Paddy Power Betfair interested in FanDuel
The company is interested in acquiring the DFS giant in order to target the US sports betting market.
US.- Paddy Power Betfair is considering merging its US business with daily fantasy sports (DFS) company FanDuel. The move would help the company target the emerging sports betting market after the Supreme Court lifted the federal ban that prohibited states from offering sports betting.
The Dublin-based company said that while there is no certainty as to whether an agreement will be reached, talks with FanDuel are ongoing. After the US Supreme Court ruling, Paddy Power Betfair shares rose 5.4 per cent. The company already operates in the US as it runs the leading horse racing television and betting network and has online casino businesses in New Jersey, which brought US$140 million in revenue last year. Last year, Paddy Power Betfair entered the DFS market as it acquired the operator DRAFT in a US$48 million operation.
“Paddy Power Betfair plc notes the media speculation and confirms it is in discussions regarding a potential combination of the Group’s US business and FanDuel to create a combined business to target the prospective US sports betting market. Discussions are ongoing and there is no certainty as to whether an agreement will be reached, or as to the terms or timing of any transaction.”
It is expected that FanDuel will enter the sports betting market as soon as it has the green light to operate. Its rival DraftKings, which wanted to merge last year but received the thumbs down as they would’ve held 90 per cent of the market, already announced that it is ready to offer its services in a sports betting market.
Analysts at Davy Stockbrokers said: “For both sides, a deal would make a huge amount of sense strategically and on the face of it, an amalgamated business would represent a powerful combination in the U.S. sports betting market.”
