London Capital Group and PartyGaming ink deal. A new player in an ultra competitive sector.
The spread betting market in the UK sector is one of the most competitive in the world, mind you, so is the igaming sector, so one shouldn't be surprised that PartyGaming is ramping up, as its been doing with its casino, poker, bingo and media related sectors of the company.
News today is that PartyGaming has inked a three-year deal with London Capital Group to soon offer a financial spread betting platform. PartyGaming also has brand names PartyBets.com and PartyMarkets, so its probable that the deal with go into one of those brand names.
Industry analysts will of course question if London Capital Group assisting another white label partner into the UK market is a good or bad move. That's something only time will tell. PartyGaming is a large and established player thus can help to offset any costs and reduce majors risks in prime spread betting.
PartyGaming Plc is reportedly the world’s leading listed online gaming company.
The Group is a constituent of the FTSE 250 share index with its shares listed on The London Stock Exchange under the ticker: PRTY. In the year to 31 December 2008, PartyGaming’s Continuing operations generated revenues of $472.9m and Clean EBITDA of $144.2m.
Partygaming has a global reach, and that should place them in a strong position. The Asia Pacific region, and in particular, Australia, is seen to have strong growth potential in the sector.
It's expected that a number of PartyGaming punters will take to the financial spread betting offering, just as some bingo players take to casino, poker and table games. Exactly how much cross over audience for spread betting remains to be see.
*The writer is the founder of the Media Man group of companies including Global Gaming Directory and Casino News Media and has b2b dealings with a number of PartyGaming brands, as they do with dozens of brands in the igaming, gaming and financial sector.