Montreal-Based Amaya Gaming Buys PokerStars
On Friday, the Amaya Gaming Group confirmed the rumours that the Canada-based gaming company would be buying out the largest online poker company in the world. This acquisition turns the already thriving Amaya into a "global online gaming powerhouse."
David Baazov, the Founder, Chairman and Chief Execuitive Officer of Amaya, said: "We believe the combined company will be a global online gaming powerhouse in a large and growing global online gaming market."
Amaya Buys PokerStars and Full Tilt Poker
Montreal-based Amaya Gaming has bought PokerStars and Full Tilt Poker. The acquisition of these companies has come as part of the deal in which the Amaya Gaming Group purchased the Oldford Group. The Oldford Group is a parent company to the Rational Group Ltd., and in turn, the Rational Group owns both PokerStars and Full Tilt Poker, as well as a number of other gaming companies.
Amaya Gaming Group bought the Oldford Group for a sum of US$4.9 billion in cash. Before the deal was finalised, there had been rumours that a deal was in the cards. Amaya's shares on the Toronto Stock Exchange jumped by over 40 per cent on Friday. The shares had peaked at $20.20 and had closed the day on $19.95. Shares were up by $5.87.
Rational Brands Could Enter the United States
The Rational Group companies, PokerStars and Full Tilt Poker have been having some trouble entering the recently legalised gaming market in the United States. Nevada, Delaware and New Jersey have already legalised online poker, and PokerStars has not yet been given a license to operate in the United States. PokerStars has a rocky history in the United States, with Rational's executive, Isaei Scheinberg, still being under indictment in the U.S. He and other gambling executives stand accused of illegal gambling, money laundering, and bank fraud, which took place before online gambling was legalised in the U.S.
It is expected, however, that with Amaya's good relationships in the gambling world in the United States, in its role as a slot machine seller, will stand the company in good stead. It is hoped that Amaya will pave the way for PokerStars and other gaming operators back into the U.S. gambling market.
Baazov explained to analysts: "We anticipate Amaya's track record in the United States has the potential to facilitate a speedier entry into the U.S. for Rational's brands."
