It is understood that Ladbrokes is in talks to acquire the online gambling company 888 Holdings, and that PartyGaming is looking for merger opportunities. Following actions in the United States to ban online betting by its citizens, the Internet gambling industry is under pressure and the way forward seems to be further consolidation. Austrian company bwin.com has been reported to be considering an offer from PartyGaming for part of its operation, but that has been denied by the company.

It is believed that the Ladbrokes Chief Executive, Chris Bell, has been in Israel to discuss a possible offer with the Shaked brothers, 888’s founders and major shareholders. Analysts suggest that a possible purchase price would be over £470 million (US$891.2 million). 888 has not confirmed it is having preliminary talks with Ladbrokes, but does admit that talks with a number of firms about potential mergers are underway. At listing in September 2005, 888 had a market capitalisation of about £590 million (US$1.1 billion) but recently its share price, like other listed online gambling operators, has fallen sharply.

Ladbrokes eGaming currently operates an online sports book and over 200 casino games in 12 languages and with 18 currencies. It has turned a 2000 operating loss of £10 million (US$18.9 million) into a £41.4 million (US$78.5 million) profit in 2005. The Group is planning to introduce a new sportsbook, multilingual and next generation poker, multi-player/P2P casino and DiTV roulette. It is also looking for further expansion in the Far East, Scandinavia, Africa and Mediterranean countries, whilst pushing for free movement of services in Europe. (E-11.06.06)

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