Online gambling guru TSG has confirmed that it will not flounder at the sight of the Coronavirus outbreak. Hence, it is going ahead with signing its mega money deal with Flutter Entertainment.
The two online gambling gurus are going to be signing a massive $ 12, 2 Billion merger. Even in the sight of what seems like an economic meltdown from the COVID 19 shutdown.
Flutter entertainment is the owner of Paddy Power and FanDuel. On the other hand, TSG is the parent company to PokerStars and SkyBet.
Online Gambling Gurus TSG and Flutter Merger
The online sports betting industry has been majorly affected by the COVID 19 shutdown. Mainly, this is because most major sports games and tournaments have been cancelled.
After getting about 78% of the revenue from sports betting alone in 2019, it will be understandable on why they thought 2020 will be better.
Before the pandemic hit, the company was expecting to cash in from $109 million to $134 million in 2020 as profits. But, this could actually be a setback.
On the other hand, TSG seems to be on the better side of the merger right now. The online casino company rakes in 62 % of their profits from casino games and poker.
Hence the merger between the two online gambling gurus was with the intention of balancing out online casino gaming and sports betting. TSG CEO Rafi Ashkenazi sees it as a setback, but there is still a chance for the sports betting company to redeem itself.
Why the Gambling Gurus Still Need to Merger
Firstly, the online gambling gurus see this as a way of raking in even more profits. Hence, Flutter has taken to acquiring a $1.6 billion loan. In turn, even though it is still getting $124 million, this will help it a cover-up for current loses
Additionally, the merger will actually allow them to dominate the online gambling scene. The merger will allow them to dominate 66% of the online gambling scene in the UK alone.
Hence, this will actually be one of the most powerful mergers in the online gambling industry. Both companies make massive profits in their respective gambling sectors.
Although Flutter seems to be facing a financial hiccup, we expect it to bounce back as soon as everything gets back to normal. TSG can definitely carry some of the weight considering the fact that they will get more when everything gets back to normal.