Consolidation within the gambling industry has become a leading trend among the industry-involved companies. By joining powers, companies can easily endure unfavorable conditions. Canadian online gambling company The Stars Group (formerly called Amaya) may turn into an important consolidation driver this year. In an interview with Reuters this Monday, Chief Executive Rafael Ashkenazi announced that the company is ready to invest $2.50 billion in acquisition deals. This move came as part of the company’s strategy to further expand its reach into regulated markets.
The total value of mergers and takeovers within the global gambling industry has surged in the recent years. In that way, the industry-involved companies have started to respond to the rapidly growing demand and the regulatory changes. Industry experts project a new wave of consolidation deals. The Stars Group seems to keep its eyes peeled for the latest industry trends and make the most of them. Yesterday, Chief Executive Rafael Ashkenazi commented that The Stars Group is ready to spend billions on acquisition deals. Mr. Ashkenazi explained that the company eyes on expanding at the national level.
A Brief Look at The Stars’ Road from Surviving to Thriving
The Stars Group started to gradually climb out of the hole to see a significant growth in its revenue for Q2 2017. Apart from this, the company managed to melt its huge debt to $515 million, so that it is ready to invest more money in its shopping spree. The Stars preferred to keep under wraps the names of the companies, which will be involved in the process.
Online casino and sports betting acquisitions seem to be a logical next move in the group’s development. Here it is interesting to note that these two divisions registered a high profitability. The company enjoyed a 50.2% gain from its sports betting and online casino in the second quarter of this year. Online poker, on the other hand, which is The Stars’ most developed division witnessed a decrease of 5.9%.
Last week, the company issued a financial report for the third quarter of the year. The company registered sixfold rise and announced that it is to chase a partnership with some of Pennsylvania’s licensed casinos as the state’s officials recently adopted a gambling expansion law.
As it can be recalled, The Stars Group underwent important corporate changes. The company rebranded from Amaya into The Stars Group Inc. and moved its headquarter to Toronto. All the changes came after former Amaya Inc. CEO David Baazov, whose name was involved in a serious insider trading scandal resigned his position in the company. At present, it seems that the company healed the wounds of its past and it started to write a new chapter of its “life”.