Paddy Power in Talk With Merge With Fan Duel
Paddy Power in talk with merge with Fan Duel
16 May 2018
Gambling firm Paddy Power Betfair has stated it remains in talks over a merger in the US with fantasy sports website Fan Duel.
Talks centre around integrating its US operation with Fan Duel to develop a service to "to target the potential US sports wagering market".
It comes as the American Supreme Court reversed 1992 legislation that banned sports betting in the majority of US states.
Fan Duel permits sports fans to bet on fantasy sports leagues and contests.
Merger abandoned
It uses fantasy sport gaming around NFL American Football, MLB baseball, NBA basketball and NHL ice hockey. There are approximated to be around 30 million adult fantasy sports gamers in The United States and Canada.
Players select which contest they wish to enter, develop fantasy sports groups that do not breach a fantasy wage cap, and engage in head-to-head or multi-player contests.
The business, which was founded in 2009, is based in New York and has about 400 staff members.
A proposal to merge with rivals Draft Kings was deserted in 2015, after being blocked by the Federal Trade Commission on the grounds that the combined company would manage a 90% market share.
Since the Supreme Court judgment on 14 May Draft Kings has indicated its objective to go into the sports betting market.
Horseracing channel
The Dublin-based gaming firm already has an US division, which includes the 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 give it access to millions of potential sports betting fans.
Neil Wilson, primary expert at markets.