Paddy Power in discussions to combine U.S. business with FanDuel

Lloyd Doyle
May 16, 2018

Paddy Power Betfair plc (LON:PPB) gained on Wednesday as it confirmed it is in talks to acquire U.S. daily fantasy sports company FanDuel.

The bookmaker, which also runs the leading horse racing television and betting network in the U.S. and has an online casino business in New Jersey and and past year paid $48m to acquire DRAFT, a USA fantasy sports site.

It added, however, that "there is no certainty as to whether agreement will be reached, or as to the terms or timing of any transaction" and said a further announcement will be made as appropriate.

The move is created to capitalise on the US Supreme Court's decision on Monday to strike down a 1994 ban that prevented most states from permitting sports betting. It is a major player in the U.S. fantasy sports market, where players pick teams and compete against others for cash prizes.

Nearly exactly a year ago, Paddy Power Betfair acquired daily fantasy sports platform Draft in a deal worth around US$50mln.

In Britain, Paddy Power and other bookmakers are bracing for the impact of imminent state intervention in the sector.

The move offers a potential lifeline to United Kingdom bookmakers, which are braced for the imminent outcome of a review into so-called fixed-odds betting terminals that is expected to slash the maximum stake punters are allowed to bet.

Other reports by Iphone Fresh

Discuss This Article