|
|
|
|
Welcome to the News desk. |
|
|
|
Bwin in talks to acquire rival gaming group Sportingbet |
08/03/2007 |
|
|
David Teather
Thursday March 8, 2007
There
was a fresh wave of consolidation in the gaming industry yesterday as online
betting firm Sportingbet received a takeover approach from Austrian outfit Bwin
and the owner of Littlewood's Pools said it would buy its biggest rival
Vernons.
In a brief statement Bwin
said the talks with Sportingbet were at a "very preliminary stage" and "may or
may not lead to an offer". The online gaming industry is seeking to rebuild
revenues after internet betting was banned in the United States last year.
The pools business has suffered a slower and longer term decline since
the arrival of the National Lottery in 1994 and more recently the proliferation
of online gaming in Britain.
Sportech, which bought Littlewoods Pools in 2000, said it had entered
exclusive talks with Ladbrokes about the acquisition of its Vernons Pools
business. Littlewoods has around 500,000 people playing a week, the majority of
whom still buy their coupons on the doorstep from a network of collectors.
Vernons, which only operates via the internet, over the phone or by direct
debit has around 200,000 players. Sportech chief Ian Penrose said Littlewoods
Pools peaked at 8 million players and Vernons at 2 million, "at just about the
week before the National Lottery began".
The US ban hit Sportingbet
hard. In December the company recorded a charge of £252m for withdrawing
from the market, pushing it into losses of £241m in its financial first
quarter. The company's shares peaked at 451p last summer but fell
precipitously after the Washington ban. They were 17% higher yesterday, closing
at 60p and valuing the business at £222m. French authorities last week
called in executives from 20 gaming companies to discuss the legality of their
operations .
A large part of the European Union continues to protect
local state-run gambling monopolies. The industry has seen a flurry of mergers
and takeovers.
Ladbrokes is in discussions to acquire the online gaming
business 888 Holdings. Partygaming also held talks with 888 but went on to buy
Empire Online for £40m.
Littlewoods Pools was established more
than 80 years ago when the late John Moores printed off 4,000 coupons and
handed them to fans outside Old Trafford before a Manchester United match.
Sportech bought the business for £160m and has the rights to use the
Littlewoods name until 2010. The number of players had declined by 15-20% a
year, although a new management team last year got that down to less than 10%,
Mr Penrose said.
|
|
|
|
|
|