Paddy Power Betfair purchases fantasy sports website Fan Duel
23 May 2018
Gambling firm Paddy Power Betfair has agreed to merge with the US fantasy sports wagering website Fan Duel.
It desires 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 wagering in most states.
Fan Duel, which was founded in Scotland, allows sports fans to gamble on fantasy sports leagues and contests in American sports.
Under the contract, Paddy Power Betfair will throw in its existing US possessions worth $612m in addition to $158m of money to take a 61% stake in the combined organization.
Existing Fan Duel financiers will own 39%.
The Dublin-based business will control the service, which will become a subsidiary.
Paddy Power Betfair employer Peter Jackson said the mix would produce the "largest online organization" in the US gaming market.
" [We will have] a large sports-focused client base and a comprehensive nationwide footprint," he said.
the yohaig code 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 players in North America.
Users select fantasy sports teams using a fantasy budget, 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 dream sports market last year with the acquisition of Draft, a United States fantasy sports site, for $48m (₤ 35m).
The Dublin-based company already has an US division, that includes the TVG Network, a horseracing TV channel and an online betting network which is active in 35 states.
Paddy Power also has an online gambling establishment and a horseracing betting exchange in the state of New Jersey.
Under the yohaig code terms of its most current deal, Paddy Power can increase its stake in Fan Duel to 80% after three years and 100% after five years.
The deal is expected to close in the third quarter this promotion code year.
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