Pokerstars/Flutter Transaction To Set Close on Tuesday

Shareholders of The Stars Group Will Receive 0.2253 Shares of Flutter

Published on May 4th, 2020 10:41 am EST

An industry giant has been created by a merger of two companies.

On Tuesday, May 5th, Pokerstars (trading under The Stars Group) will officially combine with Flutter Entertainment plc.

The result? An online gaming giant, valued in the many billions of dollars, that will have some of the most popular and well-established brands in the poker, sports betting, daily fantasy sports and casino spaces.

The Stars Group, formerly known as Amaya Inc. and the Rational Group, has a number of valuable properties, including Pokerstars (the largest online poker company in the world), Sky Betting + Gaming and Betstars.

Flutter Entertainment, on the other hand, owns brands such as Betfair, Paddy Power, Sportsbet and FanDuel, to name a few.

As you can see, the combination of the two companies will create a mammoth online gaming firm with well-known brands in the poker, casino, sports betting and daily fantasy sports spaces.

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Under the terms of the deal, existing Flutter shareholders will own 54.64% of the combined company, while shareholders of the Stars Group will own the rest.

The combined company will be led by Peter Jackson, who will be the CEO of the merged company.

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Pokerstars/Flutter clearly have their eyes fixed on one market - the United States.

Just 5% of the revenues from the combined company currently come from the United States, though they are obviously hoping that this number soars in the years ahead as the US market continues to open up.

The company is in great position to target the US market, as they own the Pokerstars, FanDuel and Fox Bet brands, plus they have an existing relationship with Fox Sports.

The US market remains the crown jewel for online gaming operators, as the high amount of disposable amount combined with a love for betting creates a very lucrative market. More and more states are legalizing online sports betting (and other forms of online gambling), and Flutter Entertainment is clearly hoping to be a leader in these new markets.

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Filed Under: Online Poker Rooms