14 DAY TRIAL // Austrian online gambling and gaming entertainment operator bwin Interactive Entertainment has confirmed it is close to acquiring Gioco Digitale, the first independent Italian online gaming site, in anticipation of an expected deregulation of the Italian online gambling market. The sum to be paid wasn't disclosed but it is believed to be up to 100 million Euros.
Both companies have agreed on the deal in which bwin will buy 100 percent of Gioco Digitale's shares and the talks are in the final stages but the terms aren't final and the transaction still has a chance of not going through. bwin’s shares rose significantly after the announcement and the acquisition, if it becomes final, should help bwin's bottom line.
The announcement was made after several rumors and reports of the impending deal started popping up. “The Board of bwin Interactive Entertainment AG ("bwin") and Gioco Digitale S.p.A. ('Gioco Digitale') and its shareholders have agreed on principle terms for the acquisition of 100% of Gioco Digitale. The parties are in the final stages of working on a sales and purchase agreement, however, there can be no certainty that a final binding agreement on the transaction will be reached,” read the statement in its entirety.
bwin claims to be the world’s largest online gambling company with operations in 25 markets offered in 22 languages and processing more than 30,000 bets every day. The biggest revenue earners are its sports betting website bwin.com and the online poker site pokerroom.com. The company had made public its plans to extend to the Italian market in its third quarter financial statements.
A new law recently approved in Italy will enable poker gambling, as well as other games of chance involving real money to be operated in the country on top of the other forms of online betting currently legal in Italy making it a prime target for expansion in those areas.