Italian Online Gambling Giant Gioco Digitale Sold To Bwin

In Europe, the online gambling industry is beginning to consolidate. The bigger companies have started buying many of the smaller companies, and Bwin has been one of the more active aggressors in the market.

Bwin announced on Monday that they have agreed to buy Italian online poker giant Gioco Digitale. The move is a response to PartyGaming who has bought two prominent operators in the World Poker Tour and Cashcade.

The purchase by Bwin will cost the company 115 million euros between the cash it will pay and the shares it will buy. Bwin is expected to buy fifty-six percent of Gioco Digitale at the closing price from Friday. The rest of the purchase will be made in cash.

"These European gaming companies know that now is the time to but up the smaller companies and go strong into these markets that are opening up," said observer Vinnie Brandille, "The bigger companies are simply positioning themselves for the near future."

Italy is one of the countries that is in the process of expanding their online casino laws. Other countries in Europe have also changed their laws recently and have become more liberal when it comes to their Internet gambling stance.

Bwin already has about a seven percent market share in Italy before the Gioco acquisition. Gioco has the largest market share in Italy at close to twenty percent. When the two companies are combined, Bwin will have a strong hold on Internet gambling in the country.

September 15, 2009
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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