Internet betting giant Betandwin has entered talks with the online gaming company Ongame, over a possible £337 million takeover bid.

If accepted, the takeover would mean Betandwin would become the world's second-largest online gaming company.

The Austria-based firm would take over from the UK's Sportingbet in second place, behind online gaming juggernaut PartyGaming.

Betandwin is nominally a sports betting firm, although its acquisition of Swedish company Ongame would allow it to diversify into online poker and casino games, offering its customers a much broader range of options.

Ongame, which mainly operates the PokerRoom.com website, may well choose to sell up rather than struggle to compete in a market dominated by PartyGaming, although it told the Times there is "no certainty that any final binding agreement on the transaction will be reached"".

Charles Hall