Paddy Power in speak to combine with Fan Duel

16 May 2018

Gambling company Paddy Power Betfair has said it remains in talks over a merger in the US with fantasy sports website Fan Duel.

Talks centre around integrating its US operation with Fan Duel to develop a business to "to target the prospective US sports betting market".

It comes as the American Supreme Court overturned 1992 legislation that prohibited sports betting in many US states.

Fan Duel permits sports fans to bet on fantasy sports leagues and contests.

Merger deserted

It offers fantasy sport gaming around NFL Football, MLB baseball, NBA basketball and NHL ice hockey. There are estimated to be around 30 million adult fantasy sports gamers in the yohaig code United States and Canada.

Players select which contest they wish to enter, develop fantasy sports teams that do not breach a fantasy income cap, and take part in head-to-head or multi-player contests.

The company, which was founded in 2009, is based in New York and has about 400 workers.

A proposal to combine with competitors Draft Kings was deserted last year, after being obstructed by the Federal Trade Commission on the grounds that the combined firm would control a 90% market share.

Since the Supreme Court ruling on 14 May Draft Kings has actually indicated its intention to go into the sports betting market.

Horseracing channel

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

And in the state of New Jersey, the company has an online casino and a horse racing wagering exchange.

A merger with Fan Duel would offer it access to millions of possible sports wagering fans.

Neil Wilson, primary analyst at markets.com, stated wagering firms were already jockeying for position after the Supreme Court judgment.

"Fan Duel rival Draft Kings has already said it will go into the sports betting market and there is some sense that regional incumbents might be able to acquire substantial market share before UK and European operators get a possibility to mobilise their forces," he stated.