Speculation over gaming firms' merger

Amaya looks at prospective merger with sports bookmaker

Isle of Man-based Amaya Group Holdings and British-based William Hill are in talks to identify whether or not a £4.5 billion merger would benefit both brands.  

Information was leaked to Reuters - prompting both organisations to release statements outlining their positions on the weekend.

There's a third player - GVC Holdings Plc. is another suitor vying for the attentions of the sports bookmaker at 292 pence per share.

All three aren't permitted to speak on the matter publicly - but we found out more to give our listeners a little background.

If poker-dominated Amaya - which has largely traded on a mix of regulated and unregulated markets; including it's acquisition of PokerStars in 2014 - is given the green light by William Hill, it'll be providing the brand with an exit from Gibraltar.

The jurisdiction is suffering a hit as investors wise up to a negative impact on the e-gaming sector rising from the Brexit talk fallout.

There, the Isle of Man lands sunny-side up - with hopes of securing it's position as a 'safety net' jurisdiction with which to do business.

Although it's being described as a marriage of equals, sports bookmaker William Hill has had no engagement with US markets, which isn't ideal for Amaya's board.

It's also only traded in regulated markets - that could raise the profile of Amaya as it looks to expand its portfolio outside the realm of a declining poker market.

The merger would create a natural market synergy, but will there be a synergy in culture? We'll soon find out; the tipping point rests on risk appetite from both boards.