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Paddy Power in Speak To Merge With Fan Duel

Paddy Power in speak with merge with Fan Duel

16 May 2018

Gambling company Paddy Power Betfair has stated it is in talks over a merger in the US with fantasy sports website Fan Duel.

Talks centre around combining its US operation with Fan Duel to create a service to “to target the potential US sports betting market”.

It comes as the American Supreme Court reversed 1992 legislation that banned sports wagering in many US states.

Fan Duel enables sports fans to bet on fantasy sports leagues and contests.

Merger deserted

It provides fantasy sport video gaming around NFL American Football, MLB baseball, NBA basketball and NHL ice hockey. There are estimated to be around 30 million adult fantasy sports gamers in North America.

Players choose which contest they wish to get in, build dream sports teams that do not breach a dream wage cap, and take part in head-to-head or multi-player contests.

The company, which was established in 2009, is based in New york city and has about 400 workers.

A proposal to combine with rivals Draft Kings was deserted last year, after being blocked by the yohaig code Federal Trade Commission on the premises that the combined company would manage a 90% market share.

Since the Supreme on 14 May Draft Kings has actually signalled its objective to get in the sports betting market.

Horseracing channel

The Dublin-based betting company currently has a United States department, that includes the yohaig code TVG Network, a horseracing TV channel and online wagering network which is active in 35 states.

And in the state of New Jersey, the company has an online gambling establishment and a horse racing betting exchange.

A merger with Fan Duel would provide it access to countless potential sports betting fans.

Neil Wilson, primary analyst at markets.com, stated wagering companies were currently jockeying for position after the Supreme Court ruling.

“Fan Duel rival Draft Kings has already stated it will enter the sports wagering market and there is some sense that local incumbents might have the ability to acquire significant market share before UK and European operators get a possibility to mobilise their forces,” he stated.