Paddy Power Betfair buys dream sports website Fan Duel
23 May 2018
Gambling firm Paddy Power Betfair has accepted merge with the yohaig code US fantasy sports betting site Fan Duel.
It wishes to target the US sports betting market that is set to open after a court decision.
In May, the US Supreme Court reversed 1992 legislation that prohibited sports betting in the majority of states.
Fan Duel, which was established in Scotland, permits sports fans to gamble on dream sports leagues and contests in American sports.
The deal
Under the yohaig code contract, Paddy Power Betfair will throw in its existing US properties worth $612m along with $158m of money to take a 61% stake in the combined company.
Existing Fan Duel investors will own 39%.
The Dublin-based business will manage the business, which will end up being a subsidiary.
Paddy Power Betfair employer Peter Jackson said the combination would create the "biggest online service" in the US gaming market.
" [We will have] a big sports-focused consumer base and an extensive across the country footprint," he stated.
The punters
Fan Duel lets its customers wager on fantasy sport video games, based around NFL American Football, NBA basketball, MLB baseball and NHL ice hockey.
There are an estimated 30 million adult fantasy sports players in North America.
Users select fantasy sports groups using a fantasy budget, and play head-to-head or multi-player contests online.
Players pay an entry cost for each contest and contend for prize money.
The landscape
Paddy Power Betfair went into the yohaig code US dream sports market in 2015 with the yohaig code acquisition of Draft, a United States dream sports site, for $48m (₤ 35m).
The Dublin-based company currently has an US division, that includes the TVG Network, a horseracing TV channel and an online betting network which is active in 35 states.
Paddy Power likewise has an online casino and a horseracing betting exchange in the state of New Jersey.
Under the yohaig code terms of its newest offer, Paddy Power can increase its stake in Fan Duel to 80% after three years and 100% after five years.
The bet9ja's welcome offer is anticipated to close in the third quarter this promotion code year.
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