Merger to Create Online Gambling Giant

Looking ahead at the New Year, the online gambling industry sees a major development ahead. PartyGaming Plc and bwin Interactive Entertainment AG plan to merge in 2011 and create the world's largest publicly listed online gaming group.

"Our products and target markets complement one another perfectly, and we can continue to expand our technology lead in all key product segments: sports betting, poker, casino, bingo and games," according to Norbert Teufelberger, Co-CEO of bwin.

The Deal

bwin will hold an Extraordinary General Meeting on 28 January, 2011. If approved, the merger will then take effect late in Q1. PartyGaming and bwin will then operate under a name: bwin.party digital entertainment plc.

Current bwin shareholders will likely hold 51.7% of the shares, to PartyGaming's 48.3%.

Business Plan 2011

Aside from continuing its B2C focus, the new company will benefit from a firm capital structure and customer liquidity, believed to be critical entering a new age of consolidation in the online gaming industry and geographic diversification.

The new company will expand its B2B and B2G businesses as well.

Its headquarters will be in Gibraltar, while shares will be listed on the London Stock Exchange. Gibraltar will be raising taxes on online gambling companies this month.