|Online gambling groups Partygaming and 888 Holdings are in talks about a possible merger according to reports.|
The Gibraltar-based firms are two of the biggest victims of the Unlawful Internet Gambling Enforcement Act (UIGEA) which effectively makes internet gambling illegal.
PartyGaming has since pulled out of the U.S., but Chief Executive Mitch Garber has said the changes are, ' a golden consolidation opportunity for Partygaming'.
The Sunday Times reported executives from the two companies - which would have a joint market capitalisation of almost 1.6 billion pounds ($3 billion) - expected to hold further talks in coming weeks as gaming firms consider options to combine their online pool of players.
PartyGaming has declined to comment on the report. 888 was not immediately available for comment.