PokerStars is pulling out of China, Taiwan, and Macau – iGB
Flutter Entertainment is closing down the PokerStars brand in China, Taiwan, and Macau. This is part of the company’s plan to decrease its exposure to unregulated markets after its merger with The Stars Group.
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PokerStars Exits China, Taiwan, and Macau
Flutter Entertainment has officially stated that it is closing down the PokerStars brand in China, Taiwan, and Macau. This move is part of the company’s plan to decrease its exposure to unregulated markets after its merger with The Stars Group.
When announcing the company’s 2020 half-year financial results, Flutter said, “There are some TSG jurisdictions where [it] had previously decided not to operate, and in these cases, we have now closed these markets.”
The company has now taken steps to exit the Chinese, Taiwanese, and Macau markets, which do not allow online gaming. It did not reveal whether it has closed or will close operations in other markets.
A spokesperson for the operator explained, “As we confirmed in our interim results statement last week, we have been reviewing the compliance standards and market risk exposure of the combined group. While we have not yet fully completed the review, we have identified some areas that need improvement.”
The representative further stated that the collective effect of these actions would result in a revenue impact of roughly £65 million (€73.2 million/$86.8 million), indicating that the majority of this impact “pertains to modifying our responsible gaming/compliance protocols and implementing enhanced verifications within the PokerStars enterprise.”
Flutter consented to acquire the Stars Group in October 2019, with the £3.8 billion agreement finalized in May of this year following approval from both sets of stakeholders.
Flutter also revealed in its first-half results that it intends to transfer all of its sports wagering brands to the platform utilized by its Paddy Power Betfair division.
Moreover, the corporation declared that the PokerStars brand was “under-resourced” and would be augmenting expenditures on the poker behemoth, particularly in promotional activities.
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