Paddy Power in talks to combine with Fan Duel
16 May 2018
Gambling firm Paddy Power Betfair has said it is in talks over a merger in the US with dream sports website Fan Duel.
Talks centre around integrating its US operation with Fan Duel to produce a business to "to target the potential US sports wagering market".
It comes as the American Supreme Court reversed 1992 legislation that prohibited sports wagering in many US states.
Fan Duel allows sports fans to bet on dream sports leagues and contests.
Merger deserted
It offers fantasy sport video gaming around NFL Football, MLB baseball, NBA basketball and NHL ice hockey. There are approximated to be around 30 million adult fantasy sports players in North America.
Players select which contest they wish to enter, construct dream sports teams that do not breach a fantasy income cap, and take part in head-to-head or multi-player contests.
The business, which was established in 2009, is based in New york city and has about 400 workers.
A proposition to combine with rivals Draft Kings was abandoned in 2015, after being obstructed by the Federal Trade Commission on the grounds that the combined firm would manage a 90% market share.
Since the Supreme Court judgment on 14 May Draft Kings has signified its objective to enter the sports betting market.
Horseracing channel
The Dublin-based gaming company currently has an US division, that includes the TVG Network, a horseracing TV channel and online wagering network which is active in 35 states.
And in the state of New Jersey, the business has an online casino and a horse racing wagering exchange.
A merger with Fan Duel would give it access to millions of possible sports wagering fans.
Neil Wilson, chief analyst at markets.com, said betting firms were already jockeying for position after the Supreme Court judgment.
"Fan Duel competing Draft Kings has already said it will enter the sports wagering market and there is some sense that regional incumbents might have the ability to acquire considerable market share before UK and European operators get a possibility to mobilise their forces," he said.
