Paddy Power Betfair buys fantasy sports site Fan Duel

23 May 2018

Gambling firm Paddy Power Betfair has agreed to combine with the US dream sports betting website Fan Duel.

It wants 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 the majority of states.

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

The deal

Under the arrangement, Paddy Power Betfair will throw in its existing US properties worth $612m in addition to $158m of cash to take a 61% stake in the combined business.

Existing Fan Duel financiers will own 39%.

The Dublin-based business will control the service, which will end up being a subsidiary.

Paddy Power Betfair manager Peter Jackson said the combination would create the "largest online business" in the US gambling industry.

" [We will have] a big sports-focused customer base and an extensive nationwide footprint," he said.

The punters

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

There are a projected 30 million adult fantasy sports players in North America.

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

Players pay an entry charge for each contest and contend for money prizes.

The landscape

Paddy Power Betfair went into the US fantasy sports market last year with the yohaig code acquisition of Draft, an US dream sports website, for $48m (₤ 35m).

The Dublin-based company currently has a United States division, that 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 betting exchange in the state of New Jersey.

Under the terms of its newest offer, Paddy Power can increase its stake in Fan Duel to 80% after three years and 100% after 5 years.

The bet9ja's welcome offer is anticipated to close in the 3rd quarter this promotion code year.

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14 May 2018