Sportingbet, Bwin End Talks

Online gaming firm Sportingbet announced last week that acquisition talks with European rival, bwin, have come to an end.  In March, Sportingbet confirmed rumors that it had been approached with a takeover offer, bwin being the rumored suitor. 

It just simply did not work out.  Like the Ladbrokes/888 failed merger discussions, one of the issues was how to handle any possible legal problems that may still crop up from servicing U.S. customers in the past.  The Turkish market was also a sticking point, as bwin, owner of the Ongame network, pulled out after the country banned online gambling, whereas Sportingbet still accepts Turkish customers.  

A Sportingbet spokesperson said, “…discussions have now been mutually and amicably discontinued.” 

Analysts are mixed on the development.  Some feel that the trend of failed consolidation is bad for the industry, as firms will continue to feel marketing pressure, whereas others are not worried, believing that merger opportunities will arise in the future.