Online Casino in the European Union
Ongame Acquisition Falls Through
A deal reportedly worth 19.5 million British pounds is in danger of fading into oblivion now. The deal was signed last March 2012 between Bwin.party Digital Entertainment and Shuffle Master and reports indicate that it will not push through anymore. This goes to show how fast changing the online casino world is, and how fickle it is. Just when you thought you have finalized everything, the deal fails and both parties are back to square one. Online casinos typically enter into deals with other internet gambling firms to provide their loyal customers with new and exciting products.
The deal between Shuffle Master and Bwin.party Digital Entertainment involved an upfront fee worth 10 million British pound for the first five years of the deal period. A statement released by Shuffle Master revealed that it has decided to drop its plans of acquiring Ongame Network Ltd. after a thorough and careful consideration. The Ongame Network is a provider of online poker products based in Europe and is a subsidiary of Bwin.party Digital Entertainment. Along with Shuffle Master’s announcement is a statement released by Bwin.party saying that they will still be selling their surplus assets and they are now dealing with other online casinos and other parties that have expressed their interest in buying Ongame Network.
Gavin Isaacs, Shuffle Master’s CEO, explained why the arrangement failed. He said that acquiring Ongame will not give them the results that they needed, and it will cost them a lot of upfront investment. He also blames the declining conditions in the European online casino gambling market. Now that Ongame is back on the for sale market, let us wait and see who is the next buyer in line.