News of The Stars Group and Flutter Entertainment’s merger has been raising brows since the two parties first openly discussed the agreement in 2019. The merger is all but concluded, with its approval by the Competition and Markets Authority still pending. The two organizations are excited about the prospect of joining forces to provide a centralized entertainment portfolio for gamblers of all types to enjoy sports betting, poker, slots, various other casino games, and fantasy sports betting.
Coronavirus has put pressure on a lot of land-based casino operators and bookies as social distancing has thinned regular customer crowds out to almost nothing and halted many sports games and tournaments. Fortunately, some have responded to the challenge by innovating their way around and through the obstacles that a global pandemic can put in your path.
Rapid acceleration is an ideal business strategy at times like these where maintaining your company and protecting your investors’ interests are of paramount importance. Flutter Entertainment has adopted this approach by accelerating its “four-pillar strategy”; taking advantage of any new commercial growth opportunities in existing casino markets and making bold moves for massive incursions into the USA market.
Flutter has is focused on achieving this in the most financially viable manner, deciding to mitigate the effects of COVID-19 by suspending all 2020 dividend payments. With the group reporting a downward trend across all its betting products due to the cancellation of many sporting events, they have said that they will still be paying 2019 dividends in the form of normal shares.
Dividends will carry over
Any Pro-rata dividends payable for the period that commenced on January 1st, 2020, will remain on hold until the financial effects of the Coronavirus have been relieved. The expectation now is that all current and future dividends will only be paid in 2021.
The casino group has advised that it is sparing no effort in securing the outstanding permissions necessary for the merger to proceed as planned.