When Flutter bought The Stars Group, an online poker and casino business, for €11 billion last year, it wasn’t expecting blockbuster earnings growth. The Stars deal made sense at the time because it was cheap, and it complemented Flutter’s sports betting business nicely. It diversified Flutter’s business lines and geographies, allowed for €150 million of shared costs to be cut, and created cross-selling opportunities. Flutter was able to acquire Stars Group, despite similar revenue and smaller earnings, because the market was tepid on Stars Group’s prospects. Stars traded at seven times earnings when the deal was announced in October, compared…

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