AU gamblers who love to bet on sports will be shocked to hear that The Stars Group increased their stakes in CrownBet to 80%. They raised their stakes on the sports betting market in Australia from 62% to 80%. The Stars Group spent AU$150 million to buy a 62% stake in CrownBet from Crown Resorts.
The Stars Group Increase its Stake
The Group is a Canadian company well-known for their online gambling sites. However, as of last month, February 2018, the company started its venture to the Australian gambling industry. They decided to buy 62% of CrownBet but has now raised their ownership to 80%. The company announced their transfer to the Toronto stock exchange after CrownBet became the leading bidder for a major competitor, William Hill Australia.
The Stars Group owns the PokerStars online poker site and has a total of 115 million players across the world. They revealed that the price of its CrownBet possession increase and the William Hill contract is estimated at roughly AU$400 million.
The Stars Group’s Investment
This was a huge investment from the Group as they aggressively decided to move into the competitive Australian online betting industry. This move balances with the retreat of William Hill. However, William Hill disposed of its Australian business, which excited the market, citing an inability to cope with a wave of tough new laws regulated to decrease problem gambling.
CrownBet expects to cement its position as the third biggest provider, after Sportsbet and Tabcorp, in Australia and double its market share in online sports betting.
The Stars Group Comments
The Chief Executive Officer of The Stars Group, Rafi Ashkenazi stated that: “These acquisitions will further increase our exposure to the attractive regulated Australian sportsbook market and create a player of scale and a clear rival to the top two operators there.”