Flutter Entertainment Making History in the World of Sports Betting and Gambling

The world of online gambling and sports betting is about to get its biggest role player on the globe. This comes as a result of a bid due to be finalized to purchase the Stars Group by Flutter Entertainment. This transaction will be the third-largest of its kind in gambling history at $6 billion and will mean an estimated 20% increase in the value of Flutter’s shares.

Stepping Back In Time

About 30 years ago three gambling operators merged in the Irish city, Dublin. This is how Paddy Power was formed. Since then Paddy Power has grown into a market leader, especially in the UK and Irish markets. During 2016 Paddy Power and Betfair became siblings in the same house under the name Flutter Entertainment. The acquisition of Betfair was priced at $10 billion and is second in line when it comes to large deals within the industry. Recently Flutter increased its market share on US soil when they became the owners of the fantasy sports provider based in New York, FanDuel. Now they are expanding even further with the bid on TSG.

The American Market

Since May 2018, the sports betting and gambling industry in the US achieved a much greater deal of freedom, since legislation from 1992 in the form of PASPA, was changed. Now the American gambling market is open and lucrative, and gambling operators from all over the world want their piece of this very nice pie. Gambling operators from the United Kingdom and Ireland had the freedom to legally operate for decades already and come with a wealth of knowledge and expertise to this new market. Thus explaining the keen interest of Flutter in obtaining a stronger foothold with the US.

A Very Strong Foothold

When the deal is finalized, the newly combined group will serve roughly 13 million users in over 100 countries globally. Their combined worth would stand at $12 billion. Flutter Entertainment will then be the major shareholders for Paddy Power, Fanduel, TSG, Australia’s Sportsbet and Fox Sport which is partnered with TSG as well as Sky Bet. This is by far the most exciting development in the history of both Flutter Entertainment as well as the US sports betting market, according to Peter Jackson, the CEO of Flutter. Currently, the world is also noticing a shift where the US market is opening up more and more with 18 states already offering legalized sports betting. However, in the United Kingdom and countries like Germany, the rules and regulations concerning sports betting are tightening.

Responsible Gambling

Recently Flutter had to pay a hefty fine on the behalf of Paddy Power which was accused of not promoting responsible gambling. This was a case that seems to be fuelled by the case where a problem gambler was convicted of theft to sustain his habit. According to the Flutter group, this is something which they are very strongly committed to. It is expected, that in the future, there will definitely be a strong collective voice from the group, promoting responsible gambling.