The consolidation of poker operators continue with the merger of Paddy Power and Betfair (IPoker), two British gambling industry giants. The deal is not done yet, but according to SBC report, the two companies have agreed to merger in principle: “The firms said that the possible merger would create one of the world’s largest public online betting and gaming companies by revenue with enlarged scale, capability and distinctive and complementary brands. They argue that the combination has ‘compelling strategic logic’ and represents an attractive opportunity for both companies to enhance their position in online betting and gaming and to deliver synergies, customer benefits and shareholder value.”
BBC reports that “Paddy Power shareholders would own 52% of the combined business, with Betfair investors owning the remaining 48%. [...] The new group would be the UK online market leader with a 16% share, according to industry data, passing a merged Ladbrokes/Coral on 14%, as well as William Hill and the privately owned Bet365. Shares in Betfair soared 17% to £30.60 on Wednesday, while Paddy Power jumped more than 18% in Dublin.”
The merger comes in the tailwind of consolidation of the poker market. Nutblocker reported in July about the 888 buyout of PartyPoker and last month Ladbrokes and Coral (IPoker) announced their merger as well. While the companies offer many other services besides online poker, it’s interesting to see what these mergers and acquisitions can produce for the poker market. PokerStars has been the market leader, almost a monopoly, in the recent years. It would be refreshing to see serious competition for PokerStars and thus see the market evolve and bring in new players to a online poker market ran by big, reliable operators.
