Paddy Power in talks to merge with Fan Duel

16 May 2018

Gambling company Paddy Power Betfair has said 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 produce a service to "to target the potential US sports wagering market".

It comes as the American Supreme Court reversed 1992 legislation that prohibited sports wagering in the majority of US states.

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

Merger abandoned

It uses fantasy sport video gaming around NFL Football, MLB baseball, NBA basketball and NHL ice hockey. There are estimated to be around 30 million adult dream sports players in North America.

Players choose which contest they desire to enter, construct dream sports groups that do not breach a dream salary cap, and take part in head-to-head or multi-player contests.

The company, which was founded in 2009, is based in New York and has about 400 employees.

A proposal to combine with competitors Draft Kings was deserted in 2015, after being obstructed by the yohaig code Federal Trade Commission on the premises that the combined firm would control a 90% market share.

Since the Supreme Court ruling on 14 May Draft Kings has signified its objective to get in the sports gambling market.

Horseracing channel

The Dublin-based gambling firm already has a United States department, which includes the TVG Network, a horseracing TV channel and online wagering network which is active in 35 states.

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

A merger with Fan Duel would provide it access to countless potential sports wagering fans.

Neil Wilson, primary expert at markets.com, said betting companies were currently jockeying for position after the Supreme Court judgment.

"Fan Duel competing Draft Kings has already stated it will get in the sports betting market and there is some sense that local incumbents might have the ability to acquire considerable market share before UK and European operators get an opportunity to mobilise their forces," he said.