According to reports in The Business, both MGM Mirage and Ladbrokes have initiated talks with rival online gambling firms in the hope of reaping the benefits of an unsettled industry. Several large firms have been hit hard by the U.S Congress’ decision to approve anti-gambling legislation, making them ripe for picking by other firms less affected by the U.S stance.

While rivals Gala Coral and William Hill have said they are not interested in acquiring other firms in the near future, fellow British bookmaker Ladbrokes has reportedly expressed interest in purchasing a market leading online casino firm. Among those linked with Ladbroke’s name is poker giant PartyGaming and main rival 888 Holdings. MGM, the world’s second-largest gambling group, has also allegedly contacted PartyGaming, to discuss a takeover.

Both Ladbrokes and MGM could profit heavily from purchasing a fellow online casino firm. Las Vegas-based MGM has made no secret of the fact that it is looking to purchase a market leader and would ideally favor acquiring a firm created by a merger of PartyGaming and 888 Holdings. 888 has further fuelled rumors by issuing a statement confirming its role in initial talks is “very active” and that it is talking to “more than one party. The truth is that everybody is talking to everybody else,” a source reportedly involved in the discussions commented. “These things are at an early stage – the US situation only developed a few weeks ago.”
Ladbrokes, which operates mostly a sports-betting business, has indicated that it is interested in an expansion into new European and Asian markets. 888 would be a highly suitable acquisition given that the firm has a branding already in place in Asian markets and no sports betting presence. It has been hit heavily by the new legislation as more than half of its profits have traditionally come from the United States.
In its most recent financial report, 888 announced that net gaming revenues had increased 16 percent across Europe and 61 percent alone in the United Kingdom.

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