The Stars and Flutter Merger has become the talk of the town. This is as it involves BetEasy. BetEasy is one the most common bookmakers in Australia. However, they will soon cease to exist. This is after the £10 billion tie-up between its parent company The Stars Group and Irish gambling powerhouse Flutter Entertainment.
The announced was made just recently and it shows that Flutter has since changed their plans. This is as they had initially wanted to run a dual brand strategy. However, the recent announcement shows that BetEasy will now be replaced by Sportsbet in the Stars and Flutter merger.
The Reason For the Stars and Flutter Merger
Many are wondering why Flutter Entertainment suddenly had a change of plans. The main reason for this was so that Sportsbet may had additional strength. With this strength, they will then be able to tackle their biggest competitor, Tabcorp. Ironically, Tabcorp was also formed by a mega-merger between gambling power houses Tabcorp and Tatts just a few years ago.
BetEasy History
BetEasy was a brand that was hailed in Australia up to 2015. It was at this time that the company was re-branded as CrownBet as it become part of the casino operator Crown Resorts. In 2018, the Stars Group got an 80% stake in Crown bet.
Before the The Stars Group bought major shares in CrownBet, it should be noted that they had also acquired major shares in William Hill Australian business. William Hill being one of the leading online casinos and gambling businesses in Australia. And in 2018, they chose to re-brand their business and came back as BetEasy. Last year, The Stars Groups then bought he remaining 20% to assume the full control over the gambling business.
Stars-Flutter Merger Targets June Completion
The Stars and Flutter merger was made public in October 2019. With the merger Flutter would own at least 54.64% and Stars would hold the remaining 45.36%. The merger between the two mega gambling houses is expected too rake in at least £140 million annually. Additionally, this merger will also be boosted by partnership in the USA with FOX Sports. With this partnership FOX Sports will have the right to 18.5% in Flutters FanDuel business in the USA as of 2021.
Within a few days it is assumed that the major share holders will vote on the mega deal. While in March, the UK Competition and Markets Authority cleared the merger. In February this year, the Australian Competition and Consumer Commission gave informal approval to the deal.
Conclusion
Despite the fact that we are saying goodbye to the BetEasy, the Stars and Flutter merger will give us a stronger and better Sportsbet. As such, while we say goodbye, we can still look forward to a bright future with the TSG and Flutter tie-up and the new and improved Sportsbet.
Stars and Flutter Merger FAQs
[accordiongroup id=”234″][accordion group=”234″ title=”Does this mean that there will be no more BetEasy?” active=”true”]Well, in essence the name will no longer be there. But the company will be taken over by Sportsbet, who are Flutter Entertainments Australia-facing business.[/accordion][accordion group=”234″ title=”What about Flutter and Stars previous plans to run a dual brand strategy?” active=””]The merger between the two companies shows that Flutter Entertainment has had to change their strategy. While they had previously decided to run a dual brand strategy, this will no longer be the case. Moreover, the Stars and Flutter merger clearly shows that BetEasy will be replaced by Sportsbet.[/accordion][accordion group=”234″ title=”Why the sudden change in plans in the Stars and Flutter merger?” active=””]Many assume that the merger will give Sportsbet the strength that they need to and up to its biggest rival in Australia, Tabcorp.[/accordion][accordion group=”234″ title=”What is Tabcorp?” active=””]Tabcorp is one of the major Australian sportsbook companies. It was formed by a merger between gambling houses Tabcorp and Tatts a few years ago.[/accordion][/accordiongroup]