888 Holdings and Party Gaming, two of the biggest online casino and online poker operators are reported to have discussed a possible merger between them. The merger, if implemented, would create a $3 billion company, the biggest online gambling company in the world.
This recent merger attempt comes after sales of both companies were seriously hurt following the recent law in the U.S. which virtually bans online gambling for U.S. residents. The fall in the companies' shares and profits came after both Party Gaming and 888 said that they will not provide online gambling services to America.
During the last month, since the new U.S. law, Party Gaming's shares fell 70 percent to 30p while 888 dropped 24 percent and now stands at 108p per share.
Executives from both companies have discussed combining their pool of online players in recent weeks and will most likely continue with further talks of cooperation in the weeks to come.
The merger is one of several plans of online gambling companies that are trying to consolidate in order to remain afloat in the industry's current hard times. SportingBet, who's former chairman Peter Dicks was arrested in the U.S. even before the law passed, the Australian Bwin and Excapsa have all been exploring such options.
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