TWO of the world’s biggest internet gambling companies are considering initial public offerings (IPOs) in London, the larger of which could go straight into the blue-chip FTSE 100 index.

Both companies — iGlobalMedia and Cassava Enterprises — are based in the same building in Gibraltar, but there is no connection between them. They have, however, previously held informal merger talks.

IGlobalMedia, which is best known for its PartyPoker website, is controlled by a small number of private shareholders, including Ruth Parasol, its head of international business development. The company is estimated to achieve earnings before interest, tax, depreciation and amortisation (Ebitda) of about $350 million (£190 million).

Given the company’s rapid rate of growth, it should be able to command a valutaion of well over £2 billion in an IPO, giving it automatic entry to the FTSE 100. The appointment during the summer of Richard Segal, the former Odeon Cinemas boss, as chief executive has heightened speculation of an IPO.

Vikrant Bhargava, iGlobalMedia’s director of marketing, said: “We’re always talking to various people about various things, but we haven’t appointed any advisers. But if we were to float in London there is a good chance that we would be a FTSE (100) company.”

Cassava, whose 888.com website sponsors Middlesbrough football club, is headed by John Anderson, who also runs Burford, the property firm. The company, which has Ebitda of between $80 million and $100 million, is controlled by two pairs of Israeli brothers. The majority shareholders are the Shaked brothers.

Mr Anderson last night said: “We are looking at our options, but we haven’t appointed advisers.

“Nothing’s firm at all, although (an IPO) is something we’re considering. If we do it, it would take six to nine months.”

Analysts said that a London listing would add to the credibility of such companies, helping them to attract new punters. Andrew Burnett, gaming analyst for Numis Securities, said: “The industry is still growing at a fantastic rate.”

The biggest existing quoted operator is Sportingbet, which is close to acquiring Paradisepoker.com, for about £170 million.

LONDON CLUBS INTERNATIONAL WOULD WIN FROM TAX CHANGE

LONDON Clubs International (LCI), whose casinos include Les Ambassadeurs and the Golden Nugget, would be the biggest winner among the UK’s existing operators if the Gambling Bill is accompanied by a cut in gaming tax to less than 20 per cent.

Although the Treasury has given no guidance on the new rate of tax, the Department for Culture, Media and Sport is said to have hinted at a tax on gross profits of 15 to 20 per cent. This would replace a banded duty regime of between 2.5 per cent and 40 per cent of the gross gaming yield.

The amount casinos currently pay is based on the size of the gaming yield, such that the biggest casinos, mainly those in London, pay most. LCI is the biggest operator in the capital with five clubs. The company is currently believed to pay about £35 million in UK duty.

Greg Feehely, an analyst for Altium Securities, reckons a tax rate of 20 per cent would cut that bill by £11 million, while a 15 per cent rate would mean a £15 million reduction.

The impact on Rank and Stanley Leisure would be broadly neutral.

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