An all-share deal has been agreed upon by the owners of PokerStars and Paddy Power Betfair. The new deal will see the creation of the largest online betting and gambling company by revenue in the world, that will be taking advantage of the United States markets.
Paddy Power, now known as Flutter Entertainment, will combine with the Stars Group Inc, the owner of PokerStars, with shareholders of Flutter to own 54.64% of the new company. Shareholders of The Stars Group will own a smaller percentage at 45.36%.
The merger is just one of several deals to take place as of last as the industry makes changes to acclimate to the increasing number of gamblers accessing online gambling. Sports betting growth in the US is also playing a role.
With the news of the merger, the shares of Flutter increased by 15% in early trading. William Hill and GVC also saw a jump as they are considering consolidating as well. With the deal, CEO of Flutter, Peter Jackson, will retain his role. According to Jackson, the deal will provide ‘world-class capabilities’ across several sectors including poker, sports betting and daily fantasy sports.
FOX Sports Deal in the US:
A partnership with FOX Sports in the US will also help the merger, as the new company will be able to acquire 18.5% stake via a FanDuel business of Flutter’s in the US starting from 2021. Flutter merged their United States business with FanDuel in 2018 in a deal that was set to create the largest online business in the nation.