America's MGM Mirage and Britain's Ladbrokes Eye Injured Online Gambling Giants.

America’s MGM Mirage group and Britain’s Ladbrokes group, two of the world’s largest gambling entities, have started exploratory takeover talks with internet rivals decimated by recent US Congress legislation banning online gambling, according to “The Business” newspaper.

It is understood that MGM, the world’s second-largest gambling group, has contacted various parties, including PartyGaming, the poker market leader, to discuss a takeover.

Talks are at an early stage, but bankers involved with MGM stressed that the US company’s interest is serious. Bankers noted that the Las Vegas-based MGM is interested in buying a market leader and is considering a move on any group created by a merger of PartyGaming, 888 Holdings, along with Sportingbet.

The slew of rumors forced 888 to reveal its hand by issuing a statement to the London Stock Exchange admitting it had been “active” and was talking to “more than one party”. A brand designed for the Asian market, 888 has no real sports betting offering. It derived about half its revenues and profits from the US before that business was closed down but has been developing other territories.

Interim results in September, 888’s last financial announcement before the American bombshell, report net gaming revenues had grown 61% in the UK and 16% in continental Europe. “The truth is that everybody is talking to everybody else,” said one source involved in discussions. “Things are at an early stage – the US situation only developed a few weeks ago.”

“The Business” also reports that one party involved in these talks is Ladbrokes, who refrained from commenting except to say that it was watching the situation with interest. Ladbrokes has a popular online casino and poker website but these are dwarfed by its sports betting arm. It has made no secret of its desire to expand into European and Asian markets.

The move by Ladbrokes is in direct contrast to the bookie’s two great rivals – William Hill and Gala Coral– who have said they will not be acquiring online rivals.

William Hill chief executive, David Harding says his company is not making any approaches and Gala Coral is looking at buying “The Tote”, the state-owned pool betting business.

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