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BUZZ-British online betting co's: Dealt a bad hand on Betfair-Paddy Power deal

Reuters - UK Focus

** Possible Betfair-Paddy Power (LSE: PAP.L - news) 5 bln stg merger a bad bet for rivals

** Merger could create one of the world's largest online betting and gaming groups with estimated revenue of over 1.1 bln stg

** William Hill (Other OTC: WIMHF - news) and Ladbrokes (LSE: LAD.L - news) both down more than 5 pct; worst performers on the FTSE 250 Index

** Playtech (LSE: PTEC.L - news) falls 2 pct while Bwin.party down 1.4 pct

** Betfair and Paddy Power only gambling cos in the green on the STOXX Europe 600 Travel and Leisure index

** Possible merger marks the latest in a string of possible tie-ups across the sector

** Last month bookmakers Ladbrokes and Gala Coral sealed an all-share merger, while 888 and GVC are in a bidding war for online gambling firm Bwin.party (Reuters Messaging: noor.hussain.thomsonreuters.com@reuters.net)