Stars Group, the Canadian based parent company of PokerStars, is now the majority owner of the Australian sports betting company CrownBet. The deal was sealed yesterday when Stars Group announced that it had purchased 62 percent of CrownBet Holdings Pty Ltd for $117 million (USD).
CrownBet’s parent company, Crown Resorts has been in the process of shedding assets that weren’t land-based for a while now and this deal was part of that larger strategy. CrownBet is, by all accounts, a very healthy asset for Crown Resorts and, according to CalvinAyre.com, had recently begun showing a healthy profit. Last year CrownBet turned in revenue of $204 million, that’s up from $76.5 million in 2015. In 2017, the company turned a profit of $7.9 million.
Rafi Ashkenazi, Chief Executive Officer of The Stars Group commented on the acquisition saying:
We are excited to enter the regulated Australian sportsbook market with CrownBet. 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.
CrownBet’s journey from startup to satellite in the Stars Group empire has taken a few interesting twists and turns. It was launched as Betzy/BetEasy by Matthew Tripp, who also founded the Australian sports betting giant SportsBet. Tripp merged his operation with Crown in 2015 and the group’s have worked amicably ever since.
Tripp will continue in his role as CrownBet CEO while the Stars Group will acquire the authority to appoint a Board of Directors.
The CrownBet/Stars Group deal has already been approved by the Northern Territory Racing Commission.