One of the bigwigs in online gambling Bwin has announced that it might be selling off a part or all of its online gambling business.
Not a pointer to things to come
The surprising announcement is not as surprising as it appears initially. Even though Bwin is a successful company and one of the best in business it cannot continue in its same form. This is because for a company it is very difficult to adapt to all the opposition legislation which is present as a part of its primary markets. And this is exactly what Bwin is experiencing with the slow moving online poker markets in Europe.
At its infancy a few years ago it seemed the best company in a position to capitalize on a new design of opportunity that online gambling had represented a few years before. Bwin was made from a merger between sports betting company Bwin and the online poker enterprise PartyGaming in 2011. And as of November Bwin has said it’s looking out for options which would help it to divest.
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Some options for Bwin
Amaya the Canadian firm which has been seen on an aggressive buying spree is rumored to be one potential suitor. Last year itself it acquired the online gambling giants PokerStars and Full Tilt Poker.
The official information from Bwin by its chairman Phillip Yea is even though it would not disclose the names of Bwin, the company is in a number of secondary talks with potential suitors.
Market failure in the pipeline?
The success of any business model depends a lot on the integrated model system it caters to. Sovereign governments in EU remain unstable and unpredictable and stability for online gambling depends a lot on the regulations and other processes in each country.
The reality thus is that online gambling providers need to wait on the sidelines while governments across the world work out their regulations and remove unfavorable business conditions to facilitate online gambling businesses.
A way out
A model which is not reliant on only projected expansion but also majorly focuses on the tangible markets in these countries which online gambling is properly regulated can temper unrealistic or projections that seem to be utterly ambitious and thus help in guarding against bad investments towards lowering of operational costs.