It didn’t take long for the Stars Group to return to the Australian market as it announced an acquisition of 62 percent of Australian sportsbook CrownBet for $117.7 million.
The move comes less than six months after Stars Group-owned PokerStars left the market following Australia’s adoption of gambling laws that did not legalize online poker.
CrownBet, launched in 2014, is one of the country’s largest sportsbooks with unaudited annual revenues growing from around AU$76.5 million in 2015 to A$204 million in 2017, according to a report at Inside Asian Gaming.
Crown Resorts announced last year had entered into a formal agreement to sell its 62 percent stake in CrownBet to a consortium led by CrownBet CEO Matthew Tripp.
The Stars Group said in a press release that it had partnered with the other shareholders of CrownBet, including Tripp, to complete the all-cash purchase and “will continue to work directly with Mr. Tripp, who will remain in his position and continue to operate the business in Australia.”
The Stars Group will now appoint a majority of directors on the CrownBet board.
“We are excited to enter the regulated Australian sportsbook market with CrownBet,” said Rafi Ashkenazi, CEO of The Stars Group in the release. “CrownBet has become one of the fastest growing online sportsbooks in Australia through its strong management team, proprietary technology, mobile app, unique partnerships and market-leading loyalty program.”
The company also said that the acquisition has been approved by the Northern Territory Racing Commission subject to it satisfying certain standard conditions.
