Paddy Power Betfair Buys Fantasy Sports site Fan Duel

Paddy Power Betfair buys dream sports website Fan Duel


23 May 2018


Gambling firm Paddy Power Betfair has accepted combine with the US fantasy sports wagering website Fan Duel.


It wishes 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 banned sports betting in most states.


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


The offer


Under the agreement, Paddy Power Betfair will include its existing US possessions worth $612m in addition to $158m of cash to take a 61% stake in the combined service.


Existing Fan Duel financiers will own 39%.


The Dublin-based company will control business, which will become a subsidiary.


Paddy Power Betfair boss Peter Jackson said the combination would develop the "largest online company" in the US gambling market.


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


The punters


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


There are an estimated 30 million adult fantasy sports gamers in The United States and Canada.


Users choose dream sports groups using a dream budget plan, and play head-to-head or multi-player contests online.


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


The landscape


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