After much industry speculation Party Gaming and BWIN officially announced today that they will merge. In what is being described as a reverse takeover Party Gaming shareholders will hold 48.4% of the new company and BWIN shareholders will hold 51.6% of the new company. The company will continue to be traded on the London Stock Exchange. If approved by regulators and shareholders the combined company would become the largest online gaming company in the world. Both BWIN and Party Gaming shares closed up 21% after trading as high as 30% above Wednesday's closing price.

This announcement comes just a day after a major victory for online gaming companies in the U.S. when the House Finance Committee approved a bill that would legalize and regulate most online gaming in the U.S. Being the largest online gaming company in the world should put this newly formed company in a great position should this new bill become law in the U.S.

So what is in the cards for the new company? Will Party Gaming move their poker players to Ongame? Will all of Ongame move to the Party platform? What about all of the casino and side games offered? Where do those offerings fit in? Only time will tell. Make sure to check back for updates on this breaking story.