Paddy Power Betfair buys dream sports site Fan Duel

23 May 2018

Gambling firm Paddy Power Betfair has actually accepted merge with the US dream sports wagering site Fan Duel.

It wants to target the US sports wagering market that is set to open up after a court decision.

In May, the US Supreme Court reversed 1992 legislation that prohibited sports betting in a lot of states.

Fan Duel, which was established in Scotland, permits sports fans to bet on fantasy sports leagues and contests in American sports.

The deal

Under the contract, Paddy Power Betfair will throw in its existing US possessions worth $612m together with $158m of cash to take a 61% stake in the combined business.

Existing Fan Duel investors will own 39%.

The Dublin-based company will manage the service, which will end up being a subsidiary.

Paddy Power Betfair manager Peter Jackson said the combination would develop the "largest online company" in the US gambling industry.

" [We will have] a large sports-focused consumer base and a substantial nationwide footprint," he said.

The punters

Fan Duel lets its consumers bank on fantasy sport games, based around NFL Football, NBA basketball, MLB baseball and NHL ice hockey.

There are an estimated 30 million adult dream sports gamers in North America.

Users choose fantasy sports teams using a dream budget, and play head-to-head or multi-player contests online.

Players pay an entry cost for each contest and contend for money rewards.

The landscape

Paddy Power Betfair went into the US fantasy sports market in 2015 with the acquisition of Draft, an US fantasy sports site, for $48m (₤ 35m).

The Dublin-based firm already has an US department, that includes the TVG Network, a horseracing TV channel and an online betting network which is active in 35 states.

Paddy Power likewise has an online gambling establishment and a horseracing wagering exchange in the state of New Jersey.

Under the terms of its newest bet9ja's welcome offer, Paddy Power can increase its stake in Fan Duel to 80% after three years and 100% after 5 years.

The deal is anticipated to close in the yohaig code third quarter this promotion code year.

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14 May 2018