The Stars Group

History

The Stars Group traces its origins to two separate entities: Amaya Inc., a Canadian gaming-technology company founded by David Baazov in the early 2000s, and the Rational Group, parent of PokerStars and Full Tilt Poker, founded by Isai and Mark Scheinberg. In June 2014, Amaya agreed to acquire Rational Group for $4.9 billion, a landmark deal that closed in August 2014 and was financed largely by debt. The acquisition made Amaya the world's largest publicly listed online gambling company. After a period of regulatory and legal challenges—including securities-fraud charges against Baazov and a Kentucky court judgment—the company rebranded as The Stars Group in 2017, aligning its corporate identity with its most valuable asset.

Business Model

The Stars Group operated a diversified portfolio of online poker, casino, and sports betting products. Its primary revenue driver was PokerStars, which generated strong cash flows through rake and tournament fees. The company expanded into regulated markets, launching BetStars in 2015 (later rebranded as PokerStars Sports) and entering the U.S. sports-betting market after the repeal of PASPA. The acquisition of Sky Betting & Gaming in 2018 provided a dominant position in the UK's regulated online betting and casino market, contributing significant revenue from sports betting, casino games, and bingo. The company also developed a proprietary platform supporting desktop and mobile real-money gaming across all verticals.

Market Position and Competitors

By 2019, The Stars Group was one of the largest online gambling operators globally, with reported revenues of approximately $2.5 billion. It competed with major players such as Flutter Entertainment (then owner of Paddy Power, Betfair, and FanDuel), GVC Holdings (now Entain), and 888 Holdings. Its flagship PokerStars brand held a dominant share of the global online poker market, while the Sky Bet portfolio gave it a strong foothold in the UK. The company's U.S. expansion through Fox Bet positioned it as a competitor in the nascent legal sports-betting market.

Products and Brands

The Stars Group's portfolio included PokerStars, the world's largest online poker platform offering cash games, tournaments, and play-money games; Full Tilt Poker, an online poker brand known for high-stakes play and innovative formats like Rush Poker; PokerStars Casino, an online casino with slots, table games, and live dealer options; BetStars/PokerStars Sports, a mobile-first sportsbook; Fox Bet, a U.S. sports-betting product in partnership with Fox Sports; Sky Betting & Gaming, which encompassed Sky Bet, Sky Vegas, Sky Casino, Sky Bingo, and Sky Poker; and PokerStars Live, the live event arm organizing major tournament series.

Regulatory and Licensing

The Stars Group held licenses in 17 jurisdictions, including the United Kingdom, Malta, the Isle of Man, and several U.S. states. Its operations were subject to strict regulatory oversight, particularly in the UK where Sky Betting & Gaming was a major licensed entity. The company faced legal challenges, including a Kentucky court judgment related to PokerStars' historical activities, which was ultimately settled.

Acquisition by Flutter Entertainment

In October 2019, Flutter Entertainment plc agreed to acquire The Stars Group in an all-share transaction valued at approximately $6 billion including debt assumption. The deal closed on 5 May 2020, creating the world's largest online gaming operator by revenue. Post-acquisition, The Stars Group ceased to exist as a separate public entity, and its brands—most notably PokerStars, Full Tilt Poker, Fox Bet, and the Sky Betting & Gaming portfolio—were integrated into Flutter's operations. Key executive Rafi Ashkenazi stepped down, and the company's assets were folded into Flutter's global structure.