Online gambling giant The Stars Group (TSG) is planning to invest big in online betting as it has signed an agreement of $4.7 billion deal to acquire UK firm Sky Betting & Gaming.
Star Group shares jumped 14.2 percent to 33.45 on the stock market on Monday hitting a record high. Its relative strength line is also at an all-time high.
The deal is expected to create the biggest publicly listed online gambling company and it would leave the company to take some advantage if an upcoming Supreme Court decision legalizes sports gambling in more states.
The deal would also put it in a position to challenge US gambling giants such as Wynn Resorts and Las Vegas Sands.
Other casino stocks include MGM Resorts International, Boyd Gaming and Caesars Entertainment and Boyd Gaming among its competitors.
"The US sports betting Supreme Court case would be holding a huge potential. With Stars' old database, Sky Betting and Gaming's strengths and their track record in UK, sports wagering market is expected to rise," Simon Holliday, founder of market tracking firm H2 gambling Capital said in an interview.
Stars Group's were also in talks with U.K. betting giant William Hill in 2016 but it failed in its attempt. However, it has finally succeeded in sealing the deal with Sky Bet.
Sky Bet, Sky Vegas, Sky Casino, Sky Poker and Sky Bingo are the core brands of online-based Sky Betting & Gaming. The deal promises $3.6 billion in cash, and the rest in stock.