The deal comes at a time of consolidation in the gambling industry in Australia and internationally as operators face stiff competition and tightening profit margins. The BetEasy brand,for example,was born out of CrownBet's takeover of William Hill Australia.
In Australia,online bookmakers have been challenging the Tabcorp-owned TAB,which has a monopoly on retail bookmaking shops,but life has become more difficult for them with theintroduction of state-based digital betting taxes.
It is not yet clear how the merger of their parent companies will change how SportsBet and BetEasy operate,and whether they will continue to exist as two separate brands.
Sportsbet chief executive Barni Evans said in a statement that the company was excited about the deal,which would"expand our reach as a global leader in the rapidly changing wagering market".
"Locally,we’re excited about what Sportsbet and BetEasy can achieve through our great people and brands,"Mr Evans said."Right now we’re focused on delivering the best Spring Racing Carnival for our customers."
Flutter said in material released to the London Stock Exchange that the combined offering of Sportsbet and BetEasy in Australia,and the Sky Bet,Paddy Power and Betfair brands in the UK and Ireland,would give it"access to trusted brands with a sustainable base of highly recreational customers".
"The combined group is also expected to benefit from significant cost synergies in its core markets from the integration of operations and enhanced returns on technology and marketing investment,"it said.