In April, The Stars Group (TSG) announced its plans to acquire Sky Bet (SBG) for a whopping $4.7 billion. Due to the large sum of money being exchanged and the size of both companies involved, the UK Competitions & Markets authority put the deal on hold – but the deal has now been given the go-ahead.
A Good Thing for Customers
Three months after the deal was announced, the CMA issued an enforcement order to freeze the integration process. The authority’s goal was to investigate the acquisition and ensure the deal would not put players at a disadvantage in any way.
After months of looking into the issue, the CMA has decided that the coming together of both companies would be a good thing for customers. The Stars Group will benefit from SkyBet’s global brand portfolio, and be able to offer its products on a larger scale. Since the United Kingdom is the world’s largest regulated sports betting market, The Stars Group’s products will have an increased presence in a country where the local government supports the growth of the online gaming industry.
SBG is also known for its innovative casino and sportsbook products, as well as its wide range of popular mobile apps. Now, The Stars Group will be able to offer these items to its own players, providing them with greater range of high-quality gaming products.
The Stars Group already operates Bet Stars, a popular online sportsbook – but it still doesn’t have the same kind of reach or reputation as Sky Bet. Now Sky Bet is part of the Stars Group, the company will not only have access to its larger player pool but also its innovative technology and gaming platforms that have been responsible for SkyBet’s impressive reputation.
Players are sure to benefit from this acquisition, as they will have access to better technology and more innovative gaming experiences. As such, the CMA was certainly correct in its decision to approve the deal.
Sports Betting Expansion
The acquisition of Sky Bet will also help The Stars Group in the American sports betting market. Now that states have been cleared to legalize wagering on sports, TSG will be one of the more attractive operators.
In states like New Jersey, betting licenses are only offered to local casinos. However, since these venues don’t have experience offering sports betting products to players, they have to team up with other operators that have been in the market for quite some time. With SkyBet’s technology under its belt, The Stars Group will become a popular choice among American casino operators who are looking to team up with an experience sports betting company.