Business Report - Online UK gambling firms' shares soar on prospect of mergers

"London - Shares of UK companies that own online gambling sites had soared this year on speculation of mergers and acquisitions and the profit potential of online poker, said Dresdner Bank analyst Andrew Lee.

The businesses were "hugely cash-generative in an explosive growth market", said Lee. "The market is finally rerating them to reflect their organic and acquisitive growth prospects."

The internet poker market is worth $1.5 billion (R9.3 billion), according to Sportingbet, which in October bought Paradise Poker, the biggest provider of poker sites on the Web, for $297.5 million.

The stock has surged 88 percent since then. Shares of Gaming Corporation, the owner of Playcasino.co.uk, have more than doubled this year."