Paddy Power Betfair buys fantasy sports website Fan Duel

23 May 2018

Gambling firm Paddy Power Betfair has actually accepted combine with the US fantasy sports betting 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 overturned 1992 legislation that prohibited sports betting in many states.

Fan Duel, which was established in Scotland, enables sports fans to gamble on dream sports leagues and contests in American sports.

The offer

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

Existing Fan Duel financiers will own 39%.

The Dublin-based business will control the company, which will end up being a subsidiary.

Paddy Power Betfair manager Peter Jackson stated the combination would produce the "biggest online service" in the US gambling market.

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

The punters

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

There are an approximated 30 million adult fantasy sports players in North America.

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

Players pay an entry charge for each contest and compete for prize money.

The landscape

Paddy Power Betfair entered the US fantasy sports market last year with the acquisition of Draft, an US fantasy sports site, for $48m (₤ 35m).

The Dublin-based company currently has an US department, which consists of the TVG Network, a horseracing TV channel and an online wagering network which is active in 35 states.

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

Under the regards to its newest deal, Paddy Power can increase its stake in Fan Duel to 80% after three years and 100% after five years.

The offer is expected to close in the third quarter this promotion code year.

US judgment opens method for sports betting

14 May 2018