Last week players at GamblersPalace were notified of the new owners of their accounts and balances. This week a deal was completed where GamblersPalace players are now Bookmaker customers.

This is good news for players as GamblersPalace has been struggling for some time. First came the UIGEA in 2006 which affected the entire industry, then in 2007 a processing company ran off with a huge amount of GamblersPalace’ reserves. Once the U.S. economy went South, so did their business. The deal had been months in the making but was not described by either party as a ‘bailout’.

The former owner of GamblersPalace outlined how hard it is for a small book to make it these days. “Between fraud, smaller margins and the downturn in the U.S. economy, it’s nearly impossible to make it on your own, unless you’re the size of these guys (Bookmaker).” He went on to add that GamblersPalace customers have for the most part been very happy with the change.

We would expect so, as GamblersPalace had been having a few slow pay issues with larger clients for some time. Apparently, several customers did request payouts and as would be expected, they were paid quickly by their new book.

The industry is continuing to consolidate during the global economic downturn. Bookmaker also acquired BetJoint in 2009. This current acquisiton completely clears out one floor of a downtown San Jose office building that was once bustling with wagering clerks, customer service people and lines makers. Gamblers Palace shared 4th floor office space with Sportbet and Island who were recently purchased by 5Dimes.