The owner of FanDuel, Flutter Entertainment PLC, has set a goal to create the world’s largest online gaming company by buying the owner of PokerStars, the Stars Group.
This deal seems to be an amazing calculation from Flutter Entertainment, due to the raving popularity of online casinos and internet sports betting across the US. The agreed price for the transaction alone is $6 billion, but the total worth of the created online gaming kingdom is speculated to be around $12 billion.
Flutter Entertainment and the Stars Group Rule in Their Area of Expertise
In case you are wondering who is setting the standards in sports betting in the U.K., Flutter Entertainment is the one to look at. The company based in Dublin is the owner of multiple well-known bookmakers, including FanDuel, Sky Bet, Betfair, and Paddy Power, all of which have spread around Britain, filling up shopping streets of every city.
They have been covering all types of sports betting, horse and dog racing, and more. However, with the development of technology, these brands had to move to the online world to beat the competition. FanDuel, in particular, has jumped to the U.S. market with the hope to move their game to the next level.
On the other hand, Toronto-based the Stars Group owns some of the most popular online gaming portals, one of them being PokerStars.
In May, the Stars Group added back-up to their forward line by signing a deal with Fox Sports, with an idea to bring sports betting closer to American customers. This move was perhaps the first step the Stars Group made when it comes to spreading their wings toward new achievements.
Flutter-Stars Merger Scares the Competition
As we’ve come to know, the deal between the two giants has for months been on the mind of Peter Jackson, the CEO of Flutter Entertainment, who will stay on that position in the joint company as well. The CEO of the Stars Group, Rafi Ashkenazi, will act as COO of their new company. This kingdom of online games and sports betting will have a 14-member board of directors, including both Jackson and Ashkenazi.
What this merger will create is the world’s biggest online gambling platform. Apparently, both former companies did well on their own, but are more than excited to join forces and create something extraordinary.
“This exciting combination will allow us to enhance and accelerate our existing strategy. In recent years, we have transformed TSG from a single product operator in poker to a diverse global leader with multiple product offerings across poker, gaming, and sports betting. The combination with Flutter will further enhance our company’s core strengths, and position us strongly for the future in this rapidly evolving industry.”
Rafi Ashkenazi, the CEO of The Stars Group
It is also important to mention the financial boom that this merger will bring along. By joining forces, Flutter Entertainment and the Stars Group will be worth around $12 billion and continue to grow if everything goes according to plan.
The deal specifies that Flutter Entertainment will own 55% of the shares, while the rest will belong to the Stars Group. Since the new company will be taking over almost half of the market, it won’t come as a surprise if they face some difficulties before they officially become untouchable.
In fact, this new mega-company will have to regulate the operation of its smaller units since some of them have the same purpose. For example, it is planned that the FanDuel and Fox Bet operate separately since they target different types of customers.
The FanDuel will deal with hard-core sports fanatics, while Fox Bet will focus on more casual players who are looking for some fun activities in their free time. Anyway, the market is huge, and everyone can benefit if they target the right audience.
In conclusion, people around Jackson and Ashkenazi trust their leaders’ decisions and believe this project is the next logical step in the future of business evolution. Every market has a leader, and now online gambling and sports betting are expected to officially get theirs by Q3 next year.
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Bethany has been working in online gambling for over 13 years. She got her start in the industry as her first job after graduating from the Professional Writing Program at York University. Having written for many online gaming publications and worked with top casino operators, she has unique insight into the gambling market. Bethany maintains a personal interest in iGaming as she continues to play poker online as a hobby.