Flutter and Stars to Merge
by Glenn Baird - March 31, 2020
The Competition and Markets Authority (CMA) have given the go-ahead on a merger between gambling companies Flutter and Stars.
Flutter owns Paddy Power and Betfair, and Stars owns Sky Bet. The merger will see the separate companies combine into one of the largest betting firms in the UK, with a combined revenue of £1.5 billion.
One major concern that was investigated prior to the announcement was a fear that consumers with existing accounts might be offered poorer odds, weaker promotions or products that were not up to standard.
However the investigation found that competition between existing gambling firms, such as Bet365 and William Hill would ensure that consumers had enough choice to switch to another operator, something that should ensure the new company remains competitive.
The CMA then concluded that the merger would not leave consumers worse of and as a result decided to give the merger the green light.
As part of the investigation the CMA liaised with other competition authorities in the US, Germany and Austria.
Details of the investigation can he found here.