PokerStars and Flutter Merge Creating the Largest Company on the Market

Lately, there hasn’t been news bigger than this in the online gaming industry.

PokerStars, the world’s largest online poker cardroom owned by The Stars Group, has a new owner.  This online poker operator based in Canada has been acquired by UK-based Flutter Entertainment.

Flutter Entertainment is a global sports betting, gaming and entertainment provider which has been created by the merger of Paddy Power and Betfair. Flutter also owns online gaming brands such as FanDuel, the TVG Network, and Sportsbet.

A deal like this will make the newly-merged group the largest online gaming entity in the world. These two giants joining forces could potentially be worth nearly $12 billion.

“This is an exciting and transformational combination that will bring together two strong, complementary businesses to create a global leader in the fast-growing online sports betting and gaming industry,” said Gary McGann, chair of Flutter Entertainment.

“The combined group will be a strong voice in the promotion of responsible gaming worldwide and will lead industry standards on the protection of customers, whilst building sustainable relationships with them,” he added.

Last year only, Flutter and Stars collective revenue amounted to $4.7 billion. It is estimated this combined group will have around 4 million active users across more than 100 countries.

FTSE 100-listed Flutter will exercise control of approximately 54.64% of the new company, while Stars Group shareholders will own 45.36% of it.

With the change of ownership, PokerStars will see the leadership of Flutter Entertainment chief executive Peter Jackson, with current TSG chief executive Rafi Ashkenazi assuming the role of a chief operating officer.

Since the Supreme Court legalized sports betting, it has become legal in 11 U.S. states for now. Flutter has been working towards establishing its presence in the US market and with the new merger, they plan on continuing their expansion.