£10 billion betting giant is born after merger of Flutter and The Stars Group
Punters woke up to a new landscape on Tuesday morning with the birth of a global betting giant worth more than £10billion.
The merger of Flutter, the owner of Paddy Power and Betfair, and The Stars Group, a Canadian-based online betting and gaming group which bought Sky Bet in 2018, was first proposed last October and was given the all clear by the Competition and Markets Authority in March.
The combined group's annual revenue would have been £3.8bn in 2018, making it the largest online betting and gaming operator globally.
Shareholders in both companies voted in favour of the deal, which was completed at 8.00am on Tuesday.
Flutter and Stars hope the deal will save £140m in costs and they have targeted the US as an area for expansion amid tighter regulations in the UK.
When announcing the imminent completion of the deal, Flutter group chief executive Peter Jackson said: "The enlarged group brings together exceptional brands, products and businesses, a hugely talented and experienced team, and a diverse global presence. The strength of our combined portfolio of assets means that we approach the future with confidence in these uncertain times.
"Both businesses have a strong legacy of leadership when it comes to responsible gambling. As a combination, we are determined to deliver on our commitment to drive a race to the top when it comes to responsible gambling best practice across the sector."
Flutter have more than six million active customers and The Stars Group more than seven million across more than 100 international markets.
The merger is the latest example of the trend towards greater consolidation in the gambling industry as companies face stricter regulation and higher taxes.
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