Following an investigation, the CMA has cleared the
merger between gambling companies Flutter and
Stars.
The companies are 2 of the main online betting brands in the UK,
with a combined revenue of £1.5 billion. Flutter owns Paddy Power
and Betfair, and Stars owns Sky Bet.
The Competition and Markets Authority (CMA) investigation focused
in particular on whether, as a result of the deal, customers who
choose to place bets online could be offered less favourable
odds, less generous promotions or poorer quality products, for
example, as a result of reduced innovation in pricing or app
experience.
Based on the evidence gathered as part of the investigation, the
CMA has found that online betting companies compete strongly for
customers. There are a number of large and small online
sportsbook operators, in addition to the merging companies, with
whom customers frequently open accounts and to whom they could
easily switch. These companies include the large operators,
bet365, GVC/Ladbrokes Coral and William Hill.
The CMA therefore found that, while the merging companies
complete closely, they are among a number of close competitors,
and the merger will not worsen the offering to people who choose
to bet online.
This is one of several global mergers that the CMA has worked on
recently. It has liaised with other competition authorities
including the US, Germany and Austria who have also cleared the
deal.
For more information, visit the Flutter Entertainment plc / The
Stars Group Inc. merger inquiry case
page.
