Talks ongoing between Bwin and PartyGaming

Austrian betting firm Bwin are in talks with UK baes casino rival PartyGaming about a possible deal that could create a £2 billion gaming monster. A source close to the deal told the Sunday Times: "Everyone in the industry is talking to everybody else.”

PartyGaming has a market value of more than £1bn, while Bwin, which is listed on the Vienna stock exchange and is valued at an estimated £1.2bn. PartyGaming earlier this year also hailed the performance of its casino operations, which include PartyCasino and FoxyBingo.

This helped release pressure on its PartyPoker division, after strong competition left poker earnings 29% lower.

PartyGaming reported a bottom-line loss of £41m due to payments associated with a non-prosecution agreement with US authorities.