Rising Share Price of Flutter Entertainment Causes Rumors
Recently updated on July 4th, 2019
The owner of the Paddy Power brand, Flutter Entertainment stated that he didn’t understand the reason for the increased shares. On the other hand, there have been rumors that another business could have an interest in the Irish gambling company. The large outflow in the share price of the behemoth, which has Flutter Entertainment, Betfair and Australia’s Sportsbet in its file, including a growing existence in the United States market was registered. Since August 2015, this has been the most rapid increase in the company’s shares, according to Bloomberg. The shares traded was three times more than the day’s average over the last three months.
Big giants such as William Hill and GVC Holdings also experienced an increase in their share prices at different levels. Immediately after, speculations about a takeover of the gambling group were the ones behind the share price increase. Flutter Entertainment set the record straight and said there was no such thing. There has been no buyer that has shown an interest in discussing a takeover of the Irish gambling company.
Tight Regulatory Rules and Increased Costs
The gambling industry in the United Kingdom and around the world would have to follow a new round of consolidation after a wave of mergers and acquisitions in the sector. Paddy Power joined with Betfair and the brand switched to Flutter Entertainment. This also involved a merger with Ladbrokes and Coral which were taken by GVC Holdings.
Flutter Entertainment has been looking to grow its portfolio by bringing in new brands for a range of gambling options. It bought the Adjarabet in 2019, which was one of the leading gambling operators in Georgia. Peter Jackson, Chief Executive of the Flutter Entertainment, talked about the company’s growth strategy which had to do with purchasing other companies. They are looking particularly at businesses that are huge in the gambling world and around the globe. There are analysts who say that the sector is preparing for consolidation because of the increasing market costs and strict regulations.