With the proposed merger between Irish betting giant Flutter Entertainment and The Stars Group (TSG) going smoothly, TSG’s Dublin office has been laying off employees in anticipation of its completion. The company’s Cherrywood, Co Dublin office has seen a decline from 330 employees to 260 over the past year, as reported by the Irish Times.
Another group responsible for providing customer service for TSG has been told that their jobs are likely to go. Some have been told that they are being laid off while others will find that their jobs will soon be phased out. Others have been offered alternative positions within the company.
TSG explained that Pokerstars’ operations faced challenges in 2019 which led to cost-cutting measures, regardless of their deal with Flutter. “We believe our proposals will help us to deliver long-term sustainable growth. Dublin remains an important hub for the business.”
While TSG was having a difficult 2019, Flutter was extremely successful last year, recording revenues that topped £2.14b. That was a 14% increase over the previous year and was fueled by an increase of 113% in sports betting revenue to £1.67b.
It is also expected that the company will see dramatic increases this year due to the growing U.S. sports betting market. In 2018, Flutter acquired FanDuel and recorded a £60m operating loss in 2019. However, FanDuel currently controls 40% of the market share in the four states where they are licensed to operate, and that number is expected to greatly increase as more states legalize sports wagering.
The €12 billion merger between Flutter, the owner of Paddy Power, and TSG was recently approved by the Australian Competition and Consumer Commission (ACCC). Executives at Flutter pointed out that the merger still requires approval by the Australian Foreign Investment Review Board, as well as regulatory bodies in Ireland, Great Britain, and the U.S., amongst several others.
Flutter shareholders will receive 54.64 percent of the shares of the combined group while TSG investors will receive 45.36%. Peter Jackson, the chief executive at Flutter, will serve as the CEO of both companies once the merger is completed.
