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Paddy Power in Speak To Merge With Fan Duel

Paddy Power in talks to merge with Fan Duel

16 May 2018

Gambling firm Paddy Power Betfair has said it is in talks over a merger in the US with dream sports site Fan Duel.

Talks centre around combining its US operation with Fan Duel to create an organization to “to target the prospective US sports betting market”.

It comes as the American Supreme Court overturned 1992 legislation that banned sports betting in a lot of US states.

Fan Duel allows sports fans to gamble on dream sports leagues and contests.

Merger abandoned

It uses 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 The United States and Canada.

Players pick which contest they wish to enter, build fantasy sports groups that do not breach a fantasy wage cap, and engage in head-to-head or multi-player contests.

The company, which was founded in 2009, is based in New york city and has about 400 staff members.

A proposition to combine with rivals Draft Kings was deserted in 2015, after being obstructed by the Federal Trade Commission on the premises that the combined company would manage a 90% market share.

Since the Supreme Court judgment on 14 May Draft Kings has actually signalled its intent to enter the sports gambling market.

Horseracing channel

The Dublin-based gambling firm currently has a United States division, which consists of the yohaig code TVG Network, a horseracing TV channel and online betting network which is active in 35 states.

And in the state of New Jersey, the business has an online casino and a horse racing betting exchange.

A merger with Fan Duel would bet9ja’s welcome offer it access to countless prospective sports betting fans.

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

“Fan Duel competing Draft Kings has already said it will enter the sports wagering market and there is some sense that regional incumbents may be able to get substantial market share before UK and European operators get a chance to mobilise their forces,” he said.