CrownBet Set to Rebrand Following Takeover
CrownBet, one of the most popular betting platforms in Australia, is looking at a possible rebrand. The brand has recently been involved in mergers and acquisitions from both ends, and its most recent acquisition may explain the surprising decision.
Mergers and Acquisitions
CrownBet was recently acquired by The Stars Group, a Canadian gambling company and gambling giant, which has plans to expand its gambling business. Most notably, The Stars Group also acquired British betting company Sky Betting & Gaming. Initially, The Stars Group placed a bid to acquire 62 percent of CrownBet’s business. Later, however, it increased its stake to 80 percent.
At about the same time that The Stars Group was finalizing its acquisition of CrownBet, the latter was also finalizing plans to acquire William Hill’s Australian business. William Hill entered the Australian market in a similar manner after it acquired Sportingbet and its local businesses, including Tom Waterhouse and Centrebet brands, for about £459 million in 2013. After about six years in operation, William Hill announced that it would be selling its Australian business and awarded the bid to CrownBet late in February. The bid was highly contested by other betting companies, including bet365, Paddy Power, and Ladbrokes.
Cutting Costs, Boosting Operations
The main reason for CrownBet’s acquisition of William Hill’s Australian business was to increase its customer base. The betting market in Australia is seeing tremendous growth. However, according to CrownBet’s chief executive officer, Matt Tripp, the merger is expected to save both companies up to $38 million in expenses by 2020. The merger would also open up new opportunities to both betting companies, thus boosting their performances and increasing their revenue.
The enormity of this recent acquisition and merger of CrownBet and William Hill’s Australian business can be seen as the result of what was created overnight: The third-largest sports betting service provider in Australia. Second on this list is Tabcorp Holdings Ltd., which also recently merged with Tatts Group Ltd. in a transaction worth about $8.3 billion. The largest sports betting provider in the country is Paddy Powder Betfair’s Sportsbet. It is interesting to note that Tripp is credited with the success of the Sportsbet brand considering he bought it for AUS $250,000 in 2005, built it up and later sold it for more than AUS $338 million six years later.
Bringing Business Back Home
Although it is not official yet, it is expected that CrownBet will change its name to Sportingbet, the same brand that William Hill acquired in 2013. Interestingly, Tripp and his family were the founders of Sportingbet. More than a decade later, Sportingbet is reverting back to its original owners, and Tripp is evidently happy about it. In an interview with The Australian, Tripp said that both he and his father were happy the brand was coming back to the family despite the fact that it will be under The Stars Group.
An Official Announcement is Due
The planned renaming of CrownBet to Sportingbet was announced by The Stars Group’s chief executive officer Rafi Ashkenazi. According to Ashkenazi, the decision was largely influenced by the fact that Tripp was the original owner of Sportingbet and was largely responsible for its unprecedented success.
However, it is important to note that CrownBet and, Tripp in particular, have not yet made an announcement regarding this. That said, Tripp has spoken about it in previous interviews and is likely to make an official announcement soon. However, he insists any changes must be discussed with the company’s clients and shareholders before an official announcement can be made.
An energy industry consultant who spends a lot of time on North Sea oil rigs and conducting studies in and around the Arctic Circle. Sean started playing online casino games to compensate for long periods of boredom. In no time he turned from casual player to fan to fanatic and has since made it his mission to study the online casino universe from the players perspective. As a regular participant and contributor to Rick’s Picks, Sean sits in the Rick’s Picks advisory board and oversees our review team.
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