Paddy Power Betfair purchases dream sports website Fan Duel

23 May 2018

Gambling company Paddy Power Betfair has actually consented to merge with the US dream sports betting website Fan Duel.

It wants to target the US sports betting market that is set to open after a court choice.

In May, the US Supreme Court reversed 1992 legislation that prohibited sports betting in many states.

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

The deal

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

Existing Fan Duel financiers will own 39%.

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

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

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

The punters

Fan Duel lets its customers wager on dream sport games, based around NFL Football, NBA basketball, MLB baseball and NHL ice hockey.

There are an estimated 30 million adult dream sports players in The United States and Canada.

Users pick dream sports teams utilizing a fantasy spending plan, and play head-to-head or multi-player contests online.

Players pay an entry fee for each contest and contend for cash rewards.

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).

the yohaig code Dublin-based company already has a United States department, which consists of the TVG Network, a horseracing TV channel and an online betting network which is active in 35 states.

Paddy Power likewise has an online gambling establishment and a horseracing wagering exchange in the state of New Jersey.

Under the yohaig code terms of its latest offer, 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 quarter this promotion code year.

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