Markets

Paddy Power Betfair says in discussions to buy Fanduel

Paddy Power Betfair says in discussions to buy Fanduel

Paddy Power-Betfair confirmed the talks two days after the U.S. Supreme Court struck down a 1992 federal law prohibiting states from authorizing sports wagering.

According to a report from the British Broadcasting Corporation (BBC), Dublin-headquartered Paddy Power Betfair entered the American daily fantasy sports market past year following its $48 million purchase of PlayDraft.com and stated earlier today that it is now considering a move for FanDuel Incorporated in order "to create a combined business to target the prospective United States sportsbetting market".

FanDuel, which is based largely in NY as its main businesses are in America, still maintains a significant presence in Scotland.

Fantasy sports websites have been able to operate because they are considered to be games of skill rather than chance. Last year, the company acquired one of FanDuel's competitors, Draft, for nearly $50 million, proceeding to spend a lot of money for marketing in the following months.




Analysts have valued FanDeal at more than $1bn.

Paddy Power Betfair's shares jumped by more than 12.2% in a day when the supreme court announced its decision earlier this week, signalling analysts' belief that it is well placed to launch an assault on the USA market. The company operates through Online, Australia, Retail, and United States segments.

The Dublin-based group also runs the leading horse racing television and betting network in the USA and has an online casino business in New Jersey. Company officials hope to be licensed and offering online casino games and sports betting by 2019.

"For both sides, a deal would make a huge amount of sense strategically and on the face of it, an amalgamated business would represent a powerful combination in the USA sports betting market", Davy analysts wrote in a note.