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Further industry deals likely following Ladbrokes Coral merger

The recent £2.3billion deal between Ladbrokes and Coral is likely to be the first in a string of mergers in the gaming industry as companies look to pool resources. 

Higher tax and regulation could cause mergers

 Industry experts predict that higher taxes and tougher regulations will push companies to merge to make the most of their assets. “The operators will need to be far more efficient,” Jim Mullen, chief executive at Ladbrokes told The Telegraph. “I think this merger with Coral is probably the start of consolidation in our sector. I wouldn’t be surprised if you see some more.” Indeed, the continued interest in the outcome of 888 and GVC’s bidding war for Bwin.Party makes it clear that mergers are certainly being carefully monitored across the industry. Just last week industry leader William Hill Bingo review admitted profits had slipped after new tax rules on online gambling and gaming machines added a considerable £44million onto the company’s tax bill. However, the merger between Ladbrokes Bingo review and Coral is by no means definitely happening. While both companies are content to go ahead with the merger, it still needs the backing of the shareholders. What may prove more difficult though is gaining the approval of the Competition and Markets Authority (CMA), which has the power to block the deal altogether. It is anticipated that if the proposed merger does go ahead, Ladbrokes Coral (as the new company will be known) will be required to close some of its shops to comply with rules on competition.