TVG Parent In Talks To Buy Fantasy Sports Operator FanDuel

Adjust Comment Print

Word of the negotiations between the two companies came days after the United States Supreme Court struck down a federal law prohibiting states from offering sports betting. Congress can pass a federal law, but states are free to pass their own regulations.

Paddy Power Betfair has confirmed it is in talks to merge its U.S. business with Edinburgh-founded fantasy sports firm FanDuel.

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.

Paddy Power Betfair has been getting ready for this moment for a while now.

FanDuel, which was blocked from merging with its main competitor DraftKings by the USA competition regulators a year ago, has been valued at $1bn by some analysts.

"Discussions are ongoing and there is no certainty as to whether agreement will be reached, or as to the terms or timing of any transaction". 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. The company also runs an online casino in New Jersey, a horse racing betting exchange, and the USA horseracing TV channel TVG Network.

States will now be able to individually choose whether to legalise sports betting. It already has a large presence in the USA and entered the fantasy sports...

"Given the regulatory and taxation headwinds that European operators are facing in their home markets over the next few years, [the repeal of PASPA] is a very attractive long-term positive for the companies under our coverage and as such is supportive of their long-term growth prospects", they said.

FanDuel's business model was legal before this week's Supreme Court decision because fantasy sports contests are exempt from the Unlawful Internet Gambling Enforcement Act.