The merger between the owners of PokerStars and Paddy Power loomed large at the 10th KPMG e-gaming summit attended by 300 of the gambling industry’s movers and shakers.

Expert speakers hastily re-wrote their lines after news broke of the deal less than 24 hours before the event was due to start at the Comis Hotel, Mount Murray.

The Stars Group, owners of Pokerstars, had sponsored the pre-conference drinks event the night before, but perhaps not surprisingly, nobody from the Onchan Head hub turned up.

And Vaughan Lewis, a Stars Group manager, had been scheduled to take part in the first morning panel session, ironically on mergers and acquisitions.

He pulled out because he had to dash off for a flight to New York for important discussions.

KPMG’s Micky Swindale was excited about the planned merger which will create the world’s largest online betting firm. She told Business News: ’It’s great news for the industry because it creates a behemoth and I think that increasingly that is the route being taken by the industry - bigger and bigger.

’But I think it is also good news for the Isle of Man.

’It means that behemoth has an important base here.

’So from our point of view we are very encouraged.’

(In the business world a behemoth is sometimes used to describe a large and powerful organisation).

Pointing out that another huge gambling operation, GVC Holdings, owner of Ladbrokes Coral is headquartered in the island, Mrs Swindale said: ’Suddenly the Isle of Man looks very significant on the world stage.’

Coincidentally,GVC are due to update investors on its third-quarter trading tomorrow (Wednesday).

Mrs Swindale, chief executive of KPMG’s islands group, added that these deals do not come out of nowhere, ’I am quite sure the recent announcements about structural changes that the Stars Group have been looking at were done with this in mind.’

In the conference hall, Simon French of Liverpool-based management advisory firm Bixteth Partners had told the audience the merger was not yet a ’done deal’ and would have to face the views of shareholders and the CMA - the Competition and Markets Authority.

Mrs Swindale said: ’It was interesting to hear Simon French say: ’’Don’t assume this deal will happen’’ because there is a lot to be done to take these deals across the line.

’But the fact they have gone public on this must mean they are pretty confident.’

Mrs Swindale said it was ’extraordinary’ how big events and announcements always seemed to happen round about the time of the KPMG e-gaming summits.

Bill Mummery of Celton Manx, which operates the online gaming brand, SBO Bet, told Business News the merger between the Stars Group and Flutter was a ’massive step forward for the industry.’

He pointed out that Paddy Power once had a presence in the island in Ridgeway Street, Douglas.

’We need to do all that we can to give compelling reasons why they (PokerStars) should not only stay but to grow their presence (in the island).

’Even the due diligence over the size of these acquisitions, the sheer market size will be be looked at very close--ly by the CMA in any event.

’It’s the nature of our industry, change is inevitable. It is how you see that change leads to progress and a benefit rather than a threat.

’Your crystal ball is as good as mine this morning.

’What this really demonstrates is that we in the Isle of Man are home to the best of breed.’

Mr Mummery said an important issue to highlight was the feeling that gaming companies nowadays have to boost their presence in the United States.

Adam Beighton is director of gaming company SportPesa which has an office in Ridgeway Street, Douglas, in the same building that Paddy Power once occupied before leaving the island.

Mr Beighton told Business News: ’In the industry that we are in mergers and acquisitions are going to happen.

And I believe it will take the industry from strength to strength.

’Consolidation is being driven a lot by having to join forces to make sure the regulatory risks are met.’

Mr Beighton added: ’It will be interesting to see how things pan out.

’And I certainly hope that it will be good for the Isle of Man.

’The island is an experienced jurisdiction in the industry and that is key.’

Experienced gaming industry stalwart Garth Kimber, who worked for the government in the e-gaming sector before joining the private sector, was cautious about the tie-up between Flutter and the Stars Group.

He said: ’My personal opinion is that we are a long way short of whether it actually happens or not.

’There is a long, long way before these deals go through to the end.’

Mr Kimber who is chief executive at Xela Holdings, (which operates 138Bet) and TGP Holdings in the island, was once the head of eGaming development with the island’s government.

He said: ’The intent is there obviously but I can’t see that is a done deal.

’I know everybody is talking about whether it is a merger or a buy out but I have not read enough about it to be sure.’

Mr Kimber admitted he was ’not a massive fan of mergers and acquisitions from a consumer point of view’.

He said: ’Mergers and acquisitions reduce the number of players (gaming companies) in the market and then you get to the point where the consumer is getting less choice.’

Simon French from Bixteth Partners told Business News the CMA - the Competition and Markets Authority will ’take a very thorough look at the UK online sports betting market because of that large combined share and what it does for consumer choice.

’Three of the seven top brands in the market will be owned by one company.’

He had earlier told the summit there would be some ’uncertainty’ among the staff of The Stars Group including those at PokerStars.

During a break he told Business News: ’In any merger process clearly when you have said you are going to have £140 million cost savings it is inevitable.’

Mr French stressed however that the merger presented an opportunity for The Stars Group to increase its footprint in the Isle of Man.

’The enlarged business will be headquartered in Dublin and there may indeed be more flights going from the island to the Irish capital.

’The specialism within The Stars Group, as far as I can understand it, in the island, is PokerStars and that won’t change.

’PokerStars has a huge gravitational pull in the island and there are many reasons why the island remains a very valuable headquarters for the poker business.’

Asked if it is good news he said: ’Anything that is investing money into the sector in the island is good news, yes.’