Empire Online Shares Drop Amidst Slowed Growth in Online Casinos

Shares in Empire Online, the marketing firm that drives customers to online casinos and poker sites for companies such as PartyGaming and 888.com, have fallen over twenty percent since news of failed takeover plans hit. Sportingbet announced this month that it had entered talks with regards to a possible takeover offer of 270p a share, which would have valued Empire at £790m.

Since initial talks, takeover negotiations have ceased, reportedly over the complicated contractual agreements between Empire and PartyGaming, which is a huge competitor of Sportingbet. Empire gathers about 67 percent of its revenues from the customers it sends to PartyGaming online casinos and poker sites. It is also believed that PartyGaming has shown interest in a bid for Empire.

Online casinos have been shaken in the past two weeks by PartyGaming's announcement that growth in industry has slowed down. Online casinos 888.com and 32Red.com have both scaled back initial flotation plans. 888.com reduced its valuation in an effort to tempt investors back to the industry. 32Red.com, on the other hand, has ditched plans to gather £10m in new capital.

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