The main Australian competition regulator has informally approved the long-time planned merger of Canadian The Stars Group Incorporated and Irish sports betting operator Flutter Entertainment. According to one report released by The Irish Times news outlet, this important authorization by the Australian Competition and Consumer Commission is a mandatory step before the two entities can merge officially.
As soon as this happens, the two will create the world’s largest sports betting entity with a massive player base of over ten million customers. Also reported by The Irish Times newspaper, the two entities hope to have completed the planned merger sometime in the following months by the end of September. However, for this to happen, the entire arrangement must be approved by the Australian Foreign Investment Review Board as well as a number of other regulatory bodies including the UK’s Competition and Markets Authority.
History of Flutter Entertainment
Formerly Paddy Power Betfair plc, Flutter Entertainment is a prominent bookmaking company that was created by the merger of Betfair and Paddy Power. The company operates under several different brands including FanDuel, TVG, Sportsbet, Paddy Power, and Betfair. It was founded relatively recently back in 2016 when Betfair and its probably biggest rival Paddy Power agreed with all terms for a merger.
Today, the merged business is owned 48% by former shareholders of Betfair and 52% by former shareholders of Paddy Power. Since the merger was completed back in February of 2016, the company started implementing a fully electronic self-exclusion policy through its app. This new system replaced the current process in the United Kingdom. Then in May of 2018, the Paddy Power Betfair company announced that it will be acquiring FanDuel which is one of the biggest sports betting operators in the USA.
As part of this acquisition deal, the company invested 158 million to merge its existing business operations in the USA into its newly-formed FanDuel Group. Speaking of the company’s business acquisitions, it also acquired 51% controlling stakes in a Georgian adjarabet which emerged on the scene in 1998.
Then in March last year, the Paddy Power Betfair company announced that it is rebranding as Flutter Entertainment. The new business form operates separate brands in Italy, Ireland, and the United Kingdom while it operates across different divisions including the United States, Australia, retail and online.
The Stars Group Entertainment’s Business Objectives
Formerly known as Amaya Gaming Group and Rational Group, The Stars Group is a prominent Canadian online gaming company that is currently listed on the Toronto Stock Exchange and Nasdaq. The company was founded in 2001 in Toronto, Canada and today it offers online gaming services and products including sportsbook, casino, and poker through several online divisions.
The company operates several online brands including Full Tilt Poker, BetStars, PokerStars Casino and PokerStars. The firm is also the owner of the MegaStack, PokerStars Festival and PokerStars Championship poker tournaments. With the two companies merging together, the world’s biggest sports betting brand would be formed.
Flutter Entertainment will be handing over its shares worth around $6.95 billion while the company plans to acquire a 54.64% stake of The Stars Group before it proceeds with merging operations with the other entity. For its part, The Stars Group Incorporated is looking forward to new business deals and successful acquisitions which will allow the company’s expansion across other markets.