Paddy Power Betfair buys fantasy sports website Fan Duel

23 May 2018

Gambling firm Paddy Power Betfair has accepted merge with the US fantasy sports betting site Fan Duel.

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

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

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

The offer

Under the agreement, 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 business will control the service, which will become a subsidiary.

Paddy Power Betfair manager Peter Jackson stated the combination would develop the "biggest online business" in the US gaming market.

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

The punters

Fan Duel lets its customers 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 The United States and Canada.

Users select dream sports groups utilizing a fantasy spending plan, and play head-to-head or multi-player contests online.

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

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Paddy Power Betfair went into the US fantasy sports market in 2015 with the acquisition of Draft, a United States dream sports website, for $48m (₤ 35m).

The Dublin-based company already has an US department, which includes 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 wagering exchange in the state of New Jersey.

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

The offer is anticipated to close in the third quarter this year.

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