Paddy Power in speak to combine with Fan Duel
16 May 2018
Gambling company 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 produce a business to "to target the potential US sports wagering market".
It comes as the American Supreme Court reversed 1992 legislation that banned sports wagering in most US states.
Fan Duel permits sports fans to gamble on dream sports leagues and contests.
Merger abandoned
It offers fantasy sport gaming around NFL Football, MLB baseball, NBA basketball and NHL ice hockey. There are estimated to be around 30 million adult dream sports gamers in the yohaig code United States and Canada.
Players pick which contest they wish to get in, build fantasy sports groups that do not breach a fantasy income cap, and engage in head-to-head or multi-player contests.
The company, which was founded in 2009, is based in New York and has about 400 workers.
A proposition to merge with competitors Draft Kings was abandoned last year, after being obstructed by the Federal Trade Commission on the grounds that the combined firm would manage a 90% market share.
Since the Supreme Court judgment on 14 May Draft Kings has indicated its objective to get in the sports gambling market.
Horseracing channel
The Dublin-based gambling firm already has an US department, that includes the 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 casino and a horse racing wagering exchange.
A merger with Fan Duel would give it access to millions of possible sports betting fans.
Neil Wilson, primary analyst at markets.com, said wagering firms were currently jockeying for position after the Supreme Court ruling.
"Fan Duel competing Draft Kings has already stated it will go into the sports betting market and there is some sense that regional incumbents may have the ability to gain considerable market share before UK and European operators get an opportunity to mobilise their forces," he stated.
