substantial improvements in their latest trading statements which were issued on the same day as the proposed merger was announced. With all this consolidation activity amongst our major online casino operators the spotlight is now bound to fall on the prospects of William Hill, who since their failed bid for 888 Holdings in February appear to have been left behind.