As the online betting market in the US takes flight, Flutter Entertainment (owner of FanDuel) creates its very own online gambling giant by purchasing Stars Group Incorporated (owner of PokerStars) in an approximately $6 billion deal.
Based in Dublin, Flutter Entertainment already has a firm foothold on the UK market through several other bookie brands, such as Betfair and Paddy Power.
This gambling empire (operating walk-in parlors in many of Britain’s cities and shopping centers) offers many different betting media, from sports to US election outcomes.
But foot traffic drastically waned recently, leading Flutter Entertainment (and many of their competitors) to shift their focus toward online and app-based betting portals.
It’s only natural, then, that they would also seek to extend their reach over the Atlantic and “reconquer” the North American continent.
Thanks to favorable rulings by the US Supreme Court, the former colony is ripe for giving UK-based gambling companies fresh pastures and some much-needed breathing space in the wake of tightening regulation in the UK and mainland Europe.
Part of the deal also gives Flutter Entertainment a new connection to Fox Corp (owner of Fox Bet) due to the latter’s minority stake in Toronto-based Stars Group Inc.
It also helps Flutter Entertainment reassert its position in UK gambling, as Stars Group Inc. controls the UK-focused online poker brand Sky Betting & Gambling.
FanDuel and Fox Bet will continue to operate separately, creating some healthy competition in the US market despite the deal.