William Hill, Britain's biggest bookmaker, is in talks with Canada's Amaya, owner of PokerStars the world's largest online poker business about a £5bn "merger of equals". The new company would be headquartered in London, with Amaya's CEO, Rafi Ashkenazi, taking the top job.
The deal adds to "the feeding frenzy among bookies", say Peter Evans and Daniel Dunkley in The Times, driven by "rising taxes and a crackdown on fixed-odds betting terminals". Mergers include Paddy Power and Betfair, Ladbrokes and Gala Coral, and GVC and Bwin.party.
"The new company would have 60% of its revenues from online betting, and 40% in land-based' business," says Murad Ahmed in the FT, making it "well diversified across different betting areas", and bringing cost savings of more than £100m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Still, the deal is risky, says Nils Pratley in The Guardian. PokerStars faces a lawsuit in the US state of Kentucky that comes with a potentially huge fine. And the combined firm would be too exposed to markets where gambling is either "banned or the rules are so unclear that your local operation can be legislated out of existence".
Overall,"both these companies have bad hands, says James Moore in The Independent. "The best bet for their shareholders? Fold."
-
Watch out for fake Steven Bartlett video – you could lose thousandsScammers are trying to tap into the Trump tariffs chaos, but knowing what to look out for could save you thousands of pounds, says Kalpana Fitzpatrick
-
Can Donald Trump fire Jay Powell – and what do his threats mean for investors?Donald Trump has been vocal in his criticism of Jerome "Jay" Powell, chairman of the Federal Reserve. What do his threats to fire him mean for markets and investors?
-
Company in the news: William HillFeatures These are tough times for bookmakers, but William Hill is doing all the right things. Phil Oakley explains what that means for the shares.
-
Shares in focus: Should you take a punt on William Hill?Features Bookies William Hill is a decent business. But is it worth a flutter? Phil Oakley investigates.
