Poker Stars and Flutter merge

There’s a new behemoth in the online gambling industry.

The Stars Group, which owns online poker stalwart PokerStars, is merging with Flutter Entertainment in a massive deal worth billions. Flutter Entertainment already made up their own big piece of the online gambling pie, owning Paddy Power, Betfair and Fan Duel.

Why did Poker Stars and Flutter merge?

Under the all-share deal that was announced Tuesday morning, Flutter will envelope the Stars Group gaining control of just under 55 percent of the new company.

Stars Group shareholders will retain the remaining shares of the company which could be worth, according to estimates, up to $13 billion.

The new larger company will still be known as Flutter Entertainment. It will be housed in Dublin, Ireland. Current Flutter CEO Peter Jackson will remain as CEO of the new enlarged Flutter.

Current Flutter CFO Jonathan Hill will also retain his role, while Stars Group CEO Rafi Ashkenazi will become Flutter COO.

The new Flutter will have customers in over 100 countries but a majority of its current revenue, nearly 50 percent comes for the UK and Ireland. The US makes up on a small 5 percent, which trails 15 percent from Australia.

That could change as more states sign on for online gambling, including poker and sports betting, and the growth of PokerStars and FanDuel in the US will be interesting to watch.