Global poker giant The Stars Group Inc has continued its aggressive push into the sports betting market after completing the acquisition of the UK’s Sky Betting & Gaming (SBG).
The acquisition comes just three months after the company secured an 80% stake in former Crown Resorts subsidiary CrownBet Holdings Pty Limited in Australia, through which it subsequently purchased another Australian sportsbook operator, William Hill Australia Holdings Pty Ltd – positioning itself as a clear number three in Australia’s highly competitive online sports betting landscape behind Tabcorp and Sportsbet.
The SBG acquisition is seen as another strategic move in enhancing the company’s global profile and broadening its offerings.
“This acquisition represents a pivotal moment in The Stars Group’s evolution,” said CEO Rafi Ashkenazi.
“SBG’s mobile-focused sportsbook pairs well with our industry-leading poker offering to create two premier customer acquisition channels. We believe this combination along with our combined online casino offerings positions The Stars Group for continued growth in the evolving online gaming industry.”
According to The Stars Group, acquiring Sky Betting & Gaming will dramatically improve its revenue diversity, “creating a balanced spread across poker, casino and sportsbook with a broad geographic reach.”
It also increases The Stars Group’s presence in locally regulated or taxed markets to approximately 75% of combined revenues, develops sports betting as a second customer acquisition channel – creating an opportunity to cross-sell players across multiple verticals – and enhances The Stars Group’s products and technology through the addition of SBG’s sportsbook and casino offerings and portfolio of popular mobile apps.
“This transaction creates the world’s largest publicly listed online gaming company and unites two iconic brand portfolios with strong technology platforms and teams. This significant scale also positions The Stars Group to both secure and expand upon its global footprint,” Ashkenazi said.
The Stars Group paid a total of US$4.7 billion for SBG.
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