Online Poker And Casino Giant Buys Sportsbook

Wednesday August 09, 2006

Online poker and online casino giant Party Gaming has made its anticipated move into the sports betting market through the acquisition of Gamebookers sportsbook for Euro102 million in cash. This is pretty small fry for Party Gaming, but is aimed at diversifying their product range...

With its stock market value currently at aournd ￡4.4 billion, the deal seems insignificant, but could indicate the start of Party Gaming's anticipated product diversification. It also make sense for the company, while many uncertainties over the US market remain. Party Gaming is still very reliant on its US revenues.

The announcement however comes at a rather bleak time, after the areas of BetonSports CEO David Carruthers, who has since been sacked, in the US.

Gamebookers currently does not take bets from players based in the US, where PartyGaming generates over 75% of its revenues.

Gamebookers has been taking bets since 1999 and has over 250,000 registered customers from 140 different countries. Over 53,000 of these are active players, and bet on a wide range of sports.

Party Gaming will obviously look to exploit cross selling opportunities between its existing poker and casino base and the new sports customers which the deal will give them access to.

Gamebookers took bets worth Euro 179.4 million during 2005 and made a Net Profit of ￡4.6 million.