Two of the biggest gambling companies in the world have officially agreed to merge. Company officials have confirmed that Paddy Power and PokerStars have joined forces. This PaddyPower-PokerStars merger is the biggest of any online gambling companies in history.
Today, we’re going to look at how this merger came together. We’ll also talk about what these companies will now offer as a team. Let’s get into it!
History of Paddy Power and PokerStars
If you know anything about online gambling, there’s a good chance you’ve heard of both Paddy Power and PokerStars. Both of these companies are extremely popular, with millions of active users around the world. Interestingly, both are very different and offer their members unique forms of gambling.
Paddy Power was founded all the way back in 1988 in Dublin, Ireland. For a decade, the company focused on expanding land-based betting shops around Ireland and eventually, the United Kingdom. Before long, this company began offering online betting platforms. Today, it’s one of the most successful gambling companies in the world.
PokerStars is another extremely popular internet gambling company. This company wasn’t founded in 2001, initially by a Costa Rican company called Regional Enterprises. It immediately began offering services to players in the United States and grew to become the largest online poker company in the world.
The Unlawful Internet Gambling Enforcement Act of 2006 forced PokerStars to leave the US market. Despite this, it’s grown extremely popular in Europe and Asia.
Despite the rise in online gambling competition, both of these companies have continued to bring in massive revenue figures. This week, they’ve officially agreed to merge.
Details of the Paddy Power-PokerStars Merge Come to Fruition?
Paddy Power is no stranger to big merges. Back in 2015, this company famously merged with Betfair. Today, this company is technically called Paddy Power Betfair. This week, Paddy Power has confirmed that it’s joining forces with PokerStars.
Flutter Entertainment, the parent company of Paddy Power, will control 54.64% of this new company. Toronto Stars Group, which owns PokerStars, will own 45.36% of the company. Immediately after the news of this merger was announced, Flutter Entertainment’s stock prices rose by 15%.
The Paddy Power-PokerStars merger is the biggest ever in the history of gambling companies. Together, these companies will have a combined annual revenue of more than $4.6 billion. CEO of Flutter Entertainment Peter Jackson recently commented on the news of this deal to the media.
“We believe the combination of Flutter and TSG will deliver substantial value for shareholders,” he said. “We will have an exceptional portfolio of leading recreational brands and best-in-class products on industry-leading technology platforms.”
Jackson also told the media that this merge will “turbocharge” the company’s plans to expand into new markets. The US, in particular, is becoming a major point of interest for these companies.
Expansion Into the US is Coming Soon
In 2018, the US Supreme Court struck down PASPA. Now, every state in the country can set laws on sports gambling. 19 states have already legalized this form of gambling and many are set to within the next couple of years. As a result, many of the top gambling companies in the world are now interested in breaking into this market.
The Paddy Power-Poker Stars merger now has backing from FOX Sports. The powerful US company will acquire an 18.5% stake in Flutter Entertainment’s US business.
“We’re excited to be able to expand our partnership into FanDuel, which together with FOX Bet, will be a leader in sports wagering in the U.S.,” an official at FOX Corporation told the media.
Several states have also legalized internet casino gambling recently. It’s unclear whether or not the newly merged company will look to offer any online casino games in the US. As more states choose to legalize this industry, this scenario will become more likely.
The Paddy Power-PokerStars merger is the biggest ever made in the history of gambling companies. We’ll need to wait and see how effective this company is at breaking into the United States.
Stay tuned for more updates over the next few weeks!