Online gamers set for consolidation wave in 2010

Consolidation among online gaming firms is set to spark into life in 2010 with a possible deal between PartyGaming and Austria's bwin seen as the potential catalyst for a wave of takeover activity.

"I think 2010 is going to be the determining year," said one senior executive of an online gaming group who asked not be named. "I do think there's going to be a domino effect, meaning the first deal gets everybody else to run. You don't want to be the last one left without a partner." If a merger of Party and bwin were to materialize, it could cajole the likes of 888, Sportingbet and Playtech into tie-ups. Traditional betting firms like Ladbrokes, William Hill and Paddy Power may also look to make acquisitions to boost their online presence.