Timetable for Betfair-Paddy Power Merger Announced
17 January 2016
In the past 24 months, we have seen some absolutely huge acquisitions and mergers in the online gambling world. The biggest one of 2016 could already have a timetable set after an announcement was made on the merger of Paddy Power and Betfair. This merger has been officially given the green light by the Competition and Consumer Protection Commission. Now, they expect the merger to be complete on February 2, 2016.
What This Merger Means
This merger means two things for their stock. First, it means that they will be listed on the Irish Stock Exchange's second list as an overseas company and on the FCA on each of their main markets. However, it also means that the London Stock Exchange and Irish Stock Exchange's securities markets will also have them listed. On January 27, the final dividend for 2015 will also be announced for Paddy Power, and that will close out all of their business for stockholders until after the merger is complete.
Something worth pointing out is that this merger between Betfair and the largest bookmaker in Ireland Paddy Power comes after a number of other huge mergers in the industry. There were so many mergers that a member of Paddy Power's social media team actually sent out a satirical tweet claiming Betfair and Paddy Power were merging without realizing that talks for a merger were actually already in place. That's pretty funny, regardless of what you think of these mergers, and it just goes to show how no one can really know what's going to happen next in this particular industry.
Why So Many Mergers?
People might be wondering why there are so many mergers, and that's a fair enough question to ask. A lot of it has to do with new taxing schemes set up by increased regulation and licensing processes in a number of European countries. In particular, this gives companies a strategic option to buy up other, already-established businesses, in order to be able to use their licenses and their existing distribution for an area. Moreover, profit margins are a bit smaller with the new levels of taxes and more limited access to markets, and that provides an incentive to get more efficient with how businesses are operated, which leads to incentives for big mergers like this one.
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For the past few years, more and more European countries have been setting up regulatory frameworks for online gambling. Getting these frameworks pushed through a gauntlet of political maneuvering is hard enough, and it can lead to some major delays. This has been the case in Ireland for quite some time, but they were finally able to come to an agreement and get things going. Now they have announced their initial batch of two-year licenses to a total of 27 companies.Read full article
29 September 2011Paddy Power Looking for Nevada License
If everything goes as planned in Nevada, there is an online gambling company based in Ireland that is trying to be the first European gaming operator licensed in the state. Paddy Power is looking to get approval from the Nevada gaming regulators for a license as a manufacturer and operator of mobile gaming devices. They already operate online gambling sites in Australia and across Europe. Paddy Power sites has never excepted U.Read full article
07 July 2011Betfair Complains to EU About Germany's Gambling Treaty
A draft over Germany’s gambling rules, which is still being considered by German authorities has Betfair Group Plc, a British online gambling site, already calling foul. According to Betfair, the draft will force it to pay over 16% on all stakes and it will also restrict licenses for private betting companies to seven. According to Betfair these new rules would be “discriminatory and protectionist.” Betfair complained to the European Union this week over this draft proposal.Read full article