Flutter Entertainment to Merge with The Stars Group to Create the Largest Online Gambling Company Worldwide

Ireland-based bookmaking business Flutter Entertainment plc, which owns the Paddy Power and Betfair brands, announced that it has agreed on an all-share merger with the Canadian online gambling company The Stars Group. The deal will end up creating the biggest online gambling operator by revenue on a global scale.

Today, Flutter Entertainment announced that it would combine its operations with the owner of Poker Stars, Stars Group Inc in a deal which values the two companies at about £10 billion. Once the merger is finalised, the shareholders of the Ireland-based group are set to own approximately 55% in the new entity, while Stars Group’s shareholders will hold the remaining 45% in the company.

The agreement has become the latest one in the series of acquisition and merger deals at the time when the global betting industry responds to the increasing number of gamblers who prefer to go online and gamble by using their smartphone, tablet and other mobile devices.

In addition, the UK gambling market, where many of the largest gambling businesses are based, has become more demanding to gambling companies, with the Government imposing a stricter regulatory regime on the businesses as part of its efforts to tackle the possible negative consequences of gambling. This has pushed British gambling companies to seek expansion elsewhere, with the US being a preferred destination for British gambling firms looking for further growth.

The Merged Group Will Partner with FOX Sports in the US

The current Chief Executive Officer of Flutter Entertainment, Peter Jackson is to remain at his position in the combined group after the merger is finalised. Still, it was announced that the deal would see some major changes in the existing strategy of Flutter. The company plans to offer a great variety of capabilities across gaming, poker, sports betting, daily fantasy sports, etc.

After the deal is finalised, the merged group will retain the Dublin-based headquarters and its main listing on the London Stock Exchange.

As mentioned above, the merged gambling group will become the largest gambling operator on a global scale. In addition, its influence will be boosted by a partnership with FOX Sports in the US, which will be given the opportunity to purchase an 18.5% stake in FanDuel US business from 2021. Back in 2018, Flutter joined forces with the US daily fantasy sports company FanDuel in a deal which was set to create the biggest online entity in the US.

The last few years have seen Flutter Entertainment become more focused on expanding into North America to take advantage of the potentially large US market. At the same time, the company has been facing difficulties due to the higher taxes and stricter regulations in its major British, Irish and Australian markets. Now, the newly-announced deal has come as the latest step towards consolidation in the gambling industry.

  • Author

Olivia Cole

Olivia Cole has worked as a journalist for several years now. Over the last couple of years she has been engaged in writing about a number of industries and has developed an interest for the gambling market in the UK.
Daniel Williams
Casino Guardian covers the latest news and events in the casino industry. Here you can also find extensive guides for roulette, slots, blackjack, video poker, and all live casino games as well as reviews of the most trusted UK online casinos and their mobile casino apps.

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