Gaming expert Warwick Bartlett (pictured) has sounded a note of caution over the deal.

Mr Bartlett is the chief executive of Castletown-based Global Betting and Gaming Consultants.

He writes:

My view is that the takeover has been driven by the opportunity in the US to grab as much market share as possible in what is potentially the largest e-gaming market in the world, and regulation. Both in Europe, and the prospect of having to license on a state by state basis in the US.

I am hopeful that the 80 or so redundancies recently announced by Poker Stars, Isle of Man, will be part of the £140m synergy savings (10% of controllable costs) announced in the deal, without further reductions in staff numbers.

There were significant tax advantages for the founders of PokerStars to be on the Isle of Man, but that has partially fallen away with public company ownership. The new corporate headquarters of the combined group will be in Dublin with a corporation tax rate of 12.5%. But this may change with politics being the driver.

Looking further ahead the Isle of Man’s future as a corporate headquarter provider for the group will depend on the sustainability of Irish corporation tax, the lowest in the EU.

Ireland is currently the poster boy of the EU because of its stance on Brexit. However, that can change, and Ireland is seen as the most vulnerable country if the UK leaves the EU without a deal.

The Conservative government has said that they intend to lower corporation tax significantly, but this assumes they win the next election. Labour are proposing a rate of 26%.

Alternatively, if the UK remains in the EU pressure will be brought on Ireland by other member states to seek parity within prescribed bands on corporation tax.

The Irish Times in 2017 quoted Jim Stewart, associate professor at Trinity College Dublin, who said: ’Having a low corporate tax regime at the core of Ireland’s economic policy is a risky strategy. With a likely reduction of the corporate tax rate in both the UK and the US, huge pressure could be put on Ireland.’

All of this has to be reconciled with the fact that Paddy Power traded on the Isle of Man for many years until the merger with Betfair (now Flutter) and to achieve ’synergies’ the Isle of Man office was closed.

In my view, the key in today’s world is to maintain maximum corporate flexibility rather than put all your eggs in one basket.