Consolidation of online gaming sector looming

25-12-2009

The sale of Cashcade Limited, marketer of online gaming, is near, since 888 Holdings and PartyGaming will probably present theirs bids in the following days, UK media revealed.

Cashcade sale

888 Holdings seems to lead the acquisition of Cashcade, which represents a value between £70 million and £100 million, according to the Telegraph. Paddy Power, Ireland's largest bookmaker, also appears to be one of the possible buyers, media reported. Cashcade Limited, the UK-based online gambling marketing company, recently engaged Jefferies & Co., subsidiary of Jefferies Group Inc, to lead the auction.

Online gaming consolidation

Jim Ryan, PartyGaming's CEO, refused to make direct comments on the Cashcade acquisition, when he was interviewed last Wednesday. Nevertheless, he revealed PartyGaming’s positive attitude towards online gaming consolidation, while they are reserved about when this will be realized.

Jim Ryan

He continued by saying: “The rumor about an online gaming consolidation has been going on for many years. We intent to be a material part of the consolidation, as this will always depend on correct assessments and how eager parties are to realize this, which has frustrated the consolidation in the past.”
“The gaming industry has always been characterized by growth, while organizations’ expectations regarding assessments regularly don’t correspond with the current market circumstances,” Ryan commented.