Well established bookie is regarded as a neat fit for Party Gaming sports betting aspirations

The UK newspaper The Observer reported over the weekend that London-listed gambling group Party Gaming is leading the race in a bid to buy the predominently sports betting Victor Chandler group, which also has online casino and poker interests. Both companies are licensed and based in Gibraltar.

The newspaper reports that PartyGaming is one of three bidders for the Chandler business, said to be worth about GBP 300 million. Party Gaming is flush with a GBP 500 million war chest raised after its flotation last year, and apparently sees the Victor Chandler sport betting business as a good fit following its seperate acquisition last month of the GBP 69 million Bulgarian based Gamebookers business.

The Victor Chandler Group is highly regarded and well established. It was started by the grandfather of its present boss, also Victor Chandler. He has hired the corporate finance firm Zeus Capital to evaluate unsolicited approaches and advise on how to proceed.

Both Victor Chandler and PartyGaming refused to comment on a possible acquisition but well-placed sources confirmed PartyGaming's interest to The Observer and said negotiations are likely to begin this September after Chandler returns from holidaying on his boat in the Greek islands.

Chandler (55) inherited a floundering betting business after his father died and turned the company around. The group now has a GBP 1.4 billion turnover thanks to Chandler jnr pioneering telephone betting. Chandler moved the business to Gibraltar in 1996 and trade took off. By making the move, the business avoided betting tax, incurring the wrath of Labour government Chancellor of the Exchequer Gordon Brown, who abolished tax on punters' winnings as a direct result of Chandler's success.

Chandler's is seen as an attractive target because it does not take bets from America, where internet sports betting is illegal, and has a significant following in the Far East.

PartyGaming is keen to broaden its business away from poker. It currently derives most of its business from America but is successfully diversifying to other markets. Sport betting business - particularly based in Europe and Asia - is seen as a good alternative for the firm.

Chandler Group built its reputation servicing high-rollers, but with the advent of its internet operations, which account for almost 80 percent of bets placed, has developed a wider client base. As well as its sports betting, it operates online casino and poker sites. There are two other offers for Chandler though the identity of these would-be purchasers is not known.

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