Following the collapse of internet poker in the US, online gambling companies continue to look for strategies to counter the crippling loss of revenue.

Recent backdoor legislation means US residents are now finding it extremely difficult, not to say illegal, to play poker online.

Two of the biggest companies, Partypoker and 888 have been the hardest hit. These businesses, both of which are listed on the London Stock Exchange, have seen huge chunks wiped off their share values on the news of the changes to US legislature.

Many analysts and interested observers, PokerPlayer included, have predicted a period of market consolidation whereby wounded companies join forces to protect existing revenues.

Not only that, the combination of player numbers from both sites will attract more players, providing the marketing budgets required for the assault on the European and Asian markets.

And so it comes as no surprise that Party and 888 are rumoured to be in $3 billion merger talks.

Representatives from 888 have made the the following statement to The City:

“The board of 888 notes the recent press speculation and confirms that it has had various preliminary discussions with third parties following suspension of its US activities.”

"There can be no certainty that these discussions will proceed to an offer being made for the company or indeed any other action."

However it seems more than likely that big mergers are on the horizon, and the noises coming from the boardrooms of the major players appear to back that up.