Sportsbet to absorb BetEasy brand in Australia
BetEasy to cease trading as Flutter Entertainment opts for single-brand strategy amid Covid-19 sport shutdown
Australian operator BetEasy will be absorbed and replaced by rival firm Sportsbet as a result of the $10bn merger between respective parent groups The Stars Group (TSG) and Flutter.
The move represents a backtrack on strategy from Flutter and TSG, which had planned to run a dual brand operation in Australia following completion of the merger.
But Sportsbet will now consume BetEasy after Flutter opted for a single-brand strategy in the market, due to the negative impact on sports wagering caused by the coronavirus.
The combined business will account for around 26% of the online betting market in Australia, but could cost several hundred jobs, according to The Australian.
A Sportsbet spokesperson told EGR Intel: “The merger comes at a challenging time for our industry and the broader economy. Given the current circumstances, Flutter currently intends to pursue a single brand strategy for its Australian operation. This is subject to ratification once the proposed combination with TSG is completed.
“We are now intending to pursue a single-brand strategy principally because of the ongoing volatility to sporting competitions around the world and the wider economy stemming from Covid-19. We would also be able to execute a single-brand customer migration in a shorter timeframe, allowing us to focus our attention on providing the best possible experience for our customers,” he added.
Sportsbet will likely see this as an opportunity to fend off Tabcorp’s TAB brand in the country’s competitive sports betting market.
Flutter and TSG will vote on the deal later this week to confirm its official regulatory approval after the Australian Competition and Consumer Commission gave ‘informal approval’ earlier this year.
One complication that arises from the absorption is for the sports industry in terms of sponsorship.
Earlier this year, BetEasy extended its sponsorship deal with the Australian Football League (AFL) until 2025 in a contract worth a reported $5.4m a year.
It is expected that Sportsbet will assume the role as AFL’s wagering and sponsorship partner.