LONDON, July 29, 2015 /PRNewswire/ --

GVC and 888 remain locked in battle for the takeover of Bwin.Party as the process of consolidation continues apace in the gambling sector.

The fight looked to be over after 888's offer of almost GB£ 900 million was recommended to Bwin's shareholders. But GVC has jettisoned its initial partner Amaya and come back with a new deal that values Bwin at just over GB£ 1 billion.

Whichever offer is ultimately accepted, the new entity will become a top three player in the interactive gambling market, according to analysis by Global Betting and Gaming Consultants (GBGC).

Based on gross gaming yield (the amount lost by gambling customers), Bwin.Party currently sits in 4^th place, with 888 in eighth (8^th) and GVC in twelfth (12^th) position.

But an 888-Bwin business would leap into second (2^nd) place, ahead of PokerStars, whilst a GVC-Bwin tie-up would jump ahead of William Hill into third (3^rd) place.

Neither deal would threaten Bet365 in the number one position.

Leading interactive gambling companies (2014, GGY GB£) 

   
          Company         GGY (GBPm)
        1 Bet365             1,284.2
        * 888-Bwin             770.0
        2 PokerStars           687.1
        * GVC-Bwin             653.6
        3 William Hill         649.3
        * Ladbrokes-Coral      523.0
        4 Bwin.Party           478.0
        5 Paddy Power          438.6
        6 Betfair              393.6
        7 Unibet               312.0
        8 888 Holdings         292.1
        9 Ladbrokes            288.3
       10 Betsson              251.6
       11 Coral                234.7
       12 Skybet               183.0
       13 GVC Holdings         175.6

Source: GBGC analysis 

The battle for Bwin is just one of several deals to have taken place in the gambling sectors in recent years as operators try to gain size and see off their rivals in increasingly competitive, high-tax markets.

Another major deal going through is Ladbrokes' takeover of Coral. Ladbrokes' digital division has really lost ground in recent years and just makes the top 10 operators at number 9. A Ladbrokes-Coral entity would have combined interactive GGY of around GB£ 520 million, still some way behind William Hill's 2014 performance.

Global Betting and Gaming Consultants' CEO Warwick Bartlett commented:

"The UK's Point of Consumption Tax and the regulatory wind of change blowing through Europe are causing the industry to consolidate.  Companies are hoping that they will be able to take out a swathe of operating costs by merging. As we have seen in the past, however, integration is not without problems and in the meantime Bet365 marches on.  Even after a potential merger between 888 and Bwin, Bet 365 will still be two-thirds larger by GGY than the new entity."  

Notes 

1. The table covers gross gaming yield (GGY) for non-monopoly operators
2. The data for PokerStars relates to the year to 31 December 2013
3. The positions for the merged companies assumes a combination of the 2014 GGY of two separate companies
4. E-gaming migration: from frying pan to fire (GBGC newsletter, September 2013) http://www.gbgc.com/e-gaming-migration-from-frying-pan-to-fire/
5. Bwin and Party - a match made in heaven? (GBGC newsletter August 2010) http://www.gbgc.com/bwin-and-party-%E2%80%93-a-match-made-in-heaven/

Contact details
Mr Warwick Bartlett
Chief executive, GBGC (Global Betting and Gaming Consultancy)
Warwick@gbgc.com
+44(0)1624-827138
+44(0)7624-483-921

SOURCE Global Betting and Gaming Consultants