TORONTO, Feb. 27, 2018 /CNW/ - The Stars Group Inc.
(Nasdaq: TSG; TSX: TSGI) announced today that it has acquired
a 62% equity interest in CrownBet Holdings Pty Limited for an
aggregate amount of approximately $117.7
million. Unless otherwise noted, all dollar ($) amounts are
in U.S. dollars.
CrownBet, which launched in 2014 in Australia, the world's second largest
regulated sports betting market, is one of Australia's fastest growing online sportsbooks
with unaudited annual revenues growing from approximately
A$76.5 million in 2015 to
approximately A$204.0 million in 2017
and unaudited EBITDA turning positive for the first time in 2017 at
approximately A$7.9 million for the
year.
"We are excited to enter the regulated Australian sportsbook
market with CrownBet," said Rafi Ashkenazi, Chief Executive Officer
of The Stars Group. "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."
The Stars Group acquired the 62% interest in CrownBet from Crown
Resorts Limited (ASX: CWN) in an all-cash transaction using cash on
The Stars Group's balance sheet. The Stars Group partnered
with the other shareholders of CrownBet, including the CrownBet
management team led by founder and Chief Executive Officer,
Matthew Tripp, to complete the
purchase and will continue to work directly with Mr. Tripp, who
will remain in his position and continue to operate the business in
Australia. Under the transaction agreements, The Stars Group
is also entitled to appoint a majority of the directors on the
board of directors of CrownBet.
The Northern Territory Racing Commission has approved the
transaction subject to The Stars Group satisfying certain standard
conditions.
About The Stars Group
The Stars Group is a leading provider of technology-based
products and services in the global gaming and interactive
entertainment industries. Through its Stars Interactive Group
division, The Stars Group ultimately owns gaming and related
consumer businesses and brands, including PokerStars, PokerStars
Casino, BetStars, Full Tilt, and the PokerStars Players No Limit
Hold'em Championship, European Poker Tour, PokerStars Caribbean
Adventure, Latin American Poker Tour, Asia Pacific Poker Tour,
PokerStars Festival and PokerStars MEGASTACK live poker tour and
event brands. These brands together have millions of registered
customers globally and collectively form the largest poker business
in the world, comprising online poker games and tournaments,
sponsored live poker competitions, marketing arrangements for
branded poker rooms in popular casinos in major cities around the
world, and poker programming and content created for television and
online audiences. The Stars Group, through certain of these brands,
also offers non-poker gaming products, including casino and
sportsbook. The Stars Group, through certain of its subsidiaries,
is licensed or approved to offer, or offers under third party
licenses or approvals, its products and services in various
jurisdictions throughout the world, including in Europe, both within and outside of the
European Union, the Americas and elsewhere. In particular,
PokerStars is the world's most licensed online gaming brand,
holding licenses or related operating approvals in 17
jurisdictions.
Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking statements and
information within the meaning of the Private Securities Litigation
Reform Act of 1995 and applicable securities laws, including,
without limitation, as it relates to The Stars Group's acquisition
of a majority interest in CrownBet Holdings Pty Limited as
referenced herein, as well as certain expectations with respect to
the same and certain future operational and growth plans and
strategies. Forward-looking statements and information can, but may
not always, be identified by the use of words such as "anticipate",
"plan", "continue", "estimate", "expect", "may", "will", "project",
"predict", "potential", "targeting", "intend", "could", "might",
"would", "should", "believe", "objective", "ongoing", "imply",
"assumes", "goal", "likely" and similar references to future
periods or the negatives of these words and expressions. These
statements and information, other than statements of historical
fact, are based on management's current expectations and are
subject to a number of risks, uncertainties, and assumptions,
including risks associated with the transaction referenced herein
and potential future transactions, The Stars Group's ability to
realize expected benefits of the transaction, market and
economic conditions, business prospects or opportunities, future
plans and strategies, projections, technological developments,
anticipated events and trends and regulatory changes that affect
The Stars Group, its subsidiaries, and its and their customers and
industries. Although The Stars Group and management believe the
expectations reflected in such forward-looking statements and
information are reasonable and are based on reasonable assumptions
and estimates as of the date hereof, there can be no assurance that
these assumptions or estimates are accurate or that any of these
expectations will prove accurate. Forward-looking statements and
information are inherently subject to significant business,
regulatory, economic and competitive risks, uncertainties and
contingencies that could cause actual events to differ materially
from those expressed or implied in such statements. Specific risks
and uncertainties include, but are not limited to, those identified
in The Stars Group's annual information form for the year ended
December 31, 2016, including under
the heading "Risk Factors and Uncertainties", and in its
management's discussion and analysis for the three and nine months
ended September 30, 2017, including
under the headings "Risk Factors and Uncertainties", "Limitations
of Key Metrics and Other Data" and "Key Metrics", each available on
SEDAR at www.sedar.com, EDGAR at www.sec.gov and The Stars
Group's website at www.starsgroup.com, and in other filings that
The Stars Group has made and may make with applicable securities
authorities in the future. Investors are cautioned not to put undue
reliance on forward-looking statements or information. Any
forward-looking statement or information speaks only as of the date
hereof, and The Stars Group undertakes no obligation to correct or
update any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by
applicable law.
SOURCE The Stars Group Inc.