PokerPages > Poker News > Poker News
Ladbrokes, MGM enter Online Poker, Gaming Merger Talks
Sat, Nov 4th, 2006 @ 12:00am
UK's Ladbrokes and USA's MGM Mirage, two of the world's largest gambling groups, have begun exploratory takeover talks with online gambling companies whose stock value plummeted with the passage by US Congress and signing into law of the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA).
Though UIEGA did not change existing laws on what online gambling is illegal, UIEGA does ban banks and financial institutions from handling transactions to online gambling sites from US residents, making it harder for players to complete transactions.
Many articles as well as UK culture secretary Tessa Jowell claim UIEGA will create 'Prohibition II', referring to how 1920's alcohol prohibition did not stop drinking and lead to many shady businesses and crime [the exact opposite of what UIGEA supporters claim they wanted when they campaigned for UIEGA].
Many bloggers predicted that live casinos would move in to takeover financially hurt online companies.
But more controversial bloggers pointed out how live casinos have been large contributors to major architects of the UIEGA. They then questioned whether passage of the UIEGA wasn't an orchestrated step along the road toward regulation of the online gambling industry and dominance by already licensed casino brands whose contibutions gave them political pull. [perhaps Lou Krieger wasn't so far off the mark asking for an Online Poker political action committee (PAC).]
MGM, the world's second-largest gambling group, is understood to have contacted a number of players in the sector, including poker market leader PartyGaming, to discuss a takeover.
PartyGaming was already rumored to be in merger talks with 888 Holdings.
Talks are in the early exploratory stages. Bankers involved with MGM stressed the US company's interest was serious. They stressed that Las Vegas-based MGM wants to buy a market leader and is considering a move on any group created by a merger of PartyGaming and 888 Holdings, which are said to be in negotiations, along with Sportingbet.
888 Holdings was forced by rumors to issue a statement to the London Stock Exchange admitting it had been "very active" and was talking to "more than one party".
London's 'The Business' published a report this week saying "that one party involved in these talks is Ladbrokes, which refused to comment except to say that it was watching the situation."
Though Ladbrokes has online poker and casino sites, their sportsbetting arm is by far their financial strength. Ladbrokes has repeatedly stated it wishes to expand into European and Asian markets.
888 Holdings has no real sports betting offering. It derived about half its revenues and profits from the U.S. before passage of UIEGA. It has been expanding into other territories, notably the Asian market.
"The truth is that everybody is talking to everybody else," said one source involved in discussions, and that "These things are at an early stage- the US situation only developed a few weeks ago."
Discuss this article in our forum
Print this articleMore Poker News Articles
PokerStars to Sponsor Irish Poker Championship
12am Wed Mar 31st, 2010
PokerStars.com, the world's largest online poker site, just announced that they will throw their substantial weight behind one of Ireland's major poker festivals, The Irish Poker Championship (IPC), as part of the new PokerStars.com UK and Ireland Poker Tour.
UIGEA Delayed 6 Months in Temporary Victory for Online Poker
12am Thu Dec 3rd, 2009
Days before the December 1 deadline for implementing the UIGEA, the U.S. government announced a six-month postponement of the poorly defined anti-gambling regulations. The U.S. Department of the Treasury and the Federal Reserve Board jointly released a statement moving the deadline for UIGEA compliance to June 1, 2010.
Fabrice Soulier Joins Everest Poker's Pro Roster
12am Thu Nov 26th, 2009
To further strengthen its support for French poker in anticipation of the opening of that market, Everest Poker has signed renowned French poker pro Fabrice Soulier as its latest ambassador.
HHPT Co-Sponsors Bayou Poker Challenge Ladies Event Dec. 20
12am Wed Nov 25th, 2009
The HighHeelsPokerTour (HHPT), the first all women's poker tour launched on the East coast, will wrap up their 2009 schedule at Harrah's New Orleans on December 20th where they will co-sponsor the Ladies Event #14 no-limit Hold'em at 12 pm.
OPPAGA Reports on Florida's Online Poker Options
12am Tue Nov 24th, 2009
Given that UIGEA permits individual states to regulate online poker, the Florida Legislature's Office of Program Policy Analysis and Government Accountability (OPPAGA) published a report this week presenting three options available to Florida State lawmakers in order to protect consumers from unlawful internet poker: regulate it, prohibit it, or carry on with the status quo pending federal legislation.
BC Poker Champion Arrested, Charged with Manslaughter
12am Tue Nov 24th, 2009
Just two days after taking down the BC Poker Championships Main Event, Sophon Sek of Cloverdale, BC, was arrested in connection with one of the most storied crimes in the Province's history.
Local Businessman Bags European Poker Tour Vilamoura Bling
12am Sun Nov 22nd, 2009
The European Poker Tour rolled into the Casino Vilamoura last week, instantly generating the richest poker prize pool in the nation of Portugal's history.
Keikoan Captures Harvey's Lake Tahoe WSOPC Championship
12am Thu Nov 19th, 2009
This week marked the finale of the biggest annual tournament series in Northern Nevada, the WSOP Circuit championship at Harvey's Lake Tahoe. While the Main Event saw only a modest turnout, it did boast of a tough final table, and a WSOP bracelet owner as the eventual champion.
WSOP Main Event Champ Joe Cada to Appear on Letterman
12am Wed Nov 18th, 2009
The poker world will receive some late night attention tonight as "The Kid" Joe Cada, the youngest champion in the four decade history of the World Series of Poker Main Event, takes a seat next to embattled talk show host David Letterman.
First Korean Champ of Asia Pacific Poker Tour Crowned in Cebu
12am Tue Nov 17th, 2009
Another stop on the Asia Pacific Poker Tour is in the books, this time it's the APPT Cebu in the Philippines, and for the very first time a Korean player has come out on top.
