- Commissioner’s statement on Ventura, Marte
- Ronnie O’Sullivan: Masters champion ‘felt so vulnerable’ in final
- Arron Fletcher Wins 2017 WSOP International Circuit Marrakech Main Event ($140,224)
- Smith challenges Warner to go big in India
- Moncada No. 1 on MLB Pipeline’s Top 10 2B Prospects list
- Braves land 2 on MLB Pipeline’s Top 10 2B Prospects list
- Kingery makes MLB Pipeline’s Top 10 2B Prospects list
- New Zealand wrap up 2-0 after Bangladesh implosion
- Mathews, Pradeep, Gunathilaka to return to Sri Lanka
- Elliott hopes for rain for Poli
Top 10 Stories of 2016, #8: Online Gaming Marketplace Consolidates
- Updated: December 25, 2016
This year’s Top Stories are brought to you by the VerStandig Law Firm, LLC. Combining a keen understanding of the gaming world and an equally keen understanding of the law, Mac VerStandig and his colleagues are devoted to fighting on behalf of the poker community and its members.
One trend throughout 2016 was the consolidation in the gaming industry. The year kicked off with the finalization of one of the mergers that made the top 10 stories of 2015.
GVC Completes Takeover of bwin.party
On Feb. 1, GVC Holdings Plc completed its takeover of the online gambling giant bwin.party digital entertainment plc, owners of the partypoker brand for an estimated £1.118 billion ($1.71 billion).
At the time, Amaya Inc., the owners of the PokerStars and Full Tilt brands, was involved with a bid as was 888 Holdings, the owners of the 888poker brand, in a completely separate bid. At the end of 2015, shareholders agreed with an overwhelming 99.1 percent of the vote to approve the GVC Holdings’ standalone bid. It appears with no reported issues through 2016 that the transaction went smooth.
Labrokes and Gala Merge
British betting and gaming companies and former rivals Ladbrokes and Gala Coral agreed on a merger valued at an estimated £2.3 billion ($3.4 billion) in the middle of 2016 to become the largest bookmaker in the United Kingdom called Ladbrokes Coral.
However, the deal was stuck in regulation for quite some time and didn’t complete until November 2016. One of the hurdles was from the Competition and Markets Authority’s (CMA) ruling that Ladbrokes and Gala Coral must sell 359 betting shops for them to authorize the merger.
Irish bookmaker Boylesports was vying for the shops, but was locked out after agreements took place with Betfred to purchase 322 shops for £55 million in cash and with Stan James to acquire 37 shops for £500,000 in cash.
Just following the completion of the merger, news circulated that GVC Holdings was discussing a £3.2 billion ($3.9 billion) reverse takeover of Ladbrokes Coral, which amounted to a 30 percent premium on the stock. While talks fell apart in the middle of December 2016, this may lead the industry to believe that further consolidation of the gaming industry is possible in 2017.
William Hill Involved in Two Failed Merger Discussions
In 2015, 888 Holdings rejected a $1.14 takeover bid from William Hill plc. The tables were turned in July 2016 when 888 Holding and Rank Group, the latter being the owners of the Grosvenor Casinos brand, presented a £3 billion takeover bid to acquire William Hill.
In August, William Hill’s board unanimously rejected the offer from 888 Holdings and Rank Group, calling it “highly opportunistic.”
A month later, William Hill was in the news again with a possible “all-share merger of equals” with Amaya Inc.
However, William Hill walked away after Parvus Asset Management, the leading shareholder of William Hill stock with a 14.3 percent stake, announced they’ll be opposing any merger, citing that Amaya’s core businesses was mature.
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