Online Gambling Hedges Its U.S. Bets

Online Gambling Hedges Its U.S. Bets

Under attack in the States, some online gambling sites are merging and looking for growth elsewhere. Despite the odds, others are staying

The U.S. Congress has yet to pass the pending legislation cracking down on Internet gambling. But in the meantime, the Justice Dept. has cast a much deeper freeze over the business with its July arrest of BetOnSports Chief Executive David Carruthers. Now, under pursuit of U.S. legal authorities, European online gaming companies are scrambling to reduce their exposure in the U.S. and find new markets in Europe and Asia.

Industry insiders say the trend could signal the start of a major wave of consolidation. Earlier this month, PartyGaming, the world's biggest Web poker company, spent $131 million to buy Bulgarian-based Gamebookers, a sports betting business focused on Continental Europe. According to Aug. 21 news reports, Gibraltar-based PartyGaming is also the top candidate to bag rival Victor Chandler, which has no U.S. exposure.

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