Flutter Tries to Merge Its Luck
“The house always wins,” they say. We’ll see about that! Flutter, an enormous gambling house based in Dublin, is goading on American rivals as it seals a mega-merger to help it eat their lunch in the booming sports betting market.
Investors in Flutter will siphon off 50% more from their company next year, thanks to a shoo-in merger between it and The Stars Group (TSG). Flutter will bring Paddy Power and Betfair to the table, while TSG will bring Stars Poker. The united gambling and betting giant will be worth $6 billion, and investors hope those brands will form a winning hand as it chases a massive jackpot.
For Flutter, America truly is a land of opportunity. Since the Federal government gave everyday Americans the green light to gamble on sports games, the race to meet that demand has been fierce. $150 billion in illegal betting is suddenly legal, according to the American Gaming Association. Now, Flutter’s entrance is a strong statement to US incumbents like Wynn Resorts, Caesars Entertainment, MGM Resorts, and DraftKings. The Irish are in town, and they want a share of the pie!
However, despite huge gains this week for investors on both sides of the merger, it isn’t a sure bet over the long-term. The gambling industry is under constant scrutiny. Outside of the red-tape-free zones like Vegas and Macau, gambling epidemics are to be afraid of, and regulation remains tight. Flutter will have to keep its fingers crossed that gaming stays game in markets like Russia and Germany, where laws are still a work in progress. Investors, are you feeling lucky?