AMICABLE END TO BWIN - SPORTINGBET MERGE DISCUSSIONS

6 July 2007

Legal hassled obstruct a promising acquisition

According to statements filed with the London stock exchange authorities today (Wednesday) the acquisition talks between listed online gambling companies Bwin in Austria and Sportingbet in the UK “have now been mutually and amicably discontinued”.

No reasons were given for the failure of the talks, but analysts are already speculating that the pre-UIGEA American business activities of Sportingbet and the potential for legal hassles this might cause might be central. Similar problems plagued the Ladbrokes - 888.com plans earlier in the year, and are thought to be the reason that Party Gaming has embarked on discussions on its position with US Justice authorities recently.

Along with the historical US issues, it is thought that the problems regarding the legal status of online gaming in Turkey had proved to be a stumbling block. Sportingbet remains operating in the country while Bwin announced its departure in March following the passing of laws banning online gaming in the country. Bwin will also no doubt be remembering the losses occasioned by subsidiary Ongame's US pull-out last year.

The failure of the discussions leaves Sportingbet and Bwin as competitors in similar markets.

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