Gambling merger deal faces UK watchdog investigation
Flutter Entertainment, which owns Betfair and Paddy Power, is being investigated by the UK’s competition watchdog over its planned £10bn merger with Leeds-based Sky Betting and Gaming owner The Stars Group.
Sky Betting & Gaming (SBG) was acquired by Canadian gambling firm Stars for £3.4bn ( $4.7bn) in 2019, a deal which created the world’s largest publicly listed online gaming company.
Now the Government’s Competition and Markets Authority will judge whether Dublin-headquartered Flutter’s proposed merger with Stars will cause a “substantial lessening of competition” within this industry.
A deadline of February 18 has been set for parties to respond to the authority, and an initial decision is due to be made by March 31.
The proposed merger deal will also face further scrutiny from Australian competition watchdogs, as the combination will see Flutter’s market-leading online bookmaker SportsBet AUS merge with the Stars Group’s BetEasy property.
Dublin-based Flutter first said it intended to merge with The Stars Group in October last year. If this goes ahead, it would lead to the world’s largest online betting and gaming operator, with combined annual revenues of £3.8bn.
Flutter would own around 55% of the combined company, while Stars Group shareholders will own the rest.
