As reported by Reuters, The Stars Group currently has cash of about US$255 million and has managed to slash its debt my half a billion dollars within the course of a single year. As a result, it now has the confidence to delve in the international merger and acquisition field and potentially come upon a suitable partner.
Ashkenazi said that his company has already entered merger and acquisition talks with other gambling companies but has not revealed their names. Given the Canadian group’s previous interest in buying major UK bookmaker William Hill, it would not be a surprise if the two companies have renewed their mutual courtship from last fall.
Being the owner of PokerStars, the world’s largest online poker room, online poker is currently The Stars Group’s flagship product. However, the company is also looking to extend its footprint across other industry segments, including online casino and sports betting.
Many believe that the gambling giant will be looking to join forces with companies that have significant sports betting and casino gaming experience.
The UK Government recently confirmed that it would crack down on the highly controversial fixed-odds betting terminals located in betting shops around the country. The changes in FOBTs regulations will occasion huge revenue losses to bookmakers with presence in the UK retail market, and such operators will be the likely participants in the renewed M&A wave as they will be in a great need of stability to survive the heavy regulatory blow.
Source: GMB / Casino News Daily
