Paddy Power Parent Company Set to Create World’s Largest Online Betting Firm

Flutter Entertainment, which owns Paddy Power and Betfair, is set to take over Canadian-based The Star Group (TSG) with a £10 billion deal. As TSG is the owner of Sky Bet, the merger will result in Flutter Entertainment commanding the largest online betting firm in the world (by revenue).

For perspective, if the takeover had been completed in time, the online gaming group would have pulled £3.8 billion in revenue for 2018.

Flutter Entertainment shareholders are naturally looking forward to the takeover being completed, as they’ll have 55% majority. No wonder investors gave immediate approval for an all-share deal!

And as one of the effects is expected to be a total savings of around £140 million per year, Flutter Entertainment shares are projected to climb to £91.96, a 20% increase.

The stimulus for such a deal happening is the rapidly growing and relatively new sports betting market in the US. For this same reason, it also includes a partnership with Fox Sports, which already has a partnership with TSG.

This means Fox Sports will also get the rights to 18.5% (at market value) of FanDuel starting in 2021. FanDuel was acquired by Flutter Entertainment in 2018.

Flutter Entertainment’s Chief Executive Officer, Peter Jackson, believes the deal will expedite their expansion strategy without threatening their hold as the leading company in Australia, Ireland, and the UK.

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