Rumours are floating around that Google could become the next operator of an online gambling domain. The search engine giant is reportedly interested in purchasing bwin.party before the online gambling firm is scheduled to go live with internet casino games in New Jersey by the end of November. However, industry analysts dismiss the speculation as nothing but rumours.
An article was published earlier this week that discussed the ongoing financial struggles of bwin. The gambling firm is warning investors to lower their expectations for quarterly revenues and profits, causing the stock to continue a slippery slope downward.
A relaunch of the once popular PartyPoker, owned by bwin.party, also failed to attract large quantities of players back to the online poker room. Sources indicate the amount of traffic in the new PartyPoker poker rooms fell every day since the relaunch, primarily due to technical glitches that turned players away from the digital poker tables.
However, bwin.party does possess an important ace up its sleeve. The company successfully negotiated a partnership with the Borgata Hotel and Casino in Atlantic City to launch a fully regulated online casino by the end of November.
New Jersey online gambling law requires all online gambling operators to partner with Atlantic City casinos, house the internet servers within the casinos, and split the revenues evenly. According to market analysts, New Jersey’s online gambling industry is forecast to be worth over $1 billion by the end of 2014.
The potential for profits in New Jersey, together with bwin’s current low market value, make the online gambling firm an attractive option for mega-corporations like Google. The rumour mill suggests Google is offering around $3.29 per share of bwin stock, and would complete the acquisition before the bwin online casino goes live in New Jersey.
Skeptics dismiss the rumours as nothing concrete due to Google’s hesitation to support online gambling in the past. The search engine could acquire nearly any gambling firm if the company was truly interested in the industry, which makes a struggling company like bwin less attractive.
Yet neither Google nor bwin has offered to comment on the rumours, causing the speculation to continue swirling.