With a new licensing and tax regime for online gaming in the U.K. changing the online gambling market, one of the country’s biggest online companies—888 Holdings—may be targeted for a buyout.
British private-equity firm Permira is considering a bid on 888 according to sources cited by the Associated Press. The interest was called preliminary.
New online-gambling licensing and tax regulations in the U.K. come online next month require any online site accepting or advertising to British residents to be licensed by the country’s gambling commission. The new rules will also mandate a 15% tax on profits made by companies on bets by U.K. consumers.
The rules may add to site’s tax burden, but are also seen as clearing up investor uncertainty in the industry, according to the AP. Analysts told the news service that clear rules and regulations promote stability and make investment more attractive.
888 is based in Gibraltar, but would still fall under the new rules.
Permira has invested in gaming before, investing in U.K. bingo and casino operator Gala Coral Group.
