Mergers and Acquisitions lead Online Gaming market in 2009
12th January, 2009
According to a note published Evolution Securities this morning, merger and acquisition activity and industry consolidation is like to outweigh risk and regulatory uncertainly for the online gaming sector in 2009.
Investor interest in the egaming sector has come after European regulation possibilities and PartyGaming’s December announcement. In their December announcement PartyGaming stated that it was close to a settlement with the Department of Justice (DOJ).
However though a timeline remains uncertain, the idea that the DOJ want to clear outstanding matters before the new US administration takes over on 20 January is another possibility.
While European regulation remains a viable option, enhancing operators’ prospects on the continent. If it all happens too soon, or is rushed, online gaming companies would not be established enough across Europe to compete effectively with the existing land-based operators and state monopolies.
Evolution’s note also stated that with industry consolidation, less egaming companies would be competing for the same customers along with inefficiencies reduced and company valuations clearer.
Operators being better financed than other listed stocks, online gaming firms are looking very attractive to investors at this point in time. PartyGaming and 888 would make the most likely of partners.
By Rommon
