Entrepreneur David Baazov Crowned ‘King of Online Gambling’ by Forbes

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David Baazov

In its December magazine, Forbes has profiled Amaya Gaming Group CEO David Baazov,  detailing his bold 2014 acquisition of privately held poker operator Rational Group (owners of PokerStars and Full Tilt). The magazine labels the young CEO of Amaya Gaming Group, as the new ‘king of online gambling’ having pulled off an incredible industry coup, SBC News said.

The profile piece written by Forbes Staff Editor Nathan Vardi,  recounts how Baazov had been eyeing Rational Group operations and governance for several months prior to making his move. It further details investment negotiations between Baazov and strategic investment fund Blackstone GSO who would invest $1 billion in the acquisition deal, its biggest ever investment commitment, the report said.

In August Amaya Gaming completed the acquisition of the Rational Group for $4.9 billion, a deal that would shock the online gambling industry. Baazov, the founder of Amaya Gaming, had spearheaded the acquisition investment for the purchase Rational Group by selling approximately $1.7 billion of Amaya Gaming stock at $18, according to SBC news.

Forbes labels the $4.9 billion acquisition of the Rational Group the market leaders in online poker as one of 2014’s most interesting tech buyouts. At the start of 2014, publicly traded Amaya Gaming had revenues of $150 million and a share price of less than $7. The purchase of Rational Group enterprises who at the time reported $1.1 billion in revenues seemed like futile hope by Amaya Gaming and Baazov, the report said.

Nevertheless through sheer determination, luck and intelligence Baazov managed to not only raise the capital needed for the corporate acquisition, but further convince PokerStars owners the Scheinberg family to sell its firm to the little known but ambitious  Amaya Gaming Group, SBC News said.

The acquisition of Rational Group has catapulted Amaya Gaming Group share price from $7.00 to $28.50 (peak November $38.78). Baazov himself has further proved to be a real winner in the negotiations, with his 12%  stake in Amaya Gaming now valued at + $800 million, according to the report.

Whilst 2014 has proved to be a successful year for Amaya Gaming and its corporate value, financial analysts have predicted that Baazov and his firm face a tough 2015, as the operator will have to justify its leveraged acquisition of Rational Group. Amaya Group will likely face a decline in revenues having withdrawn from Turkey, Russia and Germany.

The igaming and sports betting industry will further await the highly anticipated launch of Amaya Gaming’s sports betting and casino product, as the firm looks to broaden its online gambling product inventory, SBC News said.

2 COMMENTS

  1. […] As well as luring in the vulnerable with online mortgages and small loans, Jews have also been reaping the “rainless crop” via online gambling. One of the pioneers and biggest players in the online poker industry was Isai Scheinberg, an “Israeli-Canadian” former programmer for IBM. Scheinberg is the co-founder and former co-owner (with his son Mark Scheinberg) of PokerStars “the largest online poker cardroom in the world.” In United States v. Isai Scheinberg et al., federal authorities accused Scheinberg, along with associates and co-ethnics Howard Lederer and Rafael Furst, of extensive fraud and money laundering. The case concerned the fate of approximately $3 billion in assets; authorities sought prison terms for all the executives concerned, apart from Mark Scheinberg. One of the named executives, Ira Rubin, attempted to flee to Guatamala, but was arrested there on Monday, April 25, 2011. Rubin was subsequently sentenced to three years in prison, with the judge remarking: “You are an unreformed con man and fraudster.” Isai Scheinberg is still under indictment in the U.S., but has relocated himself and PokerStars to the Isle of Man, a self-governing British Crown dependency in the Irish Sea. He recently became a billionaire after selling the company to the Canada-based Amaya group. But some things never change, and the Chairman and CEO of gambling conglomerate Amaya is another co-ethnic, David Baazov. Baazov has been described by Jewish Business Week as the new “king of online gambling.” […]

  2. […] As well as luring in the vulnerable with online mortgages and small loans, Jews have also been reaping the “rainless crop” via online gambling. One of the pioneers and biggest players in the online poker industry was Isai Scheinberg, an “Israeli-Canadian” former programmer for IBM. Scheinberg is the co-founder and former co-owner (with his son Mark Scheinberg) of PokerStars “the largest online poker cardroom in the world.” In United States v. Isai Scheinberg et al., federal authorities accused Scheinberg, along with associates and co-ethnics Howard Lederer and Rafael Furst, of extensive fraud and money laundering. The case concerned the fate of approximately $3 billion in assets; authorities sought prison terms for all the executives concerned, apart from Mark Scheinberg. One of the named executives, Ira Rubin, attempted to flee to Guatamala, but was arrested there on Monday, April 25, 2011. Rubin was subsequently sentenced to three years in prison, with the judge remarking: “You are an unreformed con man and fraudster.” Isai Scheinberg is still under indictment in the U.S., but has relocated himself and PokerStars to the Isle of Man, a self-governing British Crown dependency in the Irish Sea. He recently became a billionaire after selling the company to the Canada-based Amaya group. But some things never change, and the Chairman and CEO of gambling conglomerate Amaya is another co-ethnic, David Baazov. Baazov has been described by Jewish Business Week as the new “king of online gambling.” […]

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