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The Stars Group and Flutter Entertainment have provided much-anticipated industry updates relating to the duo’s proposed merger. Said merger was first agreed to back in 2019 and is still to be approved by the Competition and Markets Authority. The parties remain positive that by combining forces, the new diversified offering will offer to gamblers and bettors a centralised entertainment portfolio catering to their every sports betting, Poker, casino, free-to-play and fantasy sports betting need.
Times are tough for many casino operators and bookies because of the deadly Coronavirus pandemic and industries all over the world are suffering the dire consequences associated with social distancing and national lockdowns. But the parties to the merger are convinced that even a global pandemic is an opportunity to do things in a different and successful way.
Picking Up The Pace
The name of the game is rapid acceleration right now in an attempt to weather the current storm in the best possible way with the least possible measure of disruption to shareholders and other interested parties. Flutter Entertainment hopes to achieve this acceleration by ramping up the delivery of its “four pillar strategy” by making the most not only of new opportunities for commercial growth across existing core casino markets, but also by means of massive further expansion into the United States.
Flutter has in addition to its plans to expand, said that it wants to achieve this in the most financially streamlined way possible, so as to off-set the effects of Covid-19. Flutter has toward achieving this end, announced that it will suspend all 2020 dividend payments. The group has reported a collective slump across all of its betting products across the board due to the cancellation of all sports events and gatherings. It has however said that it will pay its 2019 dividends – but that these will be remunerated in ordinary shares.
Dividends To Carry Over
Pro-rata dividends payable for the period that commenced on January 1st, 2020, will for the moment stand over and remain on hold until such time as what the current financial strain caused by the deadly Coronavirus is relieved. The expectation is that payment of all current and future dividends will only be paid in 2021.
The casino group has in the meantime said that its now working tirelessly toward obtaining the remaining permissions in order for the merger to go ahead as planned.