The rumors that Ladbrokes will acquire competitor 888 now have more credibility. 888 has confirmed that they are currently engaging in talks with Ladbrokes about a possible takeover. Since that remark, shares in 888 have risen by 24%.

Though sources say that the talks are at an early stage, the Sunday Telegraph reported that Ladbrokes was proposing purchasing 888 for a bid of 70 pence per share, a value of approximately £240 million. Ladbrokes is the largest bookmaker in the United Kingdom and has a strong presence online and in physical betting shops. By purchasing the online casino 888.com, Ladbrokes would strengthen their company by offering two big parts of the online gambling market. The two companies combined would have a yearly revenue of approximately £350 million.

Though shareholders are excited by this news, it’s far from a done deal. Four years ago, Ladbrokes considered buying 888, but the deal fell through. One of the reasons given for the takeover never happening was concern that the U.S. Department of Justice could prosecute 888 for accepting American online gamblers prior to the passage of the UIGEA in 2006.

Though accepting U.S. customers before 2006 was certainly not a crime, that hasn’t stopped the Justice Department from shaking down offenders of this imaginary crime. To avoid possible prosecution, PartyGaming and Sportingbet both reached deals with the DOJ where they paid millions to achieve immunity from prosecution (ironically, despite shaking down those companies, the DOJ claims to be the maintainer of law and order who goes after organized crime and corruption). Since 888 hasn’t paid off the feds, some still worry about whether fear of prosecution will once again nix the deal.

In the same way that businesses have to pay off the Mafia for “protection” in order to operate, Sportingbet just reached a deal with the U.S. federal government. With the feds shaking them down, the online betting site did the only thing that would make the harassment stop: They paid for protection.

Sportingbet, a company based in the U.K., reached a non-prosecution agreement with the United States government. As part of the agreement, the company agreed to forfeit $33 million to the authorities, supposedly as penance for their American online gambling operations that took place between 1998 and 2006. Of course, there was no American ban on online gambling during that time period and there still is no federal law against it, though the passing of UIGEA in 2006 acts as a de facto ban.

So here’s how it worked. The government accused Sportingbet of violating a law that didn’t exist and if they wanted to avoid prosecution and maybe even be able to obtain a license if the U.S. decides to regulate the industry, they would have to pay up to the tune of $33 million. Relatively speaking, Sportingbet got off light. PartyGaming, the only other online gambling company to reach a non-prosecution deal with the feds, had to pay $105 million. Under the deal, Sportingbet agreed to pay $15 million by September 30 of this year, $12 million by the same date in 2011 and $6 million by 2012.

A lot of people think the United States will eventually legalize and regulate online gambling, though it’s doubtful that it will happen this year. If that happens, it’s likely that those who agree to pay off these government thugs will have first dibs at overseas licenses. In that way, perhaps Sportingbet and PartyGaming are making business decisions that will turn out profitable in the long term. However, in the short term, it’s hard to get past the bad taste that caving in to the mob leaves in your mouth. For those two companies, I hope it’s worth it.

On Tuesday, France opened up its online gambling market to foreign companies. Previously they banned online casinos from overseas and only allowed domestic casinos to get business from French customers. This, however, was in violation of European Union rules, which set up free trade agreements between EU member nations. After defying the rules, this week France gave in.

Operating an online casino in the French market isn’t easy, though. Their new online gambling laws are very strict and have rules for licensing that many call excessive and some even call “Draconian.” So far, approximately 35 online casino operators have applied for the licensed in France, with the French issuing 17 licenses to the 11 operators. The other 24 online casinos are still waiting for word from the French.

The new French online gambling legislation established a regulatory authority called the ARJEL, which is an acronym that makes sense in France. ARJEL can only give out 30 licenses and a separate license needs to be given for each type of gambling operation, which is why some online casino have more than one. With 17 of the 30 licenses already given out, there are only 13 still up for grabs.

There are a few big-name online gambling companies still waiting for licenses, such as Microgaming, PartyGaming and PokerStars. Other online gambling companies have pulled out of the French market entirely, meaning they will no longer accept bets from French customers. Some big names in that group include Betfair, Spin Palace and Ladbrokes. Those companies say that the rules and restrictions by the French government make it an unsuitable market for turning a profit.

Once the French decided to open the online gambling market, they hurried to get licenses handed out in time for the World Cup, which is the most popular sporting event in the world. Billions of dollars will be bet on the Cup over the next month, so the French want in on the money.

Though the global recession is hurting most businesses, there are some that are thriving. Gun and ammunition manufacturers are making a killing due to Americans who fear that a government that is rapidly expanding its power may soon outlaw the sale of firearms. Fast food restaurants with dollar menus are fattening their wallets because consumers can’t afford good food. The chocolate industry has made a sweet profit because chocolate is a comfort food and right now a lot of people need to be comforted. Whatever company provides the paper for the unemployment offices is doing pretty well, too. The point is, though business in general is bad, some companies are still making money.

Count PartyGaming in that category. Between the second and third quarters of the year, PartyGaming, the parent company of PartyCasino, reported a 17% growth in average daily revenue for their online casino operations. At the half-year point, the company saw underlying earnings rise by 34.8%.

The increase in revenue is attributed to an aggressive marketing strategy as well as the launching of 60 new games. That expansion is believed to have added new customers and convinced established customers to stop by the site more often.  The increase in revenue is very welcome news to the company, who is paying $105 million to the US government in a settlement related to the Unlawful Internet Gambling Enforcement Act (UIGEA).

According to CEO Jim Ryan, though some of their websites have seen losses, PartyCasino has been their biggest earner.  He stated that “Casino has been our star performer and continues to go from strength-to-strength, consolidating our position as the world’s leading online casino.” That is good news indeed. So when you get a stomach ache from eating too much chocolate, log on to PartyCasino and enjoy the new games that have made the online casino profitable.

The world’s top executives from the online gambling industry have descended on the Bella Centre in Copenhagen for The European i-Gaming Congress and Expo. On the second day of the expo, the top brass of seven of the industry’s biggest online gambling companies gathered for a panel discussion and weighed in on the future of the online gambling industry.

The panel, a who’s who of the online gambling world, 888.com CEO GiGi Levy, Petter Nylander of Unibet, Bwin’s Norbert Teufelberger, Betfair’s David Yu, Ladbrokes’ Ed Andrewes, Party Gaming CEO Jim Ryan and William Hill’s Henry Birch.

Mr. Levy was particularly optimistic about online gambling industry’s future, mentioning that only 8% of the $350 billion online gambling industry comes from online activities and that there is plenty of room to grow. Still, he did seem somewhat reserved about the new regulations facing the European market. “Regulation, and in particular the recent ECJ verdict, is the big thing facing us,” said Levy. “It is the one thing that could change the industry altogether on the European side.”

Norbert Teufelberger, Bwin head honcho and man with my favorite name ever, though admitting the ECJ ruling was not a help to his company, took the high road and had some positive things to say about European regulation of online gambling. “This will benefit local operators too, and will create3 a very tough time for the pirates.”

CEO of PartyGaming, Jim Ryan maintained that the recent Harrah’s deal would not be the last of inked deals in the USA and that he was sure his company would be back in the US in one form or another eventually. In fact, all present are currently looking for ways to include the US market in their future plans.

In fact, Betfair is super busy in the states with their hores racing deal with TVG. David Yu made it clear that Betfair approaches the legalities in the US conservatively and with caution, but added that the demand was definitely present in the American market. Rumor has it, in continuation of their recent marketing strategies, they will be launching an aggressive Happy Meal campaign with McDonald’s that is in no way aimed at minors featuring toys like “play fake-ids,” Pokey the Poker Player and Rolly the Roulette Wheel action figures and Betty BetFair dolls for girls women.*

While the industry as a whole seems confident in the future of US online gambling, they seem divided over the Asian market. Jim Ryan mentioned that Party Gaming will be steering efforts away from the Asian market while Bwin is continuing to invest in the possibility of a regulated online gambling market.

* I’m kidding. I’m kidding. Relax Betfair lovers. That Happy Meal thing is completely false and untrue. I think they’re working with Wendy’s.

Some say that movies and online gambling don’t mix. It’s like eating a spoonful of Drano; sure, it’ll clean you out, but it’ll leave you hollow inside. I disagree. I like movies and I like online slots, so online slots with movie themes are a big hit with me. I especially love anything themed after movies I grew up with. I guess I’m just nostalgic that way. It seems that every online casino has slots themed after popular (and sometimes not so popular) movies. PartyCasino, who is no exception, has released two new titles, Resident Evil and The Naked Gun.

The Resident Evil online slot probably has more mass appeal. It is based on a terrible movie that is based on a pretty cool video game. It’s also very violent and has scary looking creatures and Milla Jovovich in short shorts, so basically it has everything young gamers could want. The game is a five-reel, 20-line online slot and features symbols of characters and objects, such as umbrellas, from the franchise.

The Naked Gun online slot is a little harder to understand, though it’s more exciting for me because I used to love the movie. Honestly, though, I think the idea for this game came at the last second at a marketing meeting. It was fourth and fifteen and they were looking at a full-court press. Then someone made a joke about the ideal assassin being one who doesn’t know he’s an assassin and the idea for a Naked Gun online slot was born. The game is a five-reel, 20-line slot and features both symbols and video clips from the movie series.

Both new online slots allow you to bet anywhere from one penny to $1,000. No matter how daring you are feeling with your betting, anyone can enjoy watching a few clips of Frank Drebin doing or saying something deeply stupid. To join the fun, visit PartyCasino.com.

Just three weeks ago, it was announced that Gamynia would acquire WPT Enterprises, the parent company of World Poker Tour. Oh how things have changed. It seems PartyGaming has swooped in at the last minute and usurped Gamynia’s deal right out from under their noses.

The deal sees PartyGaming online casino forking over $12.3 million in cash with a continued 5% in revenue share between WPT and PartyGaming on purchased assets which include television programming, brands and contracts.

The sale still needs to be approved by shareholders, but the sale looks likely. However, that’s what we said a few weeks ago about Gamynia’s deal which offered up $9.1 million plus future revenue percentages. That deal was supposed to be closed in the fourth quarter of this year, but obviously things done changed. The filing, which occurred on Tuesday explained “Under the Purchase Agreement, the Company is to file a preliminary proxy statement with the SEC within 21 days of signing the Purchase Agreement.” The 21 days had not yet elapsed, hence PartyGaming’s offer.

The purchase of World Poker Tour has been a long time coming. Stock prices for the company have been sliding steadily for months now for the well-known brand. Once the sale is complete, WPTE will change it’s name and continue with its operations.

Though many other foreign casinos are giving up, PartyGaming continues to lobby Washington in a push to legalize online gambling in America. Though many are optimistic of Congress’s chances of overturning the Unlawful Internet Gambling Enforcement Act (UIGEA), certain language in the bills to do so have worried overseas companies. In Congress, UIGEA is being attacked on two fronts: a bill in the Senate introduced by Roberto Menendez and a bill in the House of Representatives proposed by Barney Frank. Both bills, it was learned last week, include a provision that could exclude overseas casinos from doing business with American citizens. Menendez’s bill, the Internet Poker and Games of Skill Regulation, Consumer Protection and Enforcement Act, or cleverly called IPGSRCPEA, contains a clause allowing the Treasury Department to reject applicants who fail to file “a federal or state tax return…owed to a jurisdiction in which the applicant operates or does business.” Frank’s House bill, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, which often goes by the acronym IGRCPEA (What? They can’t all be as clever as the PATRIOT Act), has a similar phrase.

The problem is that PartyGaming is based in Gibraltar, which last time I checked is not a jurisdiction that pays income tax to the United States. Other overseas online gambling companies have taken this seemingly “buy American” clause to mean that they will not be able to do business in the States. So it seems that Congress is all about protecting the people’s right to gamble their money online, unless of course they want to deal with one of them foreigners. I understand overseas online casinos being unhappy with the buy-American clause, but in this economy, it’s every man for himself. America needs to protect itself and its people, and keeping the gambling money in our country is a good idea. If only they can convince the customer service departments for computer manufacturers. PartyGaming is unphased, though, and continues to lobby on Capitol Hill (Wait, I thought Obama said there would be no more lobbyists in Washington!). They are confident that they can convince Congress to remove the clause from the bills. Since the government operates the same way as the mafia, paying a little money could get them all they need. Only time will tell if PartyGaming has a big enough checkbook.

After a short-lived tenure of only 11 months as PartyGaming’s chief marketing officer, Jon Salmon has moved on to greener pastures. His replacement will be Chris Welch, former managing director of Centrebet, an Australian bookmaker.

Appointed in September of last year came to PartyGaming after acting as managing director of Ads Dot Com, a marketing agency aimed at European online gambling sites. His 25-year career saw him involved in marketing on some of the UK’s leading household brands.

Chris Welch, like Salmon, will report directly to PartyGaming’s CEO Jim Ryan. Strangely enough, this is not the first time the two have worked together. Welch was previously head of marketing for European and Asian software company Excapsa while Jim Ryan was CEO there.

Welch is a seasoned marketing executive in the world of online gambling. Prior to Centrebet, Welch was group marketing director of Pokerstars.com, managing director of LoudVision Marketing and PR Inc. (ultimatebet.com) and global marketing director of Pinnacle Sports.com among others.

According to the UK’s Sunday Times, PartyGaming has agreed to a deal to purchase online bingo giant Cashcade. The deal, which would be officially announced within the next two days, is reportedly worth £100 million, with an initial £75 million in guaranteed money and up to £25 million depending on how the bingo site fares in 2009 and 2010. The expectations are that the site will fare very well, since Cashcade is the UK’s number-one online bingo site in terms of number of players.

Cashcade is owner of popular online bingo companies Foxy Bingo, Mirror Bingo and Cheeky Bingo. Cashcade’s companies make up 23% of the online bingo market share, making them a popular, though pricey, company for acquisition after they announced they were for sale earlier in the year.

Until it is officially announced, though, and the contract is signed, no one should assume anything. After all, until last week everyone assumed online casino 888.com was going to buy Cashcade, but they pulled out of the bidding war when the stakes got too high. And as for the Sunday Times‘ reporting, I have no experience with the newspaper to know how credible they are, but the likes of Walter Cronkite and Dan Rather have led to a general distrust of the media. Of course, we want you to know that you can trust us nice folks at GamblingReview. We’re different. In any case, the deal is said to be announced within the next two days and GamblingReview will update you when it happens.