The word is out that Caesars Entertainment – one of the largest live gambling concerns in the world; has made an approach to Gamesys regarding a possible merger/takeover. Gamesys is the well known online bingo website software platform on which both Jackpot Joy Bingo and The Sun/News Of the World Bingo operate. Caesars Entertainment owns the World Series of Poker (WSOP) brand, Harrah’s and Caesars Palace Hotel and Casino, Las Vega amongst other concerns. They have been the one US gambling company to have consistently maintained that online gambling should be allowed in the US, while other brands have been against this; although things are changing now.
Gamesys is a London-based company and as talks are in the very early stages it has been unclear what type of offer has actually been made. Experts are saying around the £300 million mark which would be justified judging by current Gamesys profits. Despite this interest in the company, shareholders are said to be happy with the continued performance of Gamesys and apparently are not eager to sell. They are still a private concern, having opted not to go public. Year-end figures from March 2010 reveal a profit of £21million on a turnover of £74million.
Co founders Andrew Dixon, Robin Tombs and Noel Hayden own two thirds of the company between themselves, and the latest dividends paid somewhere in the region of £29 million. Obviously this two-thirds ownership saw two thirds of these dividends paid to the co-owners; not a bad little living if we must say so ourselves! In 2006 PartyGaming was keen to try and buy Gamsys out; at the time they made a bid of £200 million! They pulled out of the offer after the untimely promulgation of UIGEA which effectively slashed PartyGaming value by 60%. This deal could give Mitch Garber a second bite at Gamsys; he now runs Harrah’s interactive and was in fact the CEO of PartyGaming until 2008. This looks like a definite pitch for positioning in advance of the expected lifting of bans on online gambling in the US.
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