The Stars Group and Flutter Entertainment got the sports betting industry talking when they announced last week that they have agreed to become partners and will merge into one company. There have been rumors of this happening over the last year, but the news was still extremely shocking when it was finally announced last week.
These two companies announced that they will be merging to form a new online gambling company, and they will likely have very few rivals on the market. Both the Stars Group and Flutter Entertainment were already two of the biggest online gambling sites out there, and they are going to be forming a company so large that it won’t be challenged.
The reason for this merger is quite simple: These two companies wanted to completely monopolize the sports betting industry, and create a company that won’t have any rivals. The Stars Group and Flutter Entertainment have not announced a new name yet for this company, but more information is expected to be available very soon.
Flutter Entertainment is expected to take over The Stars Group, and so it is possible that Flutter would be able to retain its name and just become an even bigger company.
Lots Of Smaller Companies Included
Both the Stars Group and Flutter Entertainment become sports betting giants by swallowing up other smaller companies, and they both have plenty of other companies under them. Trying to combine all of these companies into one could make things extremely difficult, but it appears that almost off of those details have already been worked out.
Flutter CEO Peter Jackson is expected to be the man in charge of this new company, but the Stars Group will get to keep some of its power positions as well.
Flutter Entertainment acquired FanDuel in a deal last May, and they will bring that sports betting giant into this merger as well. This company was originally formed when Betfair and Paddy Power combined to join forces.
The Stars Group is most famously known as the owner of PokerStars, but they have also previously bought Sky Betting and Gaming. There will certainly be plenty of questions surrounding the merging and handling of all of these sports betting giants.
Both of these companies are using this merger as a way to break into the market in the United States, but they make a large percentage of their money overseas. By partnering up, it appears that these two companies will have deals in place with a handful of the major professional sports leagues in the United States.
The Stars Group also has a deal with Fox Sports that should help this new company find a way to get into the mainstream media.
Flutter Entertainment is hoping that this new merger will help it regain a foothold in the online gambling and poker industry. PokerStars is one of the most popular websites on the market, and that should help out Flutter. The Stars Group has needed some help in getting a sportsbook app up and running, and that is where Flutter can help them out.