Ladbrokes and 888 will no longer merge
Bookmaker Ladbrokes and online gaming website 888.com are no longer holding talks to discuss a merger, it was announced yesterday.
The £450 million acquisition of the online group 888 was ended primarily due to complications arising from US gambling laws.
The Unlawful Internet Gambling Enforcement Act (UIGEA) which came in to force last year was cited as one key reason for the problems for the British bookmakers.
Speaking about the recent decision to end talks, Ladbrokes chief executive, Chris Bell, said: “The issue was the complexity of the US. It wasn’t just the litigation risk. But we have departed as friends, not enemies.”
Despite the negative news, Ladbrokes’ share price rose following the announcement, although shares in 888.com dropped 5.7 per cent.
It is likely that Ladbrokes’ profits were saved by the 20 per cent increase in winnings from online gambling, which rose to £144.4 million for last year.