Coming to Terms -- Optimal Group subsidiary Optimal Acquisition announced today that it has reached terms with FireOne to acquire the payments processor for £32 million ($63.2 million), or 60 pence per share. An independent committee of the board of FireOne concluded that the sale of the business was the best option to ensure "a certain return to FireOne shareholders" after its mid October withdrawal from the U.S. market.
Harrah's Bidding War Intensifies -- U.S.-based casino operator Penn National Gaming reportedly made a cash bid for Harrah's Entertainment, making it the second bid on the company in a week's time. Sources informed the Las Vegas Review-Journal that Penn was offering $88.50 per Harrah's share, valuing the deal at an estimated $16.5 billion. However, Penn is competing with private equity tandem TPG and Apollo, which, according to The Wall Street Journal, bid $87 per share earlier this week. Harrah's Board has been in New York City this week mulling the bids and is also considering a leveraged recapitalization, in which it would take on considerably more debt, the paper said.
Making the Grade -- British online operator Sportingbet announced today that its current trading is in line with market expectations following the discontinuation of its U.S.-facing operation. The company's European and Australian businesses and non-U.S. Paradise operations are performing well, it said in a prepared statement.
Lotto License Bid Period Extended -- The U.K. National Lottery Commission (NLC) announced yesterday that it had extended the bid period for the third lottery license by two weeks, pushing the deadline to Feb. 9, 2007. The NLC said the decision was made following a request from unnamed, interested parties. "The [NLC] considered the views expressed by all parties very carefully," said Competition Project Board chairman Robert Foster. "This is a short extension and will have minimal effect on the evaluation and transition periods."
Israeli I-Gaming Crackdown -- Israel-based Interlogic, which operates the skill games site Play65.com, was notified by Israeli authorities that its operation of a real-money gambling site for backgammon constituted a criminal offense, reports Haaretz.com. Major General Yohanan Danino, head of the Police Investigations and Intelligence unit, with the backing of the attorney general Menachem Mazuz will head the Interlogic investigation. Danino has also approached credit card companies operating in Israel—Lemmi Card, Visa C.A.L. and Isracard—warning them against continued handling of gambling money deposits. "Cooperation with the companies that operate gambling sites over the Internet, including provision of clearing services to these companies, is a criminal offense with all that this entails," Danino said. The paper reported that backgammon itself, or gambling with virtual money, is not prohibited.