Rafi Ashkenazi regrets failed FanDuel acquisition
Ex-Stars CEO forced to pull plug on pursuing deal for US sports betting operator due to intense integration timeline
Rafi Ashkenazi has revealed his regret at failing to strike a deal to acquire US betting operator FanDuel during his tenure as CEO of The Stars Group (TSG).
Speaking exclusively to EGR, Ashkenazi said the demands of integrating the acquired Sky Betting & Gaming (SBG) and CrownBet businesses forced Stars to step away from a potential deal for FanDuel, as his team were mindful of biting off more than they could chew in M&A terms.
Ashkenazi explained: “At the time we were doing the William Hill Australia and CrownBet deals and the deal with Sky Betting & Gaming practically at the same time.
“On top of all that, I personally was also entertaining a discussion with FanDuel. I traveled to their office in New York, I sat with their management team and we had a very long discussion.
“Three times I said to my management team to look at FanDuel as I was quite a big supporter of this business and wanted to acquire it even before PASPA was repealed.
“My team had a different view and eventually I saw that it would be impossible because they were so overloaded with other deals, and doing one more in the US would not be easy or straightforward,” he added.
TSG’s trepidation allowed Flutter Entertainment to pounce on a majority share in FanDuel back in May 2018 – the same month of the US Supreme Court’s historic decision to repeal PASPA.
FanDuel expanded beyond its core fantasy business following the acquisition to become one of the biggest sports betting operators in the US as several states legalized the vertical in wake of the ruling.
Flutter Entertainment has since acquired TSG as well as FanDuel to become the world’s largest online betting company with combined annual revenue approaching the £4bn mark.
“I do regret not buying FanDuel at the time to be honest,” Ashkenazi admitted. “That’s one of my regrets that I have because I had a very good hunch about them, more than a hunch really, because I had a clear idea of what to do with the business, even if PASPA was not repealed.”
Ashkenazi suggested the repeal of PASPA accelerated TSG’s US strategy as the PokerStars operator discussed partnerships with land-based casinos and media deals with broadcasters.
TSG eventually concluded a lucrative media deal with US broadcaster Fox to develop the Fox Bet brand, which launched in New Jersey in September 2019.