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Partygaming buys sports bet firm
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03-Aug-2006, 14:35
Online gaming group Partygaming has moved to diversify its business by buying betting company Gamebookers for 102m euros (£69m; $130m).
Gamebookers offers online sports betting and has more than 50,000 active customers in 140 countries.
Partygaming said Gamebookers did not accept bets from customers in the US.
The legality of online betting in the US has come under focus after authorities there arrested the head of rival firm Betonsports in July.
David Carruthers, who at the time of his arrest was Betonsports` chief executive, was subsequently sacked by the firm.
Earlier this week he and seven others pleaded not guilty to racketeering and other charges, while an order preventing Betonsports from taking US bets was extended.
Cross-selling opportunities
Partygaming - which owns gaming sites such as PartyPoker.com and EmpirePoker.com - generates about three-quarters of its revenue from customers in the US.
It is now trying to reduce its dependence on the US market.
"The acquisition of Gamebookers is an important step forward in diversifying Partygaming's business from both a product and geographic perspective," said Partygaming chief executive Mitch Garber.
"We believe that sports betting will be a valuable addition to our integrated gaming platform, which we expect to provide excellent cross-selling opportunities for our expanding base of customers outside the US."
Partygaming has bought Gamebookers from Isle of Man-based Trident Gaming.
Gamebookers has an Antiguan gaming licence and the bulk of its operations are run from a centre in Bulgaria.