According to media reports, Paddy Power Betfair has entered negotiations for the acquisition of the online daily fantasy sports (DFS) operator FanDuel in an attempt to take advantage of the recently-lifted federal ban on sports betting in the US.
Rumour has it that the two parties have already been close to completing a deal, but a person close to the UK and Ireland-based sports betting operator explained that the purchase talks with FanDuel are still ongoing. Earlier today, the company itself confirmed the rumoured deal, saying that it is currently in merger talks with FanDuel.
Paddy Power Betfair also explained that the negotiations are centred around combining its existing operations with the local DFS operator, which already has a good presence in the county, in order to create a joint venture that would target the possibilities in the US sports betting market. The announcement follows the decision of the US Supreme Court which overturned the Professional and Amateur Sports Protection Act of 1992 and lifted the federal ban imposed on sports betting operations by the afore-mentioned piece of legislation.
The UK and Ireland-based bookmaker set foot in the US DFS market in 2017 for the first time, thanks to the acquisition of the local fantasy sports website Draft at the price of $48 million. The currently existing US division of the gambling operator includes The TVG Network, a web-based betting network that is available in 35 US states as well as a horseracing TV channel. An online casino and a horse racing betting exchange are also offered by the operator in the state of New Jersey.
FanDuel Would Also Benefit from the Merger
A possible merger with FanDuel is expected to provide Parry Power Betfair with access to literally millions of potential customers on the local sports betting market, with the latter set to become a crowded and highly-competitive one due to a large number of companies having their eyes on the new betting options available.
On the other hand, the daily fantasy sports options provider FanDuel would also benefit from a possible merger, as it would be able to consolidate its presence on the local market. The company which operates from about ten years now offers a great variety of DFS to US customers and has already confirmed its willingness to enter the sport betting market of the country following the US Supreme Court ruling a couple of days ago.
Last year, the company ended the merger negotiations with its local rival DraftKings after the two operators’ merger was blocked by the Federal Trade Commission (FTC) which found that the combined entity would have a market share of approximately 90%. The desired deal faced the harsh criticism not only by the FTC but also by some rival operators who had claimed that a merger between FanDuel and DraftKings would have a negative impact on their performance on the market.