Paddy Power and Betfair owner acquires The Stars Group to create online gambling giant
The big news came out on October 2, 2019: Flutter Entertainment – which owns Paddy Power and Betfair – has agreed a $6 billion all-share deal to buy The Stars Group, the owner of PokerStars.
Under the deal, Flutter shareholders would own 54.6% and Star Group shareholders would have 45.4% of the combined firm.
The Stars Group Inc. owns several poker, casino and sportsbook brands: PokerStars, PokerStars Casino, BetStars and Full Tilt Poker.
The two companies claim that the merger will create the world’s largest online betting and gaming operator. The combined firm’s annual revenue would have been $4.7 billion in 2018.
The US market will be a big focus for the new group, after the US Supreme Court cleared the way for states to legalize sports betting. The company management also plans to further expand the product line and a geography of presence.
Stock price (GBP) of Flutter Entertainment after the merger announcement
Stars Group Chief Executive Rafi Ashkenazi reacted positively to the deal: “This exciting combination will allow us to enhance and accelerate our existing strategy, to position us strongly for the future in this rapidly evolving industry.”
The online gambling world froze in anticipation of upcoming changes. Indeed, PokerStars for many is not just a commercial brand, but a part of their life. And such big news are always perceived with particular emotion.
In the turbulent world of gambling, there is no constant thing: mergers and acquisitions are taking place, ambitious startups are replacing well-known companies. Only one thing remains the same: no matter where you play – at the largest betting exchange, a reputable sportsbook or the world’s most popular poker website – the best payment solution is Skrill or NETELLER.