Two of biggest online gambling groups, 888 Holdings – operator of 888 online casino and Partygaming – operator of PartyPoker are reportedly in talks on a future merger between the two companies.

The two companies are the biggest online gaming operators listed in the UK stock exchange. After the signing of the Unlawful internet gambling act, both companies announced their withdrawal from the U.S market which represents at least 50% of all online gambling revenue. Both stocks crumbled after the announcement of the retirement from the American market.

According a report published by the UK paper The Sunday Times, both companies are currently in talk towards a merger that will unite the two companies. PartyGaming has already mentioned in the past that it is considering several option of acquiring some of its rivals. The online gambling world does not look the same after the unlawful internet gambling act and the ground seems ready for the bigger companies to take over their smaller rivals and secure an even stronger foothold in the business.

PartyGaming is the operator of the world’s biggest online poker room, Party Poker. It also owns several online casinos although the poker room is its main source of income. According to analysts, Party Poker is suffering more after the approval of the new law since their non American poker players will now find the poker room much less crowded than before, meaning fewer poker tables are active. This could lead to lost of interest even by players who are not restricted by American laws. A merging with 888 Holdings will boost up the number of players in its number one revenue source.

Although 888 holdings operates a relatively small online poker room, its main source of revenue is its online casino. A merger with Party Gaming will allow it to offer casino services to Party Poker’s large player base, offsetting any loses caused by the exclusion of American players.

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