The Stars Group acquires major chunk of Crownbet

The Stars Group has acquired a 62 percent equity interest in CrownBet Holdings Pty Limited from Crown Resorts Limited for an aggregate amount of around US$117.7 million in cash.

CrownBet launched its online sports betting operations in Australia in 2014, growing its revenues from 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 around 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 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, the company revealed. Tripp 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, and the Northern Territory Racing Commission has reportedly approved the transaction subject to The Stars Group satisfying certain standard conditions.

In related news, CrownBet is tipped to be one of four bidders for William Hill’s Australian business.