High-powered gambling executives and industry aficionados are in agreement: consolidation of internet gambling operations is definitely the way things are heading.

While the idea of rival companies merging is nothing new, it is an interesting strategic move on the part of Austrian Bwin and Gibraltar-based PartyGaming as both can benefit from one another's relative strengths. Bwin is a European powerhouse while PartyGaming has vast experience in online gaming.

First 888, then PartyGaming
When Bwin first launched a major fund-raising initiative, it was 888 that was on top of the lists. 888 is no stranger to merger discussions either. In 2006, Ladbrokes and 888 held merger discussions which broke off in April 2007 after changes to tax laws in the UK and concerns over US legal actions. The London-listed 888 feel out of contention for the Bwin merger.

If the merger between PartyGaming and Bwin comes off, as expected, the super-company will be the biggest internet gambling organization in the world. With all the behind-the-scenes negotiations of late, clarification of this deal is expected soon.

PartyGaming is looking to the future
Bwin is a star performer and is already valued at 1.3 billion euros on the Vienna stock market. The UIGEA knocked PartyGaming out of the park when it was implemented, owing to over 90% of the company's clients coming from America. But this merger will put PartyGaming firmly back on track. When the deal goes through, it will give rise to a £2 billion internet gambling giant and that is certainly nothing to scoff at.