Web betting firm Bwin.Party draws rival bids

London-listed online gambling company Bwin.Party Digital Entertainment was at the center of a $1.7 billion takeover battle on Monday as its competitors circled with rival bids.

GVC Holdings Plc is preparing to make a 1.5 billion euro ($1.7 billion) offer in partnership with Canada’s Amaya Inc., consisting of cash and GVC shares, a source close to the matter told Reuters.

This sets the stage for a potential bidding war with 888 Holdings Plc, which earlier on Monday offered to buy Bwin for an undisclosed sum in cash and shares.

Consolidation in the gambling industry had been anticipated as higher taxes and tougher regulations in Britain and other major European markets have been hurting companies.

GVC, like 888, is London-listed. It said on Friday that it had bid for Bwin, but did not disclose details.

GVC has a market value of about $440 million, 888 of roughly $947 million and Amaya of around $3.6 billion.

Teaming up with Amaya would give GVC the necessary cash to take on bigger rival 888, which offers casino, poker and bingo games and is on the hunt for acquisitions.

Such a deal could be similar to GVC and William Hill’s joint takeover of Sportingbet in 2013, when the British bookmaker took control of Sportingbet’s Australian and Spanish operations, leaving GVC with the rest of the business.

“Amaya might come and be prepared to write a much bigger check, even though I think the synergy benefits would be bigger for 888,” Peel Hunt analyst Nick Batram said.

Amaya, which last year bought online gambling sites PokerStars and Full Tilt Poker, was not available for comment outside of regular business hours in Canada.

Gibraltar-based 888, which ended talks on a takeover by William Hill Plc earlier this year, said shareholders with an about 59 percent stake backed its offer. That would indicate support from the family trusts linked to the firm’s Israeli founders.

Bwin said its board and advisers were conducting a detailed review of the proposals received.

Bwin.Party has an interactive gaming license in New Jersey and operates online wagering for the Borgata in partnership with Boyd Gaming Corp. Bwin also has deal with MGM Resorts International to operate online gaming in Nevada, but the company has not yet been licensed by Nevada gaming regulators.

Gibraltar-based 888 partners with Caesars Interactive Entertainment in online gaming in both Nevada and New Jersey. The company operates the gaming platform for the Internet poker network between Delaware and Nevada.

Analyst-turnes-investor Jason Ader is a member of Bwin’s board of directors, having earned the seat last year after launching a proxy challenge.

Review-Journal writer Howard Stuz contributed to this report.