Stars Group Purchases Stake in Australia's CrownBet

Published Friday, March 02, 2018 - Online-Casinos.com
Stars Group Purchases Stake in Australia's CrownBet

The internet gambling industry has been changing rapidly over the last few years with many takeovers and sales of major firms located all over the planet. A recent news article about the sale of Australian gaming group Crown Resorts reveals the transitory nature of the business. Back in the beginning of the year it was announced that the firm had agreed to sell its majority stake in online gaming site CrownBet. It was reported that William Hill was in advanced talks to acquire the 62% stake of CrownBet by a group of investors including the site’s chief executive, Matthew Tripp.

Crown Resorts sold land in Las Vegas where it had planned to build a casino to Wynn Resorts for A$385m and it planned to divest a stake in gaming giant Caesars Entertainment Corporation and real estate within its luxury Sydney development in order to recoup around A$700m by selling assets.

Now however Canadian located The Stars Group has announced it has purchased the 62% stake in Australia’s CrownBet Holdings for an aggregate amount of approximately US$117.7 (€96.2m). The company revealed it acquired the online sports book from Crown Resorts Limited in an all-cash transaction using cash available on its balance sheet.

The Stars Group has partnered with other shareholders of CrownBet, including its management team led by founder and chief executive Matthew Tripp enabling this major purchase. Stars Group has the right to appoint a majority of the directors to the board at CrownBet but will retain Tripp as CEO of the company in the Australian jurisdiction.

The acquisition has been approved by the country’s Northern Territory Racing Commission subject to the Stars Group complying with the necessary rules. Chief executive officer of The Stars Group, Rafi Ashkenazi said: “CrownBet has become one of the fastest growing online sports books in Australia through its strong management team, proprietary technology, mobile app, unique partnerships and market-leading loyalty program.”

 

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