The Stars Group has paid US$117.7m for a 62 per cent shareholding in Australian online sportsbook CrownBet.
Having launched in 2014, CrownBet had unaudited annual revenues growing from A$76.5m in 2015 to A$204m in 2017, with unaudited EBITDA turning positive for the first time in 2017 at A$7.9m.
Crown’s intention to sell the stake in its online division was announced back in December, as part of the group’s increased focus on resorts.
"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 interest in CrownBet from Crown Resorts in an all-cash transaction. The Stars Group partnered with the other shareholders of CrownBet, including the management team led by founder and chief executive officer Matthew Tripp, to complete the purchase. Tripp, who will remain in his position and continue to operate the business in Australia.
The Northern Territory Racing Commission has approved the transaction subject to The Stars Group satisfying certain standard conditions.
