According to various reports, renowned online casinos PartyGaming- a parent company of Party Poker and Bwin are currently in merger talks that could create a multi-billion pound "gambling giant". Finally, after following the US government’s decision to delay implementing the UIGEA for 6 months, the possibility of the online gaming ban in the US being overturned has become increasingly more likely, and mergers are now becoming seen as an important way that companies could consolidate their positions in the internet gaming market.

Earlier this year, PartyGaming settled with the US Department of Justice for $105 million dollars. Many people believed that this settlement would lead to increased acquisition activity by PartyGaming, and this certainly appears to be the case.

“Speculation about consolidation in the online gaming sector has been rife in recent months, A tie-up between PartyGaming and Bwin would be logical given the former’s ambition to grow its presence in sports betting, an area where the Austrian group has particular strength. PartyGaming, based in Gibraltar, is best known for offering poker and casino games. It seems likely that if the two businesses can agree a tie-up, the deal would be structured as a merger of equals.” Said by a Sundat Times newspaper reporter.

A merger between the two online gambling sites, if it were to take place, would create an online gambling giant. PartyGaming trades on the London Stock Exchange and is valued at around 1 billion pounds, while Bwin trades on the Vienna stock exchange and is valued at around 1.2 billion pounds. Any new operation would have an estimated value in excess of £2 billion, could offer the whole range of gambling activities to its customers, and would be well placed to exert considerable control over the currently scattered state of the online gaming market.

About Bwin online casino: Bwin has one of the largest online sportsbook operations in the world, while PartyGaming has the fourth largest online poker room.

About PatryGaming online casino: PartyGaming wants to expand its sports betting business, while Bwin is eager to increase their online poker numbers. A merger between the two companies would seem to make a great deal of sense.

Online gaming company 888 has come into the limelight again after its second deal in a month. As 888’s business-to-business division has signed a joint venture with Tsogo Sun Gaming Group, of South Africa, which will help the brand expand into online gambling.

A collaborative company will be formed ahead of the launch of sport betting. This will be followed with the launch of online casino, online poker, and bingo products.

888 said the deal was the first of many such future partnerships in regulated markets. It follows news earlier this month that 888's software was to be used by a renowned US casino Harrah's Entertainment in its expansion into the UK.

As the Senior Trader of Accendo Market, Charlie Menegatos stated, “We have noted the consistent progress at 888's B2B division Dragonfish in sealing affiliate deals and generally expanding the reach for the company as a whole”.

On the other hand, Gabi Campos, managing director of 888 Dragonfish said of the partnership, "This partnership is the first of many targeted at regulated markets, where Dragonfish's partners operate under local licenses and enjoy the benefits of such regulatory arrangement"

Dragonfish will supply back-end services such as business analytics, customer relationship management, call center, payment processing and technology. The company will market the 888 brand in the country as well as a newly-developed brand for Tsogo Sun Gaming.

The Tsogo Sun Gaming has a notable reach across a wide turnout of people in South Africa, with average annual footfall across the group's 7 casinos go beyond the bounds of 21 million people.

The chief financial officer of the Tsogo Sun Group Marcel Von Aulock said, “Tsogo Sun Gaming is a dynamic and innovative leader of gaming in South Africa so our move into online gaming is a natural progression for the business. Dragonfish has a proven pedigree in online gaming technology delivery and this partnership provides an excellent platform to expand our offering.”

Through the help of the mutual partnership, the shares in 888 Holdings rose 1% in early trading this morning and the South Africa has been in the process for corroborating online gambling regulations now.

The 888.com, one of the U.K.’s second-largest online casino company, that soared high to 14%. The company’s Dragonfish business-to-business unit will provide poker and casino services to Harrah’s in “a multimillion dollar” deal, 888 Chief Executive Office Gigi Levy said.

The deal that they have signed is to provide online services to a unit of Harrah’s group, thus it could be the way of a potential re-admission into the US market.

“Harrah's leasing of online software from 888 subsidiary Dragonfish shows an acceptance by Vegas gaming operators that buying software may be a better route than developing their own product.” said Jerry Boyle, a Las Vegas gambling observer.

“It’s going to be the big U.S. players that take advantage of the situation,” he said. “The easy entry for us, being that all these companies require infrastructure and services, is on the Business-to-Business side.” Gigi Levy said.

As Harrah’s, one of the powerful casino company in the world, has been lobbying the US Congress to consent to already licensed gambling operators in the US to take online stakes from US residents. 888 have seen this as an opportunity to come into possession of an earlier foothold in the US market if online gambling is legalized in the States.

The 888 will offer support services in gaming and payment software for Harrah’s World Series of Poker and Caesars Casino brands their support services in gaming and payment software within the UK. 888 are also deliberating about business contracts with other US companies, and they are not in the casino industry. They are also looking to make an acquisition for the business unit in the near future.

It was surprising that Harrah’s preferred to partner with 888 that has so far declined to seek a settlement with the Department of Justice over its operations in the U.S.

888 is also discussing additional business contracts with a “few other U.S. companies and not just in the field of casinos,” Levy said.

He also count upon making an acquisition for the business unit “in the coming quarter.”