Betfair’s parent company, Flutter Entertainment, is one step closer to successfully completing its proposed merger with The Stars Group, which is a casino operator based in Canada. This week, more than 99% of Flutter’s shareholders voted in favor of the merger, making it official. During the process of voting, it appears that five different resolutions relating to the proposed merger were presented for consideration.
In October of 2017, Flutter and The Stars Group made their initial announcement on their prospective merger. The date of April 24 has been set aside for the purpose of the shareholders of The Stars Group casting their votes regarding the merger. If the deal were to be finally approved on April 24, which is the date that was set aside for the purpose of casting their votes regarding the merger, then the two parties will have inched even closer still to creating one of the world’s largest online casino and sports betting businesses.
Following the completion of the merger, the shareholders of Flutter will collectively possess a 55% stake in the new endeavor. The shareholders of The Stars Group will be entitled to the remaining 45% part of the pie. The merger has been constructed in such a way that this outcome will occur.
Bringing Together Both Resources And Plans
In addition to this, the transaction will result in the combination of two gambling establishments, each of which is significant in its own right. It will be well worth the effort because the united effort will have the backing and patronage of well over 10 million clients all over the world, which is extremely important when considering the current economic condition.
The merging of star-studded casino and sports betting brands will consist of companies such as Paddy Power, PokerStars, Betfair, Sky Betting & Gaming, and a great number of other brands, which obviously suggests quite a prominent and leading combined portfolio in terms of the post-merger corporate offering.
Thanking The U.S.
The gambling industry in the United States is to blame for the conception of the possibility of a merger in the first place. This was the driving force behind the concept. In point of fact, the legalization of the business was the lone spark that had lighted the fire for Flutter, which, by the way, leaped at the opportunity to acquire sports fantasy and betting powerhouse FanDuel the moment it became available. Flutter is credited with being the company that first brought the sector into the mainstream.
The Stars Group, which is based in Canada, has always had the goal of producing greater wealth for its band of shareholders as its primary objective. Many people are concerned about the near future of casino and sports betting brands, and most importantly, their value and continued income, which has been raised as a result of furloughs and even full-on layoffs.
The entities think that they will be better able to negotiate the current financial and regulatory landscape by merging their resources and clients. Additionally, they hope that they will be able to better buffer themselves against the effects of extended periods of slower-than-usual activity by being in a position to better navigate the present terrain. It is hoped that once the current crisis has been resolved, or at the very least brought under control, the industry of sports betting will once again take on its traditional function as the primary source of revenue and an all-around cash cow.
It did not take too many years after the antiquated system that had been in place before to its elimination for the realization of this particular truth to materialize, which is that sports betting is a revenue generator that brings in multiple billions of dollars each year.
There are now only a few obstacles left.
At this point in the game of mergers, it appears that the only obstacle that has to be overcome is getting clearance from the anti-trust law authorities in both Canada and the United States. At this point, the objective is to resolve any and all unresolved problems that exist by the end of the extremely difficult year 2020. It is anticipated that an announcement on the conclusion of the deal will be made somewhere in the neighborhood of the third or fourth quarter of the current year.
Given the current state of affairs, a full-scale casino merger could appear to be an impossible task to accomplish, but in the end, sticking to the plan and not being afraid to put in the effort always pays off in a huge manner.