Paddy Power Betfair buys fantasy sports site Fan Duel
23 May 2018
Gambling company Paddy Power Betfair has agreed to merge with the US dream sports wagering website Fan Duel.
It desires to target the US sports wagering market that is set to open up after a court choice.
In May, the US Supreme Court reversed 1992 legislation that prohibited sports wagering in a lot of states.
Fan Duel, which was founded in Scotland, permits sports fans to gamble on fantasy sports leagues and contests in American sports.
Under the contract, 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 business.
Existing Fan Duel investors will own 39%.
The Dublin-based company will control business, which will end up being a subsidiary.
Paddy Power Betfair boss Peter Jackson said the mix would produce the "largest online business" in the US gambling industry.
" [We will have] a large sports-focused consumer base and a substantial across the country footprint," he said.
The punters
Fan Duel lets its consumers bet on fantasy sport games, based around NFL American Football, NBA basketball, MLB baseball and NHL ice hockey.
There are an approximated 30 million adult fantasy sports players in North America.
Users pick dream sports teams using a fantasy budget plan, and play head-to-head or multi-player contests online.
Players pay an entry charge for each contest and compete for prize money.
The landscape
Paddy Power Betfair went into the US dream sports market last year with the acquisition of Draft, an US fantasy sports site, for $48m (₤ 35m).
The Dublin-based company currently has a United States division, which consists of the TVG Network, a horseracing TV channel and an online wagering network which is active in 35 states.
Paddy Power likewise has an online casino and a horseracing betting exchange in the state of New Jersey.
Under the regards to its newest deal, Paddy Power can increase its stake in Fan Duel to 80% after three years and 100% after 5 years.
The deal is anticipated to close in the third this promotion code year.
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