Poker Stars deal to create betting titan
DUBLIN The owner of Paddy Power Betfair has agreed to buy the Toronto-based company behind Poker Stars in a US$6-billion share deal to create the world’s largest online betting and gambling company by revenue, seeking to take advantage of the opening up of U.S. markets.
Dublin-based Flutter Entertainment, formerly known as Paddy Power Betfair, is to combine with Nasdaq- and Toronto-listed Stars Group Inc (TSG), owner of Poker Stars, the firms said Wednesday.
Toronto-listed TSG shares rose more than 30 per cent, while U.S.-listed TSG shares were up 28 per cent in mid-afternoon trading after the deal was announced.
Shares in Flutter jumped 20 per cent, while gambling rivals GVC and William Hill were also lifted by the prospect of further consolidation.
The merger is the latest in a series of deals as the industry responds to the growing number of gamblers using online and mobile devices and the opportunity created by the relaxation of rules on sports betting in the United States.
Combined annual revenues would have totalled US$4.7 billion in 2018, making Flutter-TSG the largest online betting and gaming operator globally, the companies said.
Flutter CEO Peter Jackson, who will retain his role in the combined group, said the deal would “turbocharge” Flutter’s existing strategy and “provide world-class capabilities across sports betting, gaming, daily fantasy sports and poker, as well as greater geographical and product diversification.”
The merged group will have its headquarters in Dublin and its main listing in London.
Reuters