Stars Gains Majority Stake In CrownBet
Australia’s CrownBet has seen a majority stake of the business purchased by the Canadian company The Stars Group. This purchase was made with a cool $117.7 million investment. CrownBet only got its start in 2014 but between then and last year the company has seen its revenues skyrocket, almost tripling in three years.
This is in no small part due to the fact that Australia is the world 2nd biggest regulated sports betting market. With the recent industry shakeups in the country many companies are collapsing or moving their businesses elsewhere but those that remain are cleaning up.
Crown Bet in fact was such an attractive commodity for The Stars Group that the purchase was in cash, directly from the Crown Resort Ltd. While Stars now own a majority stake, CrownBet will still be run by current CEO Matthew Tripp who has been navigating CrownBet through turbulent waters.
Stars will now however be entitled to appoint the majority of the directors on the company’s board which gives them a lot of control. The Northern Territory Racing association has already approved the purchase from their end so it looks like it will be smooth sailing ahead for the Stars Group.
Ladbrokes Racing Sponsorship Under Threat
With the UKGC’s looming crack down on Front of House Betting Terminals, Ladbrokes have released a statement saying that the financial hit they would be taking would seriously hurt their sponsorship ability.
The crackdown on FOHBT intends to limit the maximum possible wager on the machines to £2 where it is currently £100. The industry is saying that there is much more far reaching effects from this reduction than the government is seeing. They say that as many as 4500 betting shops could close if the reduction is implemented.
Additionally it could also potentially hurt the racing industry. Betting shops must pay a £30 000 per year licensing fee to be able to televise horse races. If there are fewer betting shops around it would mean there are fewer licence holders. The industry estimated that as much as £300 million could be wiped out over night for the horse racing industry.
These FOHBT wager limit reductions have been in the news for the last few months and it is hanging like the sword of Damocles over the gaming industry. The government is currently reviewing its options with industry players already presenting their case to MP’s. It now comes down to the MP’s votes and the UKGC’s assessment of the situation.
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