Look forward to the future of online gambling!

For fans of online gambling and casinos, there is no denying that there are two major names that are sure to attract customers and interest: Paddy Power and SkyBet. In the world of minimum deposit casinos, these are two major players, and we have some very good news for fans of both: they are set to merge into a single super site! In a move that has the potential to change the face of the online casino world forever, this is very exciting news for casino fans young and old and will open a host of new doors and opportunities.

Who Are Paddy Power?

Ever since its inception in 1988, Paddy Power has held a strong share of the market and established an excellent reputation for its variety of games and sports, bonus spins, deposit bonus deals and more. Founded in Dublin, Ireland, the brand has spread far and wide to become a leading name in the world of online gambling. They are Ireland’s largest telephone betting service, and offer sports betting, online poker, online bingo, online casino, and online games, as well as having a strong physical presence with stores and casinos across the world. In 2016, Paddy Power merged with Betfair, and it seems as though this was just the start of their global domination. They have also connected themselves to Betfair and emerged as the newly branded ‘Flutter.’

Who Are SkyBet

As one of the biggest names on the gambling market, SkyBet is no secret to success. As the name suggests, SkyBet is the sports betting division of Sky Betting and Gaming, and offering online betting through telephone, mobile app, website, and Sky interactive television services. The Apple apps launched in 2011, and the brans have also since grown to encompass the Android market. Unlike many online casinos, SkyBet does not operate a physical high street presence; its services are purely online.

In 2000, BSkyB gained control of Sports Internet Group, and this was the birth of the service as we now understand it. This purchase included a small online sports betting and telephone company known as Surrey Sports, in addition to Opta Index and Planet Football. In 2002, the three companies were merged and rebranded to form SkyBet. In 2006, the company increased again when ukbetting and totalbet were added to the range, following the purchase of 365 Media Group.

Sky Vegas is the primary casino face of SkyBet and is fully licenced and regulated by the Alderney Gambling Control Commission. In 2003, Sky Bet Vegas was formed. and this started with 3 fixed odds casino-style games – ‘Super Keno,’ ‘Juicy Jackpot,’ and ‘Top Spin.’ Since this point, the brand has continued to grow, evolve and develop, with the latest news the next step in its journey.

What Will the Purchase Mean?

In basic terms, the combination will massively increase both the potential profit and overall reach of both companies, allowing them to form a ‘super casino’ which could be a serious threat to other sites on the market. Flutter – the new name for the freshly combined Betfair and Paddy Power – currently have over 6 million active customers, and the Stars Group – also known as Sky Bet – enjoy over 7 million, across more than 100 international markets. When combined, the groups will have an estimated stock market value of around £10.5 billion – figures neither brand could dream of achieving individually. Had the merge occurred in 2018, the new brand would have enjoyed an annual revenue of £3.8 billion, and this is a number only set to continue. In terms of administration and executive control, Jackson is expected to retain the chief executive role, while the current executive of Stars Group, Rafi Ashkenazi is expected to become a chief operating officer. The chairman of the Flutter brand, Gary McGann, will also continue to chair the group.

Why Is the Move Happening?

There are several reasons why SkyBet and Paddy Power may have felt compelled to take this step, and these are predominantly financially based. As we have mentioned the potential earnings for both parties will increase considerably, giving them access to a far larger percentage of the overall stock market. This will lead to a wider combined customer base, as well as larger profits.

In addition, the gambling industry is currently facing stricter regulation and higher taxes across the globe, and this is changing the face of the market. By combining two strong brands into an overall superpower, Paddy Power and SkyBet, the newly formed company will be in a far stronger position to tackle these, as well as allowing them to cut through restrictions and regulations more easily. The amalgamation of two strong sites will also allow both players to have a far stronger place in the market overall.

Who Would Be the Biggest Competitors?

The creation of a superbrand would leave both SkyBet and Paddy Power in a far stronger position right across the market, but there will still be competitive in their way before they can enjoy total domination and control. Major players such as Ladbrokes, Gold’s Gym, Sugar House Casino and more will be in direct competition, and it is important to remember that the competitors of both individual brands will also combine, meaning that there will potentially be more odds stacked against the combined brand.

How Can It Happen?

At present, the combination is only in existence on paper, but the major players in the competition all seem to be firmly on the same page when it comes to the merger. Top analysts at Dublin stockbrokers Davy have stated that “Flutter Entertainment’s proposed acquisition of the Stars Group (TSG) represents a truly transformational deal for both the company and the industry. We see a strong strategic merit to the transaction.” With such a ringing endorsement from a respected source, it seems more than likely that this is already a done deal behind the scenes.

Are There Any Downsides?

Peel Hunt analysts estimate that it could take around 18 months for the merger to complete and did ask those involved to heed caution over the costs which could be incurred in the delivery of the deal. The merger still required approval from regulatory authorities in the UK, Australia, Ireland, Canada, and the US. In addition, there are concerns that this move will reduce the competition of the market; the end result could see the newly formed company enjoying a 38% market share, and some critics argue that this is far too generous and could damage the industry in a negative way.

What Will It Look Like?

The merged casino is likely to be headquartered in Dublin and is expected to enjoy a premium listing on the London Stock Exchange, in addition to a secondary listing on Euronext Dublin. This is a move which could totally transform the modern gambling market and is likely to give players an exciting new prospect to enjoy and explore.