Acquisition of WPT part of PartyGaming strategy
Since the announcement of the acquisition of the World Poker Tour by PartyGaming for $12.3 million earlier this week, there are many rumors in the industry that the acquisition is in preparation for re-entry into the U.S. online gambling market, PartyGaming isn’t denying this.
The acquisition of WPT is the first deal of the company in America since the settlement of $105 million to avoid prosecution. A spokesperson said: “PartyGaming has had a long term relationship with WPT, and we think this agreement is a great combination of two great brands.” The WPT is based in the U.S. and owns rights to poker tour TV shows, licensed products, merchandise and also operates a small online gambling site. PartyGaming is WPT’s biggest customer, and was responsible for one third of its revenue in the first half year. A spokesman for PartyGaming said: “Mergers and acquisitions are still very much a part of our strategy, we’ve been saying for several months that the industry is ripe for consolidation.” Internet casino gambling is banned in the U.S. under the rules of the UIGEA, it is expected that the legislation will be lifted later this years, what could unleash a rush of online casinos trying to enter the U.S. gambling market. The spokesperson for PartyGaming said: “We have made no secret of our desire to enter the US as and when it is possible. At the moment there are no concrete plans as, for the most part, you can’t currently provide internet gambling there.” The acquisition is not financially significant, but it is a good strategy. WPT has a physical presence in America, as the market opens PartyGaming can use it as their distribution channel.
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