Established Bookie A Good Fit For Party Gaming

The Observer reports that London-listed gambling group Party Gaming is leading the race to buy the predominantly sports betting Victor Chandler group, which also has online casino and poker interests. Both companies are off-shore, being based and licensed in Gibraltar. PartyGaming is one of three bidders for the Chandler business, said to be worth about ₤300 million.

Party Gaming is currently flush with a ₤500 million purchasing fund which it raised after its flotation last year, and apparently sees the Victor Chandler sport betting business as a suitable acquisition.

PartyGaming and Victor Chandler refused to comment on the acquisition but sources confirmed PartyGaming's interest and said negotiations would probably begin in September after Chandler returns from holiday.

The grandfather of its present boss, also Victor Chandler, founded the Victor Chandler Group. After his father died, Chandler, now aged 55, inherited the ailing betting business and worked hard to turn the company around. The group now has a ₤1.4 billion turnover thanks to Chandler jnr who pioneered telephone betting. The corporate finance firm Zeus Capital has been hired to evaluate unsolicited approaches and advise on how to proceed.

Chandler moved the business to Gibraltar in 1996 and trade improved dramatically. By making the move, the business avoided betting taxes, incurring the wrath of the Chancellor of the Exchequer Gordon Brown, who abolished tax on punters' winnings as a result of Chandler's success.

PartyGaming is looking to divert its business from poker. It currently derives most of its business from America but is successfully moving into other markets. The sport betting business - particularly in Europe and Asia - is seen as a good alternative.

The Chandler Group built its reputation servicing high-rollers, but with the advent of its internet operations, which now account for almost 80 percent of bets placed, has developed a wider client base. In addition to its sports betting, it operates online casino and poker sites. There are two other offers for Chandler but the identity of these has not been publicized.

Chandler's is seen as an attractive acquisition because it does not accept wagers from America, where internet sports betting is illegal. They have a significant following in the Far East.

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