Shares in online gaming firms have slumped since the US changes

Weekend media reports said it was talking with rival Partygaming, but 888 did not identify which companies it had held "preliminary discussions".

The two firms are among the biggest victims of US law changes - effectively criminalising internet gambling.

888 said there was no certainty its talks would lead to any deals.

The Sunday Times had reported that Partygaming and 888 would hold further talks in coming weeks about a �1.6bn ($3bn) merger.

"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," the firm said.

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

Partygaming declined to comment on the reports.

Costly decision

Experts have predicted there will be a round of consolidation in the sector following new moves which will make it impossible for Partygaming and a clutch of other British online betting businesses to collect revenues in the US.

Analysts now expect companies to switch their focus from the huge US market to concentrate more on Europe and Asia.

Earlier this month, Partygaming said its decision to exit the US market in the wake of the new legislation would cost it about $250m (�133m).

The company had generated around 75% of its income from the US market while around half of 888 Holding's business came from the country.