Aussie Merger -- Australian lottery operator Tattersall's and Unitab, the country's second largest wagering company, announced today a merger which will create a nationwide gaming, wagering and lotteries company with sales above $3 billion (US$2.2 billion). Under the merger plan, which has received approval by the board of directors of both companies, Unitab's shareholders will be given 4.33 Tattersall's shares for each share they own, an offer valued by Bloomberg at around $1.8billion (US$1.27 billion). Tattersall's has also set aside $522million (approx. US$370million) to purchase Unitab shares at A$14 each from shareholders who prefer cash. Both companies are subject to a $15million (US $10.5 million) breakup fee to pull out of the deal.
PokerStars Float -- Online poker room Pokerstars came under intense scrutiny in January when it hired London investment bank NM Rothschild to advise in deciding whether to continue as is, sell or launch an IPO. The topic went quiet after rumors of behind-the-scenes buying offers began to surface, but are back this week amid as-yet-unconfirmed-talks of a London float.
Tote Sale -- The British government has given up on persuading the EC that privatizing the Tote by selling it to a racing trust would not be an abuse of rules on state aid. The chancellor in his budget speech last week included the Tote in a list of state assets to be sold by 2010, raising £30billion. EC officials began investigating the proposed privatization last June after lobbying from British bookmakers, which would like to bid for Tote betting shops. "We are still committed to a sale to a racing trust." a government spokesman said after the budget speech.
Poker Association -- Likening itself to professional sports organizations such as MLB, the NFL, FIFA, NHL and PGA as the sports world’s latest and most needed governing body, the World Poker Association (WPA), a not-for-profit organization incorporated in November 2005 to oversee the world of professional poker tournaments, officially launched today. As the governing body of tournament poker, WPA will establish member-based committees that will incorporate a "One Voice, One Vote" policy for all tournament poker entities. Members will address the critical issues impacting tournament poker today including a code of ethics and a code of conduct, uniform tournament rules and rankings, and players’ rights and benefits. "It is my dream that one day tournament poker will command the respect, participation and sponsorship that other sports have attained," said professional poker player and WPA Founder Jesse Jones. "With player and industry support, I know tournament poker will find its rightful home in the major leagues."
Spread Betting Down Under -- Victorian Supreme Court Justice Bernard Bongiorno Friday declared UK-based spread betting firm IG Index Australia's spread betting products as legal, citing the financial services license provided by the Australian Securities and Investments Commission authorizes the company to operate its business in accordance with the Commonwealth Corporations Act.