Betfair reportedly weighing $2.5 billion IPO

[The Buzz]

MarketWatch is reporting that online betting giant Betfair is considering launching a $2.5 billion initial public offering. The IPO could be a platform for consolidation in the sector if U.S. gambling restrictions are lifted.

A floatation would provide the company with capital so it can lead likely consolidation in the gambling sector, the newspaper reported. It added that a lifting of the U.S. ban on online gambling could spark deals in the industry, with some experts suggesting a change in the law could come as early as next year.

[JonOfFinsbury]

This story began with the Sunday Telegraph over the weekend. It had no sources, and Betfair denied it. It's no secret that Betfair are constantly reviewing the IPO situation, but the same could have been said of the company at almost any time over the last few years. I can't see how the situation has moved on - I think it's just journalists coming to a situation they only half understand and running with what they find out.

[Anthony]

Betfair has been moving in that direction. It would be the next logical step.

[JonOfFinsbury]

Oh I don't disagree - there are lots of reasons it would make sense for them. I'm just not convinced that anything has actually happened or that anything can be said now that couldn't have been said a year ago.