Competition regulator clears £3.4bn Sky Betting and Gaming acquisition

The Competition and Markets Authority (CMA) has cleared to the merger of Leeds-headquartered Sky Betting & Gaming (SBG) and Canadian gambling The Stars Group Inc.

The £3.4bn ( $4.7bn) acquisition of SBG – which is controlled by Cyan Blue Topco – by Stars, announced in April, will create the world’s largest publicly listed online gaming company.

The decision comes after the CMA announced in July that it has issued an enforcement notice and ordered the firms – Stars, Stars UK and Cyan – to ensure that they were distinct before 10 July.

In April, the chief executive of The Stars Group Inc, which owns PokerStars, an online card room, described the deal to acquire the Leeds-headquartered company as a “landmark moment.”

Rafi Ashkenazi said: “SBG operates one of the world’s fastest growing sportsbooks and is one of the United Kingdom’s leading gaming providers. SBG’s premier sports betting product is the ideal complement to our industry-leading poker platform. The ability to offer two low-cost acquisition channels of this magnitude provides The Stars Group with great growth potential and will significantly increase our ability to create winning moments for our customers.

“Following this transaction, The Stars Group will have significantly enhanced scale and a highly-regarded global brand portfolio. As a result, we are well positioned to realize our vision of becoming the world’s favorite iGaming destination.”

SBG is currently home to the UK’s largest active online player base and, with over 80% of revenues generated from mobile devices, is a leading mobile betting and gaming operator. In partnership with Sky, SBG has developed some of online gaming’s most well-known brands, most notably Sky Bet, Sky Vegas and Sky Casino.

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